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KUASF (Kuaishou Technology) Degree of Operating Leverage : 1.88 (As of Mar. 2025)


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What is Kuaishou Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kuaishou Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.88. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KUASF's Degree of Operating Leverage is ranked worse than
59.96% of 547 companies
in the Interactive Media industry
Industry Median: 1.03 vs KUASF: 1.88

Kuaishou Technology Degree of Operating Leverage Historical Data

The historical data trend for Kuaishou 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.

* Premium members only.

Kuaishou Technology Degree of Operating Leverage Chart

Kuaishou Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 9.16 -0.14 6.14 1.86 3.17

Kuaishou Technology Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 6.64 13.52 -37.52 3.17 1.88

Competitive Comparison of Kuaishou Technology's Degree of Operating Leverage

For the Internet Content & Information subindustry, Kuaishou 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.


Kuaishou Technology's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Kuaishou Technology's Degree of Operating Leverage distribution charts can be found below:

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


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Kuaishou Technology Degree of Operating Leverage Calculation

Kuaishou Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2277.061 (Mar. 2025) / 675.879 (Mar. 2024) - 1 )/( 18027.227 (Mar. 2025) / 7957.697 (Mar. 2024) - 1 )
=2.369/1.2654
=1.87***

* 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.


Kuaishou Technology  (OTCPK:KUASF) 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.


Kuaishou Technology Degree of Operating Leverage Related Terms

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Kuaishou Technology Business Description

Traded in Other Exchanges
Address
No. 6, Xi’erqi West Road, Haidian District, Beijing, CHN, 100085
Kuaishou Technology is a social media platform on which users can share short-form videos that are up to 5 minutes long. The audience engages with the platform by looking at different videos on demand at any time, similar to TikTok. About 53% of revenue is generated from advertising, mainly in the form of targeted ads related to the video content - known as closed-loop ads-but also from outside unrelated brands. Kuaishou also generates livestream revenue by selling virtual gifts to fans that are donated to performers. It also has livestreaming e-commerce, where users purchase products related to the video, generating commission from each transaction. Kuaishou competes mainly with ByteDance's Douyin, as both are short-form video platforms. Tencent owns 19% of Kuaishou.