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Shenghua Lande Scitech (HKSE:08106) Degree of Operating Leverage : -0.74 (As of Jun. 2024)


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What is Shenghua Lande Scitech Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Shenghua Lande Scitech's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -0.74. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Shenghua Lande Scitech's Degree of Operating Leverage or its related term are showing as below:

HKSE:08106's Degree of Operating Leverage is ranked better than
68.52% of 2411 companies
in the Hardware industry
Industry Median: 1.02 vs HKSE:08106: -0.74

Shenghua Lande Scitech Degree of Operating Leverage Historical Data

The historical data trend for Shenghua Lande Scitech'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.

Shenghua Lande Scitech Degree of Operating Leverage Chart

Shenghua Lande Scitech 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 -1.76 -3.58 -5.67 8.08 -3.45

Shenghua Lande Scitech 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 7.69 5.79 5.60 -3.45 -0.74

Competitive Comparison of Shenghua Lande Scitech's Degree of Operating Leverage

For the Electronics & Computer Distribution subindustry, Shenghua Lande Scitech'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.


Shenghua Lande Scitech's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Shenghua Lande Scitech's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Shenghua Lande Scitech's Degree of Operating Leverage falls into.



Shenghua Lande Scitech Degree of Operating Leverage Calculation

Shenghua Lande Scitech'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
=( -32.405 (Jun. 2024) / -24.421 (Jun. 2023) - 1 )/( 66.322 (Jun. 2024) / 118.635 (Jun. 2023) - 1 )
=0.3269/-0.441
=-0.74***

* 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.


Shenghua Lande Scitech  (HKSE:08106) 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.


Shenghua Lande Scitech Degree of Operating Leverage Related Terms

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


Shenghua Lande Scitech Business Description

Traded in Other Exchanges
N/A
Address
239 Shuanglong Street, 11th Floor, Building 1, Xitou Innocentre, Xihu District, Zhejiang Province, Hangzhou, CHN
Shenghua Lande Scitech Ltd is principally engaged in the trading of hardware and computer software and investment holding. The company operates in various segments that include the provision of smart city solutions, the provision of e-commerce operation solution services, and the trading of hardware and computer software. The majority of its revenue is generated from the trading of hardware and computer software segment. All of the company's revenue is generated from the People's Republic of China.
Executives
Qian Xiaomei 2202 Interest of your spouse
Xia Shilin 2201 Interest of corporation controlled by you
Fong For 2101 Beneficial owner
Sheng Yang You Xian Gong Si 2101 Beneficial owner
De Qing Hui Sheng Tou Zi You Xian Gong Si 2201 Interest of corporation controlled by you
Zhe Jiang Sheng Hua Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
He Yan 2202 Interest of your spouse
Zhang Xuguang 2101 Beneficial owner

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