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Comba Telecom Systems Holdings (SGX:STC) Degree of Operating Leverage : 23.24 (As of Dec. 2024)


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What is Comba Telecom Systems Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Comba Telecom Systems Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 23.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Comba Telecom Systems Holdings's Degree of Operating Leverage or its related term are showing as below:

SGX:STC's Degree of Operating Leverage is ranked worse than
93.2% of 2413 companies
in the Hardware industry
Industry Median: 1 vs SGX:STC: 23.24

Comba Telecom Systems Holdings Degree of Operating Leverage Historical Data

The historical data trend for Comba Telecom Systems 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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Comba Telecom Systems Holdings Degree of Operating Leverage Chart

Comba Telecom Systems Holdings 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 14.91 12.90 -18.77 11.55 23.24

Comba Telecom Systems Holdings 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 -18.77 -236.50 11.55 6.74 23.24

Competitive Comparison of Comba Telecom Systems Holdings's Degree of Operating Leverage

For the Communication Equipment subindustry, Comba Telecom Systems 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.


Comba Telecom Systems Holdings's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Comba Telecom Systems Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Comba Telecom Systems Holdings's Degree of Operating Leverage falls into.


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Comba Telecom Systems Holdings Degree of Operating Leverage Calculation

Comba Telecom Systems 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
=( -88.155 (Dec. 2024) / 18.626 (Dec. 2023) - 1 )/( 786.653 (Dec. 2024) / 1020.332 (Dec. 2023) - 1 )
=-5.7329/-0.229
=25.03***

* 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.


Comba Telecom Systems Holdings  (SGX:STC) 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.


Comba Telecom Systems Holdings Degree of Operating Leverage Related Terms

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Comba Telecom Systems Holdings Business Description

Traded in Other Exchanges
Address
Hong Kong Science Park, Unit 611, Building 8W, Pak Shek Kok, New Territories, Hong Kong, HKG
Comba Telecom Systems Holdings Ltd is an investment holding company. The company operates in two segments: Wireless telecommunications network system equipment & services, and Operator telecommunication services. Its solutions include Antenna Site, In-Vehicle Broadband, Indoor Coverage Enhancement, Large Venue Coverage, LTE Upgrade, Railway/Tunnel Coverage, Wireless Backhaul, and Small Cell. It serves various industries such as airports, Education, Government and Public, Hospitality, stadiums, Transportation, and others. The company generates maximum revenue from the Wireless telecommunications network system equipment & services segment. Its geographical segments are Mainland China, Other countries/areas in the Asia Pacific, Americas, European Union, Middle East, and Other countries.