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Kinetix Systems Holdings (HKSE:08606) Degree of Operating Leverage : -7.16 (As of Dec. 2024)


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What is Kinetix Systems Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kinetix Systems Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -7.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:08606's Degree of Operating Leverage is ranked better than
86.3% of 2657 companies
in the Software industry
Industry Median: 0.78 vs HKSE:08606: -7.16

Kinetix Systems Holdings Degree of Operating Leverage Historical Data

The historical data trend for Kinetix Systems 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.

Kinetix Systems Holdings Degree of Operating Leverage Chart

Kinetix Systems 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 9.89 27.42 14.73 -15.43 -7.16

Kinetix Systems 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 47.75 -454.19 -15.43 1.97 -7.16

Competitive Comparison of Kinetix Systems Holdings's Degree of Operating Leverage

For the Information Technology Services subindustry, Kinetix Systems 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.


Kinetix Systems Holdings's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Kinetix Systems Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Kinetix Systems Holdings Degree of Operating Leverage Calculation

Kinetix Systems 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
=( -6.594 (Dec. 2024) / -16.831 (Dec. 2023) - 1 )/( 335.346 (Dec. 2024) / 309.075 (Dec. 2023) - 1 )
=-0.6082/0.085
=-7.16***

* 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.


Kinetix Systems Holdings  (HKSE:08606) 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.


Kinetix Systems Holdings Degree of Operating Leverage Related Terms

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Kinetix Systems Holdings Business Description

Traded in Other Exchanges
N/A
Address
165 Hoi Bun Road, 6th Floor, Upper Living, Kwun Tong, Kowloon, Hong Kong, HKG
Kinetix Systems Holdings Ltd is an Information Technology (IT) services provider. The company operates in three segments, which include the Provision of IT infrastructure solutions services, the Provision of IT development solutions services, and the Provision of IT maintenance and support services. The majority of its revenue comes from the IT infrastructure solutions services segment, which includes IT infrastructure, procurement of hardware and software, installation and testing & integration services, and system analysis & design, software development, and technology consultancy. Its geographical segments are Hong Kong, Macau, Singapore, and the United Kingdom, of which the vast majority of its revenue comes from Hong Kong.
Executives
Vigorous King Limited 2101 Beneficial owner
Tong Po Ki Vicky 2202 Interest of your spouse
Yu Larry 2201 Interest of corporation controlled by you
Lam Sze Chun Jackson 2101 Beneficial owner
Goldlink Hong Kong Investment Limited 2101 Beneficial owner
Rich Trend Hong Kong Investment Limited 2101 Beneficial owner
Leung Wan Hung 2202 Interest of your spouse
Yiu Wai Ki 2101 Beneficial owner

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