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Luk Hing Entertainment Group Holdings (HKSE:08052) Degree of Operating Leverage : 5.06 (As of Jun. 2024)


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What is Luk Hing Entertainment Group Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Luk Hing Entertainment Group Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 5.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Luk Hing Entertainment Group Holdings's Degree of Operating Leverage or its related term are showing as below:

HKSE:08052's Degree of Operating Leverage is not ranked
in the Travel & Leisure industry.
Industry Median: 1.155 vs HKSE:08052: 5.06

Luk Hing Entertainment Group Holdings Degree of Operating Leverage Historical Data

The historical data trend for Luk Hing Entertainment Group 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.

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Luk Hing Entertainment Group Holdings Degree of Operating Leverage Chart

Luk Hing Entertainment Group Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -135.69 0.68 116.82 0.66 -2.30

Luk Hing Entertainment Group Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Jun24
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 1.59 10.04 -3.97 -2.30 5.06

Competitive Comparison of Luk Hing Entertainment Group Holdings's Degree of Operating Leverage

For the Resorts & Casinos subindustry, Luk Hing Entertainment Group 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.


Luk Hing Entertainment Group Holdings's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Luk Hing Entertainment Group Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Luk Hing Entertainment Group Holdings's Degree of Operating Leverage falls into.


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Luk Hing Entertainment Group Holdings Degree of Operating Leverage Calculation

Luk Hing Entertainment Group Holdings'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
=( 21.926 (Jun. 2024) / -18.838 (Jun. 2023) - 1 )/( 48.462 (Jun. 2024) / 84.68 (Jun. 2023) - 1 )
=-2.1639/-0.4277
=5.06***

* 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.


Luk Hing Entertainment Group Holdings  (HKSE:08052) 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.


Luk Hing Entertainment Group Holdings Degree of Operating Leverage Related Terms

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Luk Hing Entertainment Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
168-200 Connaught Road Central, Suite 1505, 15 Floor, Shun Tak Centre West Tower, Sheung Wan, Hong Kong, HKG
Luk Hing Entertainment Group Holdings Ltd is an investment holding company. It is engaged in the food and beverage and entertainment industry. The company's principal activities are the operation of clubs and restaurants, organizing music-related featured events as well as granting loans to entities in the food and beverage and entertainment industry. It generates its revenue in the form of sponsorship income, entrance fee income, loan interest income, and sale of food, beverage, and other products. Geographically, the company generates a majority of its revenue from Hong Kong and has a presence in China.
Executives
Restoran Oversea (cst) Sdn Bhd 2101 Beneficial owner
Au Ka Wai 2103 Interests held jointly with another person
Yeung Chi Shing 2201 Interest of corporation controlled by you
Welmen Investment Co. Ltd
Trendy Pleasure Limited
Lee Wan 2202 Interest of your spouse
Ocean Concept Holdings Limited
Perfect Succeed Limited
Toprich Investment (group) Limited
Yui Tak Investment Limited
Choi Yiu Ying 2101 Beneficial owner
Au Wai Pong Eric
Chan Ting Fai 2202 Interest of your spouse
Choi Siu Kit 2101 Beneficial owner
Poon Ching Tong Tommy 2101 Beneficial owner

Luk Hing Entertainment Group Holdings Headlines

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