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Lesi Group (HKSE:02540) Degree of Operating Leverage : 1.37 (As of Dec. 2024)


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What is Lesi Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lesi Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.37. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:02540's Degree of Operating Leverage is ranked worse than
53.5% of 987 companies
in the Media - Diversified industry
Industry Median: 1.16 vs HKSE:02540: 1.37

Lesi Group Degree of Operating Leverage Historical Data

The historical data trend for Lesi Group'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.

Lesi Group Degree of Operating Leverage Chart

Lesi Group Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 0.66 -1.18 -0.19 1.37

Lesi Group Quarterly Data
Dec20 Dec21 Dec22 Sep23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial -1.18 - -0.19 0.24 1.37

Competitive Comparison of Lesi Group's Degree of Operating Leverage

For the Advertising Agencies subindustry, Lesi Group'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.


Lesi Group's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Lesi Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Lesi Group's Degree of Operating Leverage falls into.


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Lesi Group Degree of Operating Leverage Calculation

Lesi Group'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
=( 83.574 (Dec. 2024) / 77.286 (Dec. 2023) - 1 )/( 727.63 (Dec. 2024) / 686.922 (Dec. 2023) - 1 )
=0.0814/0.0593
=1.37***

* 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.


Lesi Group  (HKSE:02540) 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.


Lesi Group Degree of Operating Leverage Related Terms

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Lesi Group Business Description

Traded in Other Exchanges
N/A
Address
Building 4, No. 10, Jiuxianqiao North Road, 9th Floor, Block D, Xingdi Center, Jiangtai Township, Chaoyang District, Beijing, CHN
Lesi Group Ltd is a mobile advertising service provider in the PRC and mainly provide comprehensive mobile advertising services to its customers for marketing of their brands, products and/or services on media platforms operated by its media partners. The company's services include mobile marketing planning, traffic acquisition, production of ad creatives, ad placements, ad optimisation, ad campaign management and ad distribution. It derives revenue from Mobile advertising solutions services and Advertisement distribution services.
Executives
Ka Lok Holdings Limited 2101 Beneficial owner
Quartet Yutong Holdings Limited 2201 Interest of corporation controlled by you
Remit Sheng Holdings Limited 2201 Interest of corporation controlled by you
Shu Qing 2202 Interest of your spouse
Yu Canliang 2201 Interest of corporation controlled by you
Zhao Libing 2201 Interest of corporation controlled by you

Lesi Group Headlines

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