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Basic House New Life Group (HKSE:08360) Degree of Operating Leverage : -18.60 (As of Dec. 2024)


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What is Basic House New Life Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Basic House New Life Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -18.60. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Basic House New Life Group's Degree of Operating Leverage or its related term are showing as below:

HKSE:08360's Degree of Operating Leverage is ranked better than
93.65% of 1669 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:08360: -18.60

Basic House New Life Group Degree of Operating Leverage Historical Data

The historical data trend for Basic House New Life Group'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.

Basic House New Life Group Degree of Operating Leverage Chart

Basic House New Life Group 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 0.64 0.03 -1.78 0.32 -18.60

Basic House New Life Group 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 1.11 -0.01 0.32 1.35 -18.60

Competitive Comparison of Basic House New Life Group's Degree of Operating Leverage

For the Engineering & Construction subindustry, Basic House New Life Group'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.


Basic House New Life Group's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Basic House New Life Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Basic House New Life Group's Degree of Operating Leverage falls into.


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Basic House New Life Group Degree of Operating Leverage Calculation

Basic House New Life Group'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
=( -7.221 (Dec. 2024) / -15.72 (Dec. 2023) - 1 )/( 65.667 (Dec. 2024) / 63.812 (Dec. 2023) - 1 )
=-0.5406/0.0291
=-18.60***

* 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.


Basic House New Life Group  (HKSE:08360) 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.


Basic House New Life Group Degree of Operating Leverage Related Terms

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Basic House New Life Group Business Description

Traded in Other Exchanges
N/A
Address
44-46 Hung To Road, Century Centre, Unit 204A, 2nd Floor, Kwun Tong, Hong Kong, HKG
Basic House New Life Group Ltd, formerly AL Group Ltd through its subsidiaries, is engaged in interior design and fit-out solutions in Hong Kong. It also provides overall project management solutions. Its services include pre-lease services, interior design & planning, project management, contracting, and customer service. Geographically, the firm generates a majority of its revenue from Hong Kong.
Executives
Lui Yu Kin 2101 Beneficial owner
Chan Hung Kai 2101 Beneficial owner
Space Financial Holdings Limited 2201 Interest of corporation controlled by you
Space Securities Limited 2105 Underwriter
Yeung Ching Yin 2101 Beneficial owner
Legend Investments International Limited 2101 Beneficial owner
Yau Chung Ping 2201 Interest of corporation controlled by you

Basic House New Life Group Headlines

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