GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Sheng Tang Holdings Ltd (HKSE:08305) » Definitions » Degree of Operating Leverage

Sheng Tang Holdings (HKSE:08305) Degree of Operating Leverage : -19.61 (As of Dec. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Sheng Tang Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sheng Tang Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -19.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08305's Degree of Operating Leverage is ranked better than
93.72% of 1673 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:08305: -19.61

Sheng Tang Holdings Degree of Operating Leverage Historical Data

The historical data trend for Sheng Tang 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.

Sheng Tang Holdings Degree of Operating Leverage Chart

Sheng Tang 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 5.84 -338.52 -2.17 -0.98 -19.61

Sheng Tang 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 1.63 -3.74 -0.98 0.87 -19.61

Competitive Comparison of Sheng Tang Holdings's Degree of Operating Leverage

For the Engineering & Construction subindustry, Sheng Tang 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.


Sheng Tang Holdings's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Sheng Tang Holdings's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Sheng Tang Holdings Degree of Operating Leverage Calculation

Sheng Tang 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
=( -2.727 (Dec. 2024) / -28.635 (Dec. 2023) - 1 )/( 150.023 (Dec. 2024) / 143.405 (Dec. 2023) - 1 )
=-0.9048/0.0461
=-19.61***

* 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.


Sheng Tang Holdings  (HKSE:08305) 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.


Sheng Tang Holdings Degree of Operating Leverage Related Terms

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


Sheng Tang Holdings Business Description

Traded in Other Exchanges
N/A
Address
148 Electric Road, Room 2502, 25th Floor, North Point, Hong Kong, HKG
Sheng Tang Holdings Ltd Formerly Allurefem Holding Ltd is a multi-disciplinary contractor in Hong Kong. The company provides various services such as E&M Works, Civil Works, Steel Works, and others. It offers its services to the Construction Industry, Registers of the Buildings Department, Minor Works contractors in Class I, II, and III of all types of Specialist contractors, and others. The company's reportable segments are RMAA works projects, New construction works projects, and Corrosion protection works projects. It generates a majority of its revenue from the RMAA works projects. Geographically, the company generates the majority of its revenue from Hong Kong.
Executives
Li Mung Tat 2101 Beneficial owner
Zhang Pei Pei 2101 Beneficial owner
Advanced Pacific Enterprises Limited 2101 Beneficial owner
Heung Chung Sum 2201 Interest of corporation controlled by you
Xu Changcheng 2101 Beneficial owner
China Innovation Investment Limited 2101 Beneficial owner

Sheng Tang Holdings Headlines

No Headlines