GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Dadi Education Holdings Ltd (HKSE:08417) » Definitions » Degree of Operating Leverage

Dadi Education Holdings (HKSE:08417) Degree of Operating Leverage : 2.27 (As of Sep. 2024)


View and export this data going back to 2017. Start your Free Trial

What is Dadi Education Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Dadi Education Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 2.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08417's Degree of Operating Leverage is ranked worse than
68.29% of 246 companies
in the Education industry
Industry Median: 0.86 vs HKSE:08417: 2.27

Dadi Education Holdings Degree of Operating Leverage Historical Data

The historical data trend for Dadi Education 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.

Dadi Education Holdings Degree of Operating Leverage Chart

Dadi Education Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.84 12.36 -34.45 -136.59 -26.60

Dadi Education Holdings Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24
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 7.09 10.00 -11.38 -26.60 2.27

Competitive Comparison of Dadi Education Holdings's Degree of Operating Leverage

For the Education & Training Services subindustry, Dadi Education 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.


Dadi Education Holdings's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Dadi Education Holdings's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Dadi Education Holdings Degree of Operating Leverage Calculation

Dadi Education Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.503 (Sep. 2024) / -5.943 (Sep. 2023) - 1 )/( 9.38 (Sep. 2024) / 15.728 (Sep. 2023) - 1 )
=-0.9154/-0.4036
=2.27***

* 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.


Dadi Education Holdings  (HKSE:08417) 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.


Dadi Education Holdings Degree of Operating Leverage Related Terms

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


Dadi Education Holdings Business Description

Traded in Other Exchanges
N/A
Address
7th Floor, 700 Nathan Road, Units Nos. 702 and 703, Mong Kok, Kowloon, Hong Kong, HKG
Dadi Education Holdings Ltd provides overseas studies consultancy services. The company offers secondary education and higher education studies to students in the United Kingdom, Australia, and Canada. The firm delivers consultancy services including study locations, academic requirements of study programs, applications for the study programs and accommodation and travelling arrangements among others. It geographically operates in Australia, Canada, New Zealand, United States, United Kingdom and Others.
Executives
Song Wen Xia 2101 Beneficial owner
Grand Courage Investments Limited 2101 Beneficial owner
Chung Wang Lung 2101 Beneficial owner
Yin Xiao Pei 2101 Beneficial owner
Leng Lisa Chunying 2101 Beneficial owner
Zeming Pty Limited 2101 Beneficial owner

Dadi Education Holdings Headlines

No Headlines