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Excellence Commercial Property & Facilities Management Group (HKSE:06989) Degree of Operating Leverage : -0.75 (As of Dec. 2024)


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What is Excellence Commercial Property & Facilities Management Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Excellence Commercial Property & Facilities Management Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Excellence Commercial Property & Facilities Management Group's Degree of Operating Leverage or its related term are showing as below:

HKSE:06989's Degree of Operating Leverage is ranked better than
72.54% of 1697 companies
in the Real Estate industry
Industry Median: 0.92 vs HKSE:06989: -0.75

Excellence Commercial Property & Facilities Management Group Degree of Operating Leverage Historical Data

The historical data trend for Excellence Commercial Property & Facilities Management Group'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.

Excellence Commercial Property & Facilities Management Group Degree of Operating Leverage Chart

Excellence Commercial Property & Facilities Management Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.31 1.45 4.07 -3.08 -0.75

Excellence Commercial Property & Facilities Management Group Semi-Annual Data
Dec17 Dec18 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 4.07 4.49 -3.08 -0.09 -0.75

Competitive Comparison of Excellence Commercial Property & Facilities Management Group's Degree of Operating Leverage

For the Real Estate Services subindustry, Excellence Commercial Property & Facilities Management Group'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.


Excellence Commercial Property & Facilities Management Group's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Excellence Commercial Property & Facilities Management Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Excellence Commercial Property & Facilities Management Group's Degree of Operating Leverage falls into.


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Excellence Commercial Property & Facilities Management Group Degree of Operating Leverage Calculation

Excellence Commercial Property & Facilities Management Group'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
=( 471.649 (Dec. 2024) / 490.835 (Dec. 2023) - 1 )/( 4518.64 (Dec. 2024) / 4295.06 (Dec. 2023) - 1 )
=-0.0391/0.0521
=-0.75***

* 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.


Excellence Commercial Property & Facilities Management Group  (HKSE:06989) 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.


Excellence Commercial Property & Facilities Management Group Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Excellence Commercial Property & Facilities Management Group's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Excellence Commercial Property & Facilities Management Group Business Description

Traded in Other Exchanges
N/A
Address
Fuhua Third Road, 38Ath Floor, Tower 4, Excellence Century Center, Futian District, Guangdong Province, Shenzhen, CHN, 518000
Excellence Commercial Property & Facilities Management Group Ltd is a commercial property management service provider in China. The company's projects include commercial properties, public and industrial properties, and residential properties. It operates in three segments namely Finance services, Other services, and Property management services that provide basic property management services or system supply and installation services to property developers, property owners, and tenants, and value-added services to such customers, including asset services which includes preliminary property consulting services, property leasing and sales agency services, asset-light property operation services and space operation services and corporate services.
Executives
Xiao Xingping 2202 Interest of your spouse
Li Xiaoping 2101 Beneficial owner
Li Wa 2201 Interest of corporation controlled by you
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Urban Hero Investments Limited 2101 Beneficial owner
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Autumn Riches Limited 2101 Beneficial owner
Li Yuan 2201 Interest of corporation controlled by you

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