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Chenqi Technology (HKSE:09680) Degree of Operating Leverage : -1.82 (As of Dec. 2024)


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What is Chenqi Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Chenqi Technology's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -1.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Chenqi Technology's Degree of Operating Leverage or its related term are showing as below:

HKSE:09680's Degree of Operating Leverage is ranked better than
76.9% of 1000 companies
in the Business Services industry
Industry Median: 0.95 vs HKSE:09680: -1.82

Chenqi Technology Degree of Operating Leverage Historical Data

The historical data trend for Chenqi Technology'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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Chenqi Technology Degree of Operating Leverage Chart

Chenqi Technology Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -0.72 0.15 -1.82

Chenqi Technology Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial -0.72 - 0.15 0.64 -1.82

Competitive Comparison of Chenqi Technology's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, Chenqi Technology'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.


Chenqi Technology's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Chenqi Technology's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Chenqi Technology's Degree of Operating Leverage falls into.


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Chenqi Technology Degree of Operating Leverage Calculation

Chenqi Technology'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
=( -600.472 (Dec. 2024) / -754.903 (Dec. 2023) - 1 )/( 2630.131 (Dec. 2024) / 2363.725 (Dec. 2023) - 1 )
=-0.2046/0.1127
=-1.82***

* 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.


Chenqi Technology  (HKSE:09680) 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.


Chenqi Technology Degree of Operating Leverage Related Terms

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Chenqi Technology Business Description

Traded in Other Exchanges
N/A
Address
Kaitai Avenue, No. 30-4, Huangpu District, Guangdong Province, Guangzhou, CHN
Chenqi Technology Ltd a mobility service company in China offering ride-hailing services. It serve and connect various participants of the mobility industry including the riders, drivers, automobile OEMs, vehicle service providers and autonomous driving solution providers, The company operates three reportable segments: Mobility services business, Technology services business and Fleet sale and maintenance business. Key revenue is generated from Mobility services business which includes provision of ride-hailing services, Robotaxi services, hitch services and other related services.
Executives
Tencent Holdings Limited
Tencent Mobility Limited
Guangzhou Automobile Industry Group Co., Ltd. 2201 Interest of corporation controlled by you
China Lounge Investments Limited 2101 Beneficial owner
Guangzhou Automobile Group Co., Ltd. 2201 Interest of corporation controlled by you
Didi Global Inc. 2201 Interest of corporation controlled by you
Hongkong Pony Ai Limited 2101 Beneficial owner
Peng Jun 2201 Interest of corporation controlled by you
Pony Ai Inc. 2201 Interest of corporation controlled by you

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