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Pu'er Lancang Ancient Tea Co (HKSE:06911) Degree of Operating Leverage : -3.17 (As of Jun. 2024)


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What is Pu'er Lancang Ancient Tea Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pu'er Lancang Ancient Tea Co's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -3.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Pu'er Lancang Ancient Tea Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:06911's Degree of Operating Leverage is ranked better than
76.99% of 1843 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs HKSE:06911: -3.17

Pu'er Lancang Ancient Tea Co Degree of Operating Leverage Historical Data

The historical data trend for Pu'er Lancang Ancient Tea 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.

Pu'er Lancang Ancient Tea Co Degree of Operating Leverage Chart

Pu'er Lancang Ancient Tea Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- 0.24 - 0.55

Pu'er Lancang Ancient Tea Co Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Degree of Operating Leverage Get a 7-Day Free Trial - - 1.25 0.55 -3.17

Competitive Comparison of Pu'er Lancang Ancient Tea Co's Degree of Operating Leverage

For the Farm Products subindustry, Pu'er Lancang Ancient Tea 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.


Pu'er Lancang Ancient Tea Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Pu'er Lancang Ancient Tea Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Pu'er Lancang Ancient Tea Co's Degree of Operating Leverage falls into.


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Pu'er Lancang Ancient Tea Co Degree of Operating Leverage Calculation

Pu'er Lancang Ancient Tea Co's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 92.159 (Jun. 2024) / 103.111 (Jun. 2023) - 1 )/( 533.077 (Jun. 2024) / 515.786 (Jun. 2023) - 1 )
=-0.1062/0.0335
=-3.17***

* 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.


Pu'er Lancang Ancient Tea Co  (HKSE:06911) 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.


Pu'er Lancang Ancient Tea Co Degree of Operating Leverage Related Terms

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Pu'er Lancang Ancient Tea Co Business Description

Traded in Other Exchanges
N/A
Address
Pingzhang Road, West Suburb Hot Spring Community, Lancang Lahu Ethnic Autonomous County, Yunnan Province, Menglang Town, Puer, CHN
Pu'er Lancang Ancient Tea Co Ltd is principally engaged in the development, manufacturing, and sales of tea products, primarily Pu'er tea products, in China. The Company also engaged in the production of tea products, food production and sales.
Executives
China Credit Trust Co., Ltd 2201 Interest of corporation controlled by you
Harvest Fund Management Co., Ltd. 2201 Interest of corporation controlled by you
Lan Cang Lv Se Zi Yuan Tou Zi You Xian Gong Si 2101 Beneficial owner
Lan Cang Xian Guo You Zi Chan Jing Ying You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Lan Cang Xian Tou Zi Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Sheng Song Lan Cang Sheng Shi Cha Xiang Yi Hao Si Mu Zheng Quan Tou Zi Ji Jin 2101 Beneficial owner
Dong Xing An Xin Hao Dan Yi Zi Chan Guan Li Ji Hua 2301 Trustee
Wang Chen 2201 Interest of corporation controlled by you
Zhang Liang 2201 Interest of corporation controlled by you
Zhong Guo Hai Jing Ji Tuan You Xian Gong Si 2101 Beneficial owner
Wang Chunyu 2101 Beneficial owner

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