GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ningbo Construction Co Ltd (SHSE:601789) » Definitions » Degree of Operating Leverage

Ningbo Construction Co (SHSE:601789) Degree of Operating Leverage : -1.00 (As of Mar. 2025)


View and export this data going back to 2011. Start your Free Trial

What is Ningbo Construction Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ningbo Construction Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SHSE:601789's Degree of Operating Leverage is ranked better than
76.15% of 1669 companies
in the Construction industry
Industry Median: 0.99 vs SHSE:601789: -1.00

Ningbo Construction Co Degree of Operating Leverage Historical Data

The historical data trend for Ningbo Construction 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.

Ningbo Construction Co Degree of Operating Leverage Chart

Ningbo Construction 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 -1.92 4.36 -3.56 -1.54 -1.35

Ningbo Construction 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 -1.26 -14.39 -0.68 -1.35 -1.00

Competitive Comparison of Ningbo Construction Co's Degree of Operating Leverage

For the Engineering & Construction subindustry, Ningbo Construction 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.


Ningbo Construction Co's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ningbo Construction Co's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Ningbo Construction Co Degree of Operating Leverage Calculation

Ningbo Construction 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
=( 625.12 (Mar. 2025) / 569.63 (Mar. 2024) - 1 )/( 20448.369 (Mar. 2025) / 22648.023 (Mar. 2024) - 1 )
=0.0974/-0.0971
=-1.00***

* 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.


Ningbo Construction Co  (SHSE:601789) 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.


Ningbo Construction Co Degree of Operating Leverage Related Terms

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


Ningbo Construction Co Business Description

Traded in Other Exchanges
N/A
Address
No.538, Ningtong Road, Yinzhou District, Ningbo, CHN, 315040
Ningbo Construction Co Ltd is a China-based construction company. It is engaged in the housing construction and general construction business. In addition, the company is also involved in the operation of civil engineering, engineering design, municipal garden, equipment installation and equipment leasing. Its business scope covers engineering survey, architectural design, housing construction and municipal general contracting, rail transit, mechanical and electrical equipment installation, decoration and decoration, steel structure, commercial concrete and prefabricated components. The business segments of the company are the Survey and design section, General contracting sector, and Industrial building sector.
Executives
Chen Xian Hua Director
Pan Xin Qiang Director
Chen Jian Guo Director
Li Zhang Chun senior management
Weng Hai Yong Director
Lu Xiang Kang Supervisors
Yu Wu Zheng Supervisors
Chen Bao Kang senior management
Wang Shan Bo Director
Meng Wen Hua Director
Xu Wen Wei Director
Huang Huan Jun senior management
Zhou Gang Xiang Supervisors
Li Shui Ming senior management

Ningbo Construction Co Headlines

No Headlines