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Sunshine Insurance Group Co (HKSE:06963) Degree of Operating Leverage : 2.12 (As of Dec. 2024)


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What is Sunshine Insurance Group Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sunshine Insurance Group Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:06963's Degree of Operating Leverage is ranked worse than
68.34% of 338 companies
in the Insurance industry
Industry Median: 0.96 vs HKSE:06963: 2.12

Sunshine Insurance Group Co Degree of Operating Leverage Historical Data

The historical data trend for Sunshine Insurance 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.

Sunshine Insurance Group Co Degree of Operating Leverage Chart

Sunshine Insurance Group Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.54 -0.79 0.48 59.61 2.12

Sunshine Insurance Group Co Semi-Annual Data
Dec19 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 0.48 0.69 59.61 15.29 2.12

Competitive Comparison of Sunshine Insurance Group Co's Degree of Operating Leverage

For the Insurance - Property & Casualty subindustry, Sunshine Insurance 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.


Sunshine Insurance Group Co's Degree of Operating Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Sunshine Insurance Group Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Sunshine Insurance Group Co's Degree of Operating Leverage falls into.


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Sunshine Insurance Group Co Degree of Operating Leverage Calculation

Sunshine Insurance 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
=( 10051.065 (Dec. 2024) / 7530.668 (Dec. 2023) - 1 )/( 80308.157 (Dec. 2024) / 69366.363 (Dec. 2023) - 1 )
=0.3347/0.1577
=2.12***

* 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.


Sunshine Insurance Group Co  (HKSE:06963) 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.


Sunshine Insurance Group Co Degree of Operating Leverage Related Terms

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


Sunshine Insurance Group Co Business Description

Traded in Other Exchanges
Address
No. 66 Lanzhi 2nd Road, Yuehai Street, 3001-3008, Sunshine Insurance Building, Haizhu Community, Nanshan District, Shenzhen, CHN, 518054
Sunshine Insurance Group Co Ltd is mainly engaged in the insurance business. The company has three operating segments; The life insurance segment offers a wide range of life insurance products mainly by Sunshine Life; The property and casualty insurance segment offers a wide range of property and casualty insurance products mainly by Sunshine P&C and Sunshine Surety, and Other business segment mainly provides corporation management and assets management services. It derives a majority of its revenue from the property and casualty insurance segment.
Executives
Hua Tai Zi Jin Tou Zi You Xian Ze Ren Gong Si
Hua Tai Zheng Quan Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Jiang Su Tian Cheng Wu Ye Fa Zhan You Xian Ze Ren Gong Si 2101 Beneficial owner
Hua Shan Rui Lian Ji Jin Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Bei Jing Lin Qi Hao Rui Zi Xun You Xian Gong Si 2201 Interest of corporation controlled by you
Bei Jing Hong Yu Zi Xun Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Zhang Tong 2201 Interest of corporation controlled by you
Chen Zhijie 2201 Interest of corporation controlled by you
Nan Jing Hua Tai Rui Lian Bing Gou Ji Jin Yi Hao You Xian He Huo 2201 Interest of corporation controlled by you
Nan Jing Rui Lian Guan Li Zi Xun He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Jiang Su Hua Tai Rui Lian Bing Gou Ji Jin You Xian He Huo 2201 Interest of corporation controlled by you
Shen Zhen Qian Hai Rui Lian Qi Hao Tou Zi Zhong Xin You Xian He Huo 2201 Interest of corporation controlled by you
Xi Zang Hong Yu Qi Ye Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Shi Yuzhu 2201 Interest of corporation controlled by you
Shang Hai Jian Te Sheng Ming Ke Ji You Xian Gong Si 2101 Beneficial owner

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