GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Twintek Investment Holdings Ltd (HKSE:06182) » Definitions » Degree of Operating Leverage

Twintek Investment Holdings (HKSE:06182) Degree of Operating Leverage : 5.86 (As of Sep. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Twintek Investment Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Twintek Investment Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 5.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:06182's Degree of Operating Leverage is ranked worse than
81.59% of 1673 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:06182: 5.86

Twintek Investment Holdings Degree of Operating Leverage Historical Data

The historical data trend for Twintek Investment Holdings'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.

Twintek Investment Holdings Degree of Operating Leverage Chart

Twintek Investment Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.53 -1.60 3.74 4.99 -1.29

Twintek Investment Holdings Semi-Annual Data
Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 6.73 4.99 13.25 -1.29 5.86

Competitive Comparison of Twintek Investment Holdings's Degree of Operating Leverage

For the Engineering & Construction subindustry, Twintek Investment Holdings'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.


Twintek Investment Holdings's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Twintek Investment Holdings's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Twintek Investment Holdings Degree of Operating Leverage Calculation

Twintek Investment Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -11.939 (Sep. 2024) / -32.348 (Sep. 2023) - 1 )/( 114.458 (Sep. 2024) / 128.256 (Sep. 2023) - 1 )
=-0.6309/-0.1076
=5.86***

* 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.


Twintek Investment Holdings  (HKSE:06182) 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.


Twintek Investment Holdings Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Twintek Investment Holdings's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Twintek Investment Holdings Business Description

Traded in Other Exchanges
N/A
Address
1065 King's Road, Quarry Bay, Room 806, 8th Floor, Eastern Centre, Hong Kong, HKG
Twintek Investment Holdings Ltd is a building materials contractor. The company offers building materials and relevant installation services mainly in Hong Kong. Its products include timber flooring products; interior wall-fill materials, in particular, gypsum block, plasterboard and drywall partition products, interior composite panel lining, in particular, SPC wall panels, demountable partition system, and roof tiles. The Group's revenue was generated from two segments of Construction contracts including the provision of construction and engineering services, Sales of building materials including trading of building materials. A majority of revenue is generated from the Construction contract segment. The group's operations are located in Hong Kong.
Executives
Helios Enterprise Holding Limited 2101 Beneficial owner
Fung Pik Mei 2202 Interest of your spouse
Lo Wing Cheung 2201 Interest of corporation controlled by you

Twintek Investment Holdings Headlines

No Headlines