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Harbour Equine Holdings (HKSE:08377) Degree of Operating Leverage : 26.55 (As of Dec. 2024)


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What is Harbour Equine Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Harbour Equine Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 26.55. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08377's Degree of Operating Leverage is ranked worse than
93.89% of 1014 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.05 vs HKSE:08377: 26.55

Harbour Equine Holdings Degree of Operating Leverage Historical Data

The historical data trend for Harbour Equine 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.

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Harbour Equine Holdings Degree of Operating Leverage Chart

Harbour Equine 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 0.03 1.18 -5.99 -11.11 26.55

Harbour Equine 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 14.22 3.88 -11.11 0.01 26.55

Competitive Comparison of Harbour Equine Holdings's Degree of Operating Leverage

For the Textile Manufacturing subindustry, Harbour Equine 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.


Harbour Equine Holdings's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Harbour Equine Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Harbour Equine Holdings Degree of Operating Leverage Calculation

Harbour Equine 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
=( -33.919 (Dec. 2024) / -41.557 (Dec. 2023) - 1 )/( 68.581 (Dec. 2024) / 69.059 (Dec. 2023) - 1 )
=-0.1838/-0.0069
=26.55***

* 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.


Harbour Equine Holdings  (HKSE:08377) 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.


Harbour Equine Holdings Degree of Operating Leverage Related Terms

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


Harbour Equine Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 386 Zeng Nan Road, Zeng Jiao Cun, Fang Cun, Liwan District, Guangzhou, CHN
Harbour Equine Holdings Ltd is a textile manufacturing company. It is engaged in the manufacturing and selling of sewing threads and board categories of garment accessories, interior design and decoration, equine services and financial services. . It also offers other types of sewing threads, namely textured polyester series, elastic filament sewing threads, and weft yarn. Its segments are the manufacturing and selling of sewing threads, Interior design and decoration, Equine services, and Advising on securities, corporate finance, and asset management. It generates the majority of revenue from Hong Kong.
Executives
Three Gates Investment Limited 2101 Beneficial owner
Wong Kwok Wai Albert 2201 Interest of corporation controlled by you
Fung Wing Cheung Tony 2101 Beneficial owner
Gold-face Finance Limited 2106 Person having a security interest in shares
Upbest Group Limited 2201 Interest of corporation controlled by you

Harbour Equine Holdings Headlines

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