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Guangdong Kanghua Healthcare Group Co (HKSE:03689) Degree of Operating Leverage : 31.88 (As of Dec. 2024)


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What is Guangdong Kanghua Healthcare Group Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Guangdong Kanghua Healthcare Group Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 31.88. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:03689's Degree of Operating Leverage is ranked worse than
94.84% of 640 companies
in the Healthcare Providers & Services industry
Industry Median: 0.515 vs HKSE:03689: 31.88

Guangdong Kanghua Healthcare Group Co Degree of Operating Leverage Historical Data

The historical data trend for Guangdong Kanghua Healthcare 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.

Guangdong Kanghua Healthcare Group Co Degree of Operating Leverage Chart

Guangdong Kanghua Healthcare Group 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 20.92 -246.49 3.49 10.66 31.88

Guangdong Kanghua Healthcare Group Co Semi-Annual Data
Dec14 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 3.49 -4.73 10.66 -15.44 31.88

Competitive Comparison of Guangdong Kanghua Healthcare Group Co's Degree of Operating Leverage

For the Medical Care Facilities subindustry, Guangdong Kanghua Healthcare 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.


Guangdong Kanghua Healthcare Group Co's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Guangdong Kanghua Healthcare Group Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Guangdong Kanghua Healthcare Group Co's Degree of Operating Leverage falls into.


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Guangdong Kanghua Healthcare Group Co Degree of Operating Leverage Calculation

Guangdong Kanghua Healthcare 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
=( 80.078 (Dec. 2024) / 178.109 (Dec. 2023) - 1 )/( 2194.781 (Dec. 2024) / 2233.341 (Dec. 2023) - 1 )
=-0.5504/-0.0173
=31.88***

* 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.


Guangdong Kanghua Healthcare Group Co  (HKSE:03689) 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.


Guangdong Kanghua Healthcare Group Co Degree of Operating Leverage Related Terms

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Guangdong Kanghua Healthcare Group Co Business Description

Traded in Other Exchanges
N/A
Address
1000 Dongguan Avenue, Guangdong Province, Dongguan, CHN
Guangdong Kanghua Healthcare Group Co Ltd provides healthcare services. The reportable segments are as follows, The Hospital services segment includes the provision of hospital services including inpatient healthcare services, outpatient healthcare services, and physical examination services; Rehabilitation and other healthcare services including the provision of rehabilitation services; Elderly healthcare services include the provision of elderly healthcare services, including assisted living, adult daycare, longterm care, residential care and hospice care to the aged patients; and Haemodialysis services segment t is principally engaged in the operation of haemodialysis outpatient centres. It generates all of its revenue from the PRC.
Executives
Wang Jiaxian 2101 Beneficial owner
Wang Chi Yeung 2101 Beneficial owner
Mialkos Tomasz Jakub 2101 Beneficial owner
Chen Zhaoming 2101 Beneficial owner
New China Asset Management (hong Kong) Limited 2102 Investment manager
New China Life Insurance Company Ltd. 2101 Beneficial owner
New China Asset Management Company Limited 2201 Interest of corporation controlled by you
Xin Hua Zi Chan Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Zhan Yong Xiang 2101 Beneficial owner
Lin Lijun 2201 Interest of corporation controlled by you
Lvc Assets Management Limited 2201 Interest of corporation controlled by you
Lvc Kh Investment L.p. 2101 Beneficial owner
Haitian (hk) Holdings Limited 2101 Beneficial owner

Guangdong Kanghua Healthcare Group Co Headlines

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