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NWCN (Network CN) Degree of Operating Leverage : -1.95 (As of Sep. 2024)


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What is Network CN Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Network CN's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -1.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NWCN's Degree of Operating Leverage is ranked better than
73.91% of 985 companies
in the Media - Diversified industry
Industry Median: 1.21 vs NWCN: -1.95

Network CN Degree of Operating Leverage Historical Data

The historical data trend for Network CN'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.

Network CN Degree of Operating Leverage Chart

Network CN Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 0.48

Network CN Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 0.04 0.48 4.86 -1.94 -1.95

Competitive Comparison of Network CN's Degree of Operating Leverage

For the Advertising Agencies subindustry, Network CN'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.


Network CN's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Network CN's Degree of Operating Leverage distribution charts can be found below:

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


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Network CN Degree of Operating Leverage Calculation

Network CN's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.839 (Sep. 2024) / -1.609 (Sep. 2023) - 1 )/( 0.574 (Sep. 2024) / 0.461 (Sep. 2023) - 1 )
=-0.4786/0.2451
=-1.95***

* 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.


Network CN  (OTCPK:NWCN) 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.


Network CN Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Network CN's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Network CN Business Description

Traded in Other Exchanges
N/A
Address
Unit 705B, 9 Science Museum Road, New East Ocean Centre, 7th Floor, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
Network CN Inc is a media and advertising company. The company is engaged in the provision of out-of-home advertising services in China. Its suite of services ranges from media planning to advertising operations such as a network of roadside light-emitting diode (LED) digital video panels, mega-size LED digital video billboards, and lightboxes in many cities. Its revenues consist of income from out-of-home advertising panels. The company generates the majority of its revenue from the United States.
Executives
Frederick Wong director C/O 21/F, ONE HARBOUR SQUARE, 181 HOI BUN RD, KWUN TONG, HONG KONG F4 00000
Wing Kong Wong director C/O 21/F, ONE HARBOUR SQUARE, 181 HOI BUN RD, KWUN TONG, HONG KONG F4 00000
Cheng Sze Ki Shirley director, officer: Chief Financial Officer C/O 21/F, ONE HARBOUR SQUARE, 181 HOI BUN RD, KWUN TONG, HONG KONG F4 00000
Charles Liu director C/O NO. SUITE 3908, SHELL TOWER, TIMES SQUARE, 1 MATHESON STREET, CAUSEWAY BAY, HK K3 00000
Serge Choukroun director C/O STE 3908, SHELL TOWER, TIMES SQUARE, 1 MATHESON STREET, CAUSEWAY BAY, HONG KONG K3 00000
Sino Portfolio International Ltd 10 percent owner 3104 -7, 31/F, CENTRAL PLAZA, 18 HARBOUR ROAD, HONG KONG K3 00000
Chen Yang Foo Oi 10 percent owner 3104 -7, 31/F, CENTRAL PLAZA, 18 HARBOUR ROAD, HONG KONG K3 00000
Jennifer Fu officer: Interim CFO 21/F., CHINACHEM CENTURY TOWER, 178 GLOUCESTER ROAD, WANCHAI K3 00000
Gerald Godfrey director 21/F., CHINACHEM CENTURY TOWER,, 178 GLOUCESTER ROAD, WANCHAI K3 00000
Ronald Lee director C/O NO. 21/F., CHINACHEM CENTURY TOWER, 178 GLOUCESTER ROAD, WANCHAI K3 00000
Chi Wah Leung director FLAT 2B, OLYMPAIN MANSION, 9 CONDUIT ROAD, MID-LEVEL K3 00000
Keywin Holdings Ltd 10 percent owner RM902, 9/FL., UNIVERSAL TRADE CENTRE,, 3 ARBUTHNOT ROAD, CENTRAL K3 00000
Tang Pui Chu 10 percent owner FLAT 2B,OLYMPAIN MANSION, 9 CONDUIT ROAD, MID-LEVEL K3 00000
Gerd Jakob director 21/F CHINACHEM CENTURY TOWER, 178 GLOUCESTER ROAD, HONG KONG F4 0000000
Ronglie Xu director 1-1-301, HOUSING YARD, MINISTRY OF CONSTRUCTION, BEIJING F4 100037

Network CN Headlines