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Renrui Human Resources Technology Holdings (HKSE:06919) Degree of Operating Leverage : -6.67 (As of Dec. 2024)


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What is Renrui Human Resources Technology Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Renrui Human Resources Technology Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -6.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Renrui Human Resources Technology Holdings's Degree of Operating Leverage or its related term are showing as below:

HKSE:06919's Degree of Operating Leverage is ranked better than
85.9% of 1000 companies
in the Business Services industry
Industry Median: 0.955 vs HKSE:06919: -6.67

Renrui Human Resources Technology Holdings Degree of Operating Leverage Historical Data

The historical data trend for Renrui Human Resources Technology 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.

Renrui Human Resources Technology Holdings Degree of Operating Leverage Chart

Renrui Human Resources Technology Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -4.08 -0.53 2.90 17.56 -6.67

Renrui Human Resources Technology Holdings Semi-Annual Data
Dec16 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 2.90 -27.56 17.56 1.56 -6.67

Competitive Comparison of Renrui Human Resources Technology Holdings's Degree of Operating Leverage

For the Staffing & Employment Services subindustry, Renrui Human Resources Technology 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.


Renrui Human Resources Technology Holdings's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Renrui Human Resources Technology Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Renrui Human Resources Technology Holdings's Degree of Operating Leverage falls into.


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Renrui Human Resources Technology Holdings Degree of Operating Leverage Calculation

Renrui Human Resources Technology Holdings'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
=( -27.417 (Dec. 2024) / 92.064 (Dec. 2023) - 1 )/( 5843.637 (Dec. 2024) / 4891.567 (Dec. 2023) - 1 )
=-1.2978/0.1946
=-6.67***

* 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.


Renrui Human Resources Technology Holdings  (HKSE:06919) 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.


Renrui Human Resources Technology Holdings Degree of Operating Leverage Related Terms

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Renrui Human Resources Technology Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 688 Mid-Section Tianfu Avenue, No. 601, 602, 603, 6th Floor, Block 3, Chengdu High-tech Zone, Free Trade Pilot Zone, Sichuan, Chengdu, CHN
Renrui Human Resources Technology Holdings Ltd is a fast-growing Chinese HR company offering flexible staffing, Its segments include Comprehensive flexible staffing, Professional recruitment, and other HR solutions. The company generates a majority of its revenue from the Comprehensive Flexible Staffing segment, which mainly includes general service outsourcing, digital technology and cloud services, digital operations, and customer services.
Executives
Wang Fen 2202 Interest of your spouse
Wu Qi 2202 Interest of your spouse
Zhang Feng 2103 Interests held jointly with another person
Zhang Jianguo 2103 Interests held jointly with another person
Zhang Jianmei 2103 Interests held jointly with another person
Chen Bin 2202 Interest of your spouse
Beyondsoft International (singapore) Pte. Ltd. 2101 Beneficial owner
Bo Yan Ke Ji Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Vms Strategic Investment Fund, L.p. 2101 Beneficial owner
Vms Strategic Investment Gp Limited 2201 Interest of corporation controlled by you
Vms Holdings Limited 2201 Interest of corporation controlled by you
Vms Fin Services Holdings Limited 2201 Interest of corporation controlled by you
Mak Siu Hang Viola 2201 Interest of corporation controlled by you
Ming Feng Holdings Limited 2101 Beneficial owner
Vms Auto Italia Fin Services Holdings Limited 2201 Interest of corporation controlled by you

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