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CapitaLand China Trust (SGX:AU8U) Degree of Operating Leverage : 5.23 (As of Dec. 2024)


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What is CapitaLand China Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CapitaLand China Trust's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 5.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for CapitaLand China Trust's Degree of Operating Leverage or its related term are showing as below:

SGX:AU8U's Degree of Operating Leverage is ranked worse than
75.47% of 742 companies
in the REITs industry
Industry Median: 1.195 vs SGX:AU8U: 5.23

CapitaLand China Trust Degree of Operating Leverage Historical Data

The historical data trend for CapitaLand China Trust'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.

CapitaLand China Trust Degree of Operating Leverage Chart

CapitaLand China Trust 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 6.81 3.70 24.86 6.04 5.23

CapitaLand China Trust Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 24.86 -3.75 6.04 8.14 5.23

Competitive Comparison of CapitaLand China Trust's Degree of Operating Leverage

For the REIT - Retail subindustry, CapitaLand China Trust'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.


CapitaLand China Trust's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, CapitaLand China Trust's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where CapitaLand China Trust's Degree of Operating Leverage falls into.


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CapitaLand China Trust Degree of Operating Leverage Calculation

CapitaLand China Trust'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
=( 145.356 (Dec. 2024) / 217.932 (Dec. 2023) - 1 )/( 341.529 (Dec. 2024) / 364.746 (Dec. 2023) - 1 )
=-0.333/-0.0637
=5.23***

* 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.


CapitaLand China Trust  (SGX:AU8U) 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.


CapitaLand China Trust Degree of Operating Leverage Related Terms

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CapitaLand China Trust Business Description

Industry
Traded in Other Exchanges
Address
168 Robinson Road, No. 30-01 Capital Tower, Singapore, SGP, 068912
CapitaLand China Trust is a Singapore-based real estate investment trust which invests in retail properties. The company's portfolio consists predominantly of shopping malls located in multiple cities in mainland China, Hong Kong, SAR, and Macau. The company generates revenue from leasing properties to its tenants. Fashion and accessories stores, dining venues, and department stores collectively contribute the majority of total rental revenue. Other tenants include supermarkets, beauty and healthcare retailers, homeware and furniture stores, and leisure venues. The operating segments are Retail Malls, Business Parks, and Logistics Parks. The majority of revenue is generated from Retail Malls segment.

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