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JL Mag Rare-Earth Co (HKSE:06680) Degree of Operating Leverage : -4.27 (As of Mar. 2025)


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What is JL Mag Rare-Earth Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. JL Mag Rare-Earth Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -4.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for JL Mag Rare-Earth Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:06680's Degree of Operating Leverage is ranked better than
84.1% of 2937 companies
in the Industrial Products industry
Industry Median: 1.08 vs HKSE:06680: -4.27

JL Mag Rare-Earth Co Degree of Operating Leverage Historical Data

The historical data trend for JL Mag Rare-Earth 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.

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JL Mag Rare-Earth Co Degree of Operating Leverage Chart

JL Mag Rare-Earth 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 1.31 1.08 0.55 3.03 -41.00

JL Mag Rare-Earth Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 3.04 3.86 9.04 -41.00 -4.27

Competitive Comparison of JL Mag Rare-Earth Co's Degree of Operating Leverage

For the Metal Fabrication subindustry, JL Mag Rare-Earth 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.


JL Mag Rare-Earth Co's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, JL Mag Rare-Earth Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where JL Mag Rare-Earth Co's Degree of Operating Leverage falls into.


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JL Mag Rare-Earth Co Degree of Operating Leverage Calculation

JL Mag Rare-Earth Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 461.875 (Mar. 2025) / 632.938 (Mar. 2024) - 1 )/( 7533.047 (Mar. 2025) / 7144.351 (Mar. 2024) - 1 )
=-0.2703/0.0544
=-4.97***

* 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.


JL Mag Rare-Earth Co  (HKSE:06680) 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.


JL Mag Rare-Earth Co Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of JL Mag Rare-Earth Co's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


JL Mag Rare-Earth Co Business Description

Traded in Other Exchanges
Address
81 West Jinling Road, Industrial Area, Economic and Technological Development Zone, Jiangxi Province, Ganzhou, CHN, 341000
JL Mag Rare-Earth, or JL Mag, is a leading global producer of high-performance rare earth permanent magnets, or REPMs. JL Mag focuses on the production and sale of NdFeB PMs, the most widely used type of REPMs, mainly made from an alloy of neodymium (Nd), iron (Fe) and boron (B). The company is ranked first in the world by high-performance REPMs, according to Frost & Sullivan. JL Mag is also ranked first in the global grain boundary diffusion, or GBD, REPMs market. Its products have a wide array of applications, mainly in new energy vehicles, or NEVs, automotive parts, wind turbine generators, energy-saving variable-frequency air-conditioners.
Executives
Cai Bao Gui 2201 Interest of corporation controlled by you
Hu Zhi Bin 2201 Interest of corporation controlled by you
Jiang Xi Rui De Chuang Ye Tou Zi You Xian Gong Si 2101 Beneficial owner
Li Xin Nong 2201 Interest of corporation controlled by you
Zhu Que Ji Jin Guan Li You Xian Gong Si 2102 Investment manager
Morgan Stanley 2201 Interest of corporation controlled by you
Citic Group Corporation 2201 Interest of corporation controlled by you
Zhong Guo Guo You Qi Ye Hun He Suo You Zhi Gai Ge Ji Jin You Xian Gong Si 2101 Beneficial owner
Zhong Guo Cheng Tong Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Xin Bao Cheng Ren Shou Bao Xian You Xian Gong Si 2101 Beneficial owner
Cr Alpha Investment Ii Limited
Prudential Plc 2101 Beneficial owner
Citic Polaris Limited 2201 Interest of corporation controlled by you
Citic Limited 2201 Interest of corporation controlled by you
China Resources (holdings) Company Limited

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