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ECI Technology Holdings (HKSE:08013) Degree of Operating Leverage : 3.55 (As of Feb. 2025)


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What is ECI Technology Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ECI Technology Holdings's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 3.55. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08013's Degree of Operating Leverage is ranked worse than
74.15% of 1002 companies
in the Business Services industry
Industry Median: 0.955 vs HKSE:08013: 3.55

ECI Technology Holdings Degree of Operating Leverage Historical Data

The historical data trend for ECI 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.

ECI Technology Holdings Degree of Operating Leverage Chart

ECI Technology Holdings Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.69 6.91 4.82 -0.19 3.70

ECI Technology Holdings Semi-Annual Data
Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25
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 -134.96 -0.19 0.18 3.70 3.55

Competitive Comparison of ECI Technology Holdings's Degree of Operating Leverage

For the Specialty Business Services subindustry, ECI 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.


ECI Technology Holdings's Degree of Operating Leverage Distribution in the Business Services Industry

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

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


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ECI Technology Holdings Degree of Operating Leverage Calculation

ECI Technology Holdings's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 7.725 (Feb. 2025) / 9.288 (Feb. 2024) - 1 )/( 193.793 (Feb. 2025) / 203.435 (Feb. 2024) - 1 )
=-0.1683/-0.0474
=3.55***

* 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.


ECI Technology Holdings  (HKSE:08013) 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.


ECI Technology Holdings Degree of Operating Leverage Related Terms

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ECI Technology Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 62 Hoi Yuen Road, Factory D, 3rd Floor, Block II, Camelpaint Buildings, Block I and Block II, Kowloon, Hong Kong, HKG
ECI Technology Holdings Ltd is engaged in the provision of extra-low voltage (ELV) solutions in Hong Kong. The services of the company include the installation and maintenance of various systems, including central control monitoring systems; and telecommunications and broadcasting services systems. Business operating segments include; Installation and maintenance services, security guarding services, and Electric vehicle charging operations. Key revenue is earned from installation and maintenance services activity.
Executives
Yang Shuo 2101 Beneficial owner
Eci Asia Investment Limited 2101 Beneficial owner
Ng Tai Wing 2201 Interest of corporation controlled by you
Wong Tsz Man 2202 Interest of your spouse

ECI Technology Holdings Headlines

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