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Tianjin Construction Development Group Co (HKSE:02515) Degree of Operating Leverage : 6.25 (As of Dec. 2024)


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What is Tianjin Construction Development Group Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tianjin Construction Development Group Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 6.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Tianjin Construction Development Group Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:02515's Degree of Operating Leverage is ranked worse than
82.78% of 1672 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:02515: 6.25

Tianjin Construction Development Group Co Degree of Operating Leverage Historical Data

The historical data trend for Tianjin Construction Development Group Co's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tianjin Construction Development Group Co Degree of Operating Leverage Chart

Tianjin Construction Development Group Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 2.63 5.57 2.11 6.25

Tianjin Construction Development Group Co Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial 5.57 5.92 2.11 3.41 6.25

Competitive Comparison of Tianjin Construction Development Group Co's Degree of Operating Leverage

For the Engineering & Construction subindustry, Tianjin Construction Development Group Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tianjin Construction Development Group Co's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Tianjin Construction Development Group Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Tianjin Construction Development Group Co's Degree of Operating Leverage falls into.


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Tianjin Construction Development Group Co Degree of Operating Leverage Calculation

Tianjin Construction Development Group Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 27.275 (Dec. 2024) / 51.751 (Dec. 2023) - 1 )/( 322.972 (Dec. 2024) / 349.393 (Dec. 2023) - 1 )
=-0.473/-0.0756
=6.25***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Tianjin Construction Development Group Co  (HKSE:02515) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Tianjin Construction Development Group Co Degree of Operating Leverage Related Terms

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Tianjin Construction Development Group Co Business Description

Traded in Other Exchanges
N/A
Address
No. 112 Dongting Road, Economic and Technological Development Zone, Binhai New Area, Tianjin, CHN
Tianjin Construction Development Group Co Ltd is a construction group based in Tianjin that offers comprehensive construction services. It is engaged in the construction business and strove to provide high-quality construction services to its customers by leveraging its self-developed Jiexiao System, a comprehensive construction project management software equipped with multiple functions including cost monitoring, progress measuring and resources tracking.
Executives
Dou Enyan 2202 Interest of your spouse
Wang Wenbin 2201 Interest of corporation controlled by you
Shengyuan Group (tianjin) Co., Ltd. 2201 Interest of corporation controlled by you
Shengyuan Group Holdings (tianjin) Co., Ltd. 2101 Beneficial owner
Shanshengyuan (tianjin) Enterprise Management Partnership (limited Partnership) 2201 Interest of corporation controlled by you
Zhiweilai (tianjin) Enterprise Management Co. Limited 2101 Beneficial owner
Gongmeihao (tianjin) Enterprise Management Co. Limited 2101 Beneficial owner
Huizhi (tianjin) Entrepreneurial Space Service Center (limited Partnership) 2201 Interest of corporation controlled by you
Jushi (tianjin) Entrepreneurial Management Center (limited Partnership) 2201 Interest of corporation controlled by you
Zhao Kuanghua 2201 Interest of corporation controlled by you
Zhao Xiaorong 2201 Interest of corporation controlled by you
Huatai Securities Co., Ltd. 2201 Interest of corporation controlled by you

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