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Eco-Tek Holdings (HKSE:08169) Degree of Operating Leverage : 13.52 (As of Oct. 2024)


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What is Eco-Tek Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Eco-Tek Holdings's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was 13.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08169's Degree of Operating Leverage is ranked worse than
90.63% of 2924 companies
in the Industrial Products industry
Industry Median: 1.095 vs HKSE:08169: 13.52

Eco-Tek Holdings Degree of Operating Leverage Historical Data

The historical data trend for Eco-Tek 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.

Eco-Tek Holdings Degree of Operating Leverage Chart

Eco-Tek Holdings Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -44.96 -0.41 0.66 6.33 13.52

Eco-Tek Holdings Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Apr24 Oct24
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 2.11 3.85 6.33 0.68 13.52

Competitive Comparison of Eco-Tek Holdings's Degree of Operating Leverage

For the Pollution & Treatment Controls subindustry, Eco-Tek 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.


Eco-Tek Holdings's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Eco-Tek Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Eco-Tek Holdings's Degree of Operating Leverage falls into.


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Eco-Tek Holdings Degree of Operating Leverage Calculation

Eco-Tek Holdings's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.327 (Oct. 2024) / 9.527 (Oct. 2023) - 1 )/( 94.644 (Oct. 2024) / 101.924 (Oct. 2023) - 1 )
=-0.9657/-0.0714
=13.52***

* 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.


Eco-Tek Holdings  (HKSE:08169) 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.


Eco-Tek Holdings Degree of Operating Leverage Related Terms

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Eco-Tek Holdings Business Description

Traded in Other Exchanges
N/A
Address
20 Westlands Road, Quarry Bay, Unit 2, 9th Floor, Westlands Centre, Hong Kong, HKG
Eco-Tek Holdings Ltd and its subsidiaries are principally involved in the marketing, sales, servicing, research, and development of environmental protection-related products and services. The company operates in two segments: Environment-friendly products and Water supply plants. The environment-friendly products segment, which accounts for the key revenue is into the sale of general & industrial environment-friendly products, components, and other related accessories. Its geographical segments are Hong Kong, PRC, and others, of which key revenue comes from the PRC.
Executives
Pau Kwok Ping 2101 Beneficial owner
Crayne Company Limited 2101 Beneficial owner
Wide Sky Management Limited (formerly Known As Wide Sky Management (ptc) Limited) 2201 Interest of corporation controlled by you
Chiang Lily 2307 Founder of a discretionary trust who can infl
Virtue Trustees (switzerland) Ag 2301 Trustee

Eco-Tek Holdings Headlines

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