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Huafang Co (SHSE:600448) Degree of Operating Leverage : -10.17 (As of Mar. 2025)


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What is Huafang Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Huafang Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -10.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SHSE:600448's Degree of Operating Leverage is ranked better than
86.65% of 1011 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.05 vs SHSE:600448: -10.17

Huafang Co Degree of Operating Leverage Historical Data

The historical data trend for Huafang Co'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.

Huafang Co Degree of Operating Leverage Chart

Huafang Co 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 0.43 -8.98 42.90 40.51 -15.41

Huafang Co 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 72.94 135.92 250.23 -15.41 -10.17

Competitive Comparison of Huafang Co's Degree of Operating Leverage

For the Textile Manufacturing subindustry, Huafang Co'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.


Huafang Co's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Huafang Co's Degree of Operating Leverage distribution charts can be found below:

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


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Huafang Co Degree of Operating Leverage Calculation

Huafang Co'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
=( 21.382 (Mar. 2025) / 84.877 (Mar. 2024) - 1 )/( 3030.244 (Mar. 2025) / 2822.525 (Mar. 2024) - 1 )
=-0.7481/0.0736
=-10.17***

* 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.


Huafang Co  (SHSE:600448) 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.


Huafang Co Degree of Operating Leverage Related Terms

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Huafang Co Business Description

Traded in Other Exchanges
N/A
Address
No. 118, Donghai 1st Road, Shandong Province, Binzhou, CHN, 256602
Huafang Co Ltd is engaged in the production, distribution and export of fabrics, printed fabrics, textile fabrics, bedding, and dresses. The company provides textile products, fabric series, cloth series, bedding series, clothing line & among others.
Executives
Zhao Yu Zhong Director
Yan Ying Shan Director
Sheng Shou Xiang senior management
Wang Guo Dong Supervisors
Ju Li Yan senior management
Liu Shui Chao Director
Wang Li Min Director
Liu Lian Fei Supervisors
Chen Bao Jun Director
Li Feng Ming senior management
Bao Fang Ming Director
Luo Wei Xin senior management
Qin Hong Zhang Supervisors

Huafang Co Headlines

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