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Xikang Cloud Hospital Holdings (HKSE:09686) Degree of Operating Leverage : 5.49 (As of Dec. 2024)


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What is Xikang Cloud Hospital Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Xikang Cloud Hospital Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 5.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:09686's Degree of Operating Leverage is ranked worse than
80.59% of 639 companies
in the Healthcare Providers & Services industry
Industry Median: 0.52 vs HKSE:09686: 5.49

Xikang Cloud Hospital Holdings Degree of Operating Leverage Historical Data

The historical data trend for Xikang Cloud Hospital 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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Xikang Cloud Hospital Holdings Degree of Operating Leverage Chart

Xikang Cloud Hospital Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 2.56 -14.86 1.93 5.49

Xikang Cloud Hospital Holdings Semi-Annual Data
Dec20 Dec21 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial -14.86 - 1.93 - 5.49

Competitive Comparison of Xikang Cloud Hospital Holdings's Degree of Operating Leverage

For the Health Information Services subindustry, Xikang Cloud Hospital 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.


Xikang Cloud Hospital Holdings's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Xikang Cloud Hospital Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Xikang Cloud Hospital Holdings's Degree of Operating Leverage falls into.


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Xikang Cloud Hospital Holdings Degree of Operating Leverage Calculation

Xikang Cloud Hospital 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
=( -60.76 (Dec. 2024) / -119.608 (Dec. 2023) - 1 )/( 535.433 (Dec. 2024) / 588.141 (Dec. 2023) - 1 )
=-0.492/-0.0896
=5.49***

* 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.


Xikang Cloud Hospital Holdings  (HKSE:09686) 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.


Xikang Cloud Hospital Holdings Degree of Operating Leverage Related Terms

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Xikang Cloud Hospital Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 12 Huizheng Alley, No. 1-1, 1-2, 1-3, 1-4, 1-5, 2-1, Haishu District, Zhejiang Province, Ningbo, CHN
Xikang Cloud Hospital Holdings Inc, formerly Neusoft Xikang Holdings Inc developed China's first city-specific cloud hospital platform. The company facilitates the delivery of Internet medical services, including online hospital services, remote medical services, smart family doctor services and Internet home care services. The company also provides health management services and offers smart healthcare products. The company has three operating segments: Medical services; Nursing services; Health management services. It derives maximum revenue from Health management services.
Executives
Dalian Neusoft Holdings Co., Ltd. 2201 Interest of corporation controlled by you
Shenyang Kang Ruidao Consulting Co., Ltd. 2201 Interest of corporation controlled by you
Tianjin Zengdao Management Consultancy Center (limited Partnership) 2201 Interest of corporation controlled by you
Dalian Kang Ruidao Management Consulting Centre (limited Partnership) 2201 Interest of corporation controlled by you
Neusoft Corporation 2201 Interest of corporation controlled by you
Neusoft (hk) Limited 2101 Beneficial owner
Liu Jiren 2201 Interest of corporation controlled by you
Zhang Qiping 2201 Interest of corporation controlled by you
Hony Capital Fund V, L.p. 2201 Interest of corporation controlled by you
Su Zhou Tong Yu Tou Zi Guan Li He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Su Zhou Tong He Yu Cheng Tou Zi He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Su Zhou Fu Yan Chuang Ye Tou Zi Guan Li He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Su Zhou Tong He Er Qi Chuang Ye Tou Zi He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Su Zhou Yun Zhang Tou Zi Zi Xun You Xian Gong Si 2201 Interest of corporation controlled by you
Synergetic Innovation Fund Management Co., Ltd 2201 Interest of corporation controlled by you

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