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GL-Carlink Technology Holding (HKSE:02531) Degree of Operating Leverage : -1.56 (As of Dec. 2024)


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What is GL-Carlink Technology Holding Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. GL-Carlink Technology Holding's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -1.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for GL-Carlink Technology Holding's Degree of Operating Leverage or its related term are showing as below:

HKSE:02531's Degree of Operating Leverage is ranked better than
74.4% of 1285 companies
in the Vehicles & Parts industry
Industry Median: 1 vs HKSE:02531: -1.56

GL-Carlink Technology Holding Degree of Operating Leverage Historical Data

The historical data trend for GL-Carlink Technology Holding'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.

GL-Carlink Technology Holding Degree of Operating Leverage Chart

GL-Carlink Technology Holding Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 1.15 0.30 -1.56

GL-Carlink Technology Holding Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial 1.15 - 0.30 0.80 -1.56

Competitive Comparison of GL-Carlink Technology Holding's Degree of Operating Leverage

For the Auto Parts subindustry, GL-Carlink Technology Holding'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.


GL-Carlink Technology Holding's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, GL-Carlink Technology Holding's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where GL-Carlink Technology Holding's Degree of Operating Leverage falls into.


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GL-Carlink Technology Holding Degree of Operating Leverage Calculation

GL-Carlink Technology Holding'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
=( 44.109 (Dec. 2024) / 66.995 (Dec. 2023) - 1 )/( 747.817 (Dec. 2024) / 613.139 (Dec. 2023) - 1 )
=-0.3416/0.2197
=-1.56***

* 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.


GL-Carlink Technology Holding  (HKSE:02531) 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.


GL-Carlink Technology Holding Degree of Operating Leverage Related Terms

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GL-Carlink Technology Holding Business Description

Traded in Other Exchanges
N/A
Address
3370 Liuxian Avenue, 14th Floor, Building 1, Chongwen Garden, Nanshan IPark, Nanshan District, Guangdong Province, Shenzhen, CHN, 518057
GL-Carlink Technology Holding Ltd is an in-vehicle hardware and SaaS marketing and management service provider for automotive aftermarket industry in China. It has a focus on (i) sales of in-vehicle hardware products; and (ii) provision of SaaS marketing and management services, covering SaaS subscription services and SaaS value-added services. Key revenue is generated from sales of in-vehicle hardware products.
Executives
Jiang Zhong Yong 2201 Interest of corporation controlled by you
Zhu Lei 2201 Interest of corporation controlled by you
Gao He Nan 2201 Interest of corporation controlled by you
Yan Tai Long He Tou Zi You Xian Gong Si 2101 Beneficial owner
Guang Xi Zi Mao Qu Huo Zhen Duo Wang Luo Ke Ji You Xian Gong Si 2106 Person having a security interest in shares
Ma An Shan Huai Xin Ji Shi Gu Quan Tou Zi He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Hu Guang Hui 2201 Interest of corporation controlled by you
Huaixin Co-stone Investment Limited 2101 Beneficial owner
Ma An Shan Shen Zhou Ji Shi Gu Quan Tou Zi He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Zhang Wei 2201 Interest of corporation controlled by you
Ji Shi Zi Chan Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Wu Lu Mu Qi Feng Huang Ji Shi Gu Quan Tou Zi Guan Li You Xian He Huo Qi Ye 2201 Interest of corporation controlled by you
Shang Hai Ke Shen Guan Li Zi Xun You Xian Gong Si 2201 Interest of corporation controlled by you
Xi Zang Tian Ji Ji Shi Chuang Ye Tou Zi You Xian Gong Si 2201 Interest of corporation controlled by you
Zhu Hui 2201 Interest of corporation controlled by you

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