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Binhai Investment Co (HKSE:02886) Degree of Operating Leverage : 4.08 (As of Dec. 2024)


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What is Binhai Investment Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Binhai Investment Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 4.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Binhai Investment Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:02886's Degree of Operating Leverage is ranked worse than
77.41% of 487 companies
in the Utilities - Regulated industry
Industry Median: 0.86 vs HKSE:02886: 4.08

Binhai Investment Co Degree of Operating Leverage Historical Data

The historical data trend for Binhai Investment 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.

Binhai Investment Co Degree of Operating Leverage Chart

Binhai Investment Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.51 0.32 -0.61 0.49 4.08

Binhai Investment Co Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.61 -1.53 0.49 0.61 4.08

Competitive Comparison of Binhai Investment Co's Degree of Operating Leverage

For the Utilities - Regulated Gas subindustry, Binhai Investment 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.


Binhai Investment Co's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Binhai Investment Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Binhai Investment Co's Degree of Operating Leverage falls into.


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Binhai Investment Co Degree of Operating Leverage Calculation

Binhai Investment 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
=( 448.918 (Dec. 2024) / 517.71 (Dec. 2023) - 1 )/( 6197.801 (Dec. 2024) / 6406.681 (Dec. 2023) - 1 )
=-0.1329/-0.0326
=4.08***

* 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.


Binhai Investment Co  (HKSE:02886) 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.


Binhai Investment Co Degree of Operating Leverage Related Terms

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Binhai Investment Co Business Description

Traded in Other Exchanges
N/A
Address
1 Matheson Street, Causeway Bay, Suites 3205-07, 32nd Floor, Tower Two, Times Square, Hong Kong, HKG
Binhai Investment Co Ltd is an investment holding company engaged in piped natural gas, construction, and gas pipeline installation service, gas passing through service, and sales of bottled natural gas. It derives a majority of its revenue from construction, and gas pipeline installation services in which the group constructs gas pipelines for its clients and connects such pipelines to the group's main gas pipeline networks and charges construction and gas pipeline installation service fees from industrial and commercial customers, property developers and property management companies.
Executives
Teda Investment Holding Co., Ltd.
Tian Jin Tai Da Shi Ye Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Tian Jin Bo Hai Guo You Zi Chan Jing Ying Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Tsinlien Group Company Limited 2201 Interest of corporation controlled by you
Jin Lian Tian Jin Zi Chan Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Tianjin Teda Investment Holding Co., Ltd. 2201 Interest of corporation controlled by you
China Petrochemical Corporation 2101 Beneficial owner
Zhong Guo Shi You Hua Gong Gu Fen You Xian Gong Si 2101 Beneficial owner

Binhai Investment Co Headlines

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