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Optima Automobile Group Holdings (HKSE:08418) Degree of Operating Leverage : -1.50 (As of Dec. 2024)


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What is Optima Automobile Group Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Optima Automobile Group Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -1.50. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08418's Degree of Operating Leverage is ranked better than
74.09% of 1285 companies
in the Vehicles & Parts industry
Industry Median: 1 vs HKSE:08418: -1.50

Optima Automobile Group Holdings Degree of Operating Leverage Historical Data

The historical data trend for Optima Automobile Group 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.

Optima Automobile Group Holdings Degree of Operating Leverage Chart

Optima Automobile Group Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -2.20 -0.59 47.26 0.53 -1.50

Optima Automobile Group 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 -0.15 -2.49 0.53 0.28 -1.50

Competitive Comparison of Optima Automobile Group Holdings's Degree of Operating Leverage

For the Auto Parts subindustry, Optima Automobile Group 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.


Optima Automobile Group Holdings's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Optima Automobile Group Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Optima Automobile Group Holdings's Degree of Operating Leverage falls into.


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Optima Automobile Group Holdings Degree of Operating Leverage Calculation

Optima Automobile Group 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
=( -6.159 (Dec. 2024) / -4.854 (Dec. 2023) - 1 )/( 505.634 (Dec. 2024) / 615.978 (Dec. 2023) - 1 )
=0.2689/-0.1791
=-1.50***

* 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.


Optima Automobile Group Holdings  (HKSE:08418) 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.


Optima Automobile Group Holdings Degree of Operating Leverage Related Terms

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Optima Automobile Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
159 Sin Ming Road, No. 04-05 Amtech Building, Singapore, SGP, 575625
Optima Automobile Group Holdings Ltd is a one-stop after-market automotive service provider in Singapore. The Group is principally engaged in the provision of a comprehensive range of after-market automotive services, with a focus on inspection, maintenance, and repair services; offering short-term and long-term car rental services; supplying passenger car spare parts, accessories, and automotive equipment to customers in Singapore and overseas countries and automobiles to customers in China; The Group operates in four segments which include After-market automotive services, Car rental services, Automotive supply business, and Education business. The majority of revenue is derived from the Automotive supply business.
Executives
Ang Lay Keong (hong Liqiang) 2201 Interest of corporation controlled by you
Lim Fang Fang, Queenie (lin Fangfang, Queenie) 2201 Interest of corporation controlled by you
Lim Li Ling (lin Liling) 2202 Interest of your spouse
Ng Chee Keen 2202 Interest of your spouse
Red Link International Limited 2101 Beneficial owner
Hu Wuan 2101 Beneficial owner
Chee Siew Wee 2101 Beneficial owner
Chong Soo Hoon, Sean 2101 Beneficial owner

Optima Automobile Group Holdings Headlines

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