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China Netcom Technology Holdings (HKSE:08071) Degree of Operating Leverage : -0.14 (As of Dec. 2024)


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What is China Netcom Technology Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. China Netcom Technology Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08071's Degree of Operating Leverage is ranked better than
63.28% of 2666 companies
in the Software industry
Industry Median: 0.785 vs HKSE:08071: -0.14

China Netcom Technology Holdings Degree of Operating Leverage Historical Data

The historical data trend for China Netcom 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.

China Netcom Technology Holdings Degree of Operating Leverage Chart

China Netcom Technology Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.03 -171.31 1.79 -0.64 -0.14

China Netcom Technology Holdings Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.30 -2.29 -0.64 1.04 -0.14

Competitive Comparison of China Netcom Technology Holdings's Degree of Operating Leverage

For the Software - Application subindustry, China Netcom 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.


China Netcom Technology Holdings's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, China Netcom Technology Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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China Netcom Technology Holdings Degree of Operating Leverage Calculation

China Netcom 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
=( -11.82 (Dec. 2024) / -13.005 (Dec. 2023) - 1 )/( 26.918 (Dec. 2024) / 16.231 (Dec. 2023) - 1 )
=-0.0911/0.6584
=-0.14***

* 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.


China Netcom Technology Holdings  (HKSE:08071) 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.


China Netcom Technology Holdings Degree of Operating Leverage Related Terms

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China Netcom Technology Holdings Business Description

Traded in Other Exchanges
N/A
Address
89 Queensway, Office 2401A, 24th Floor, Tower One, Lippo Centre, Hong Kong, HKG
China Netcom Technology Holdings Ltd and its subsidiaries are engaged in the Smart Retail Business and Automotive Culture Business. The vast majority of its revenue is generated from Smart Retail Business, which is into the provision of new retail digital transformation solutions and new retail integrated software service platform to chain retailers and merchants, and extended services such as cloud services, omnichannel payment services, and SMS marketing services, etc. Geographically, the company has business operations in the PRC and Hong Kong, of which key revenue is derived from the PRC.
Executives
Wang Yonghua 2201 Interest of corporation controlled by you
Tiantu Investments International Limited 2101 Beneficial owner
Shen Zhen Shi Tian Tu Tou Zi Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Zheng Ming Gao 2201 Interest of corporation controlled by you
Shan Dong Qi Chen Zhong Ke Tou Zi Kong Gu You Xian Gong Si 2201 Interest of corporation controlled by you
Ning Bo Qi Chen Tou Zi Kong Gu You Xian Gong Si 2201 Interest of corporation controlled by you
Bei Jing Tong Sen Zi Ben Kong Gu You Xian Gong Si 2201 Interest of corporation controlled by you
Hang Zhou Jia Hao Ke Ji You Xian Gong Si 2201 Interest of corporation controlled by you
Shang Hai Wu Niu Wang Luo Ke Ji You Xian Gong Si
Hang Zhou Zhen Niu Xin Xi Ke Ji You Xian Gong Si 2201 Interest of corporation controlled by you
51 Credit Card Inc. 2201 Interest of corporation controlled by you
51 Credit Card (china) Limited 2201 Interest of corporation controlled by you
51renpin.com Inc.
Zuo Lei 2101 Beneficial owner
Zuo Lei 2101 Beneficial owner

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