GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Changshu Tongrun Auto Accessory Co Ltd (SHSE:603201) » Definitions » Degree of Operating Leverage

Changshu Tongrun Auto Accessory Co (SHSE:603201) Degree of Operating Leverage : 1.82 (As of Mar. 2025)


View and export this data going back to 2022. Start your Free Trial

What is Changshu Tongrun Auto Accessory Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Changshu Tongrun Auto Accessory Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SHSE:603201's Degree of Operating Leverage is ranked worse than
60.47% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.02 vs SHSE:603201: 1.82

Changshu Tongrun Auto Accessory Co Degree of Operating Leverage Historical Data

The historical data trend for Changshu Tongrun Auto Accessory 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.

Changshu Tongrun Auto Accessory Co Degree of Operating Leverage Chart

Changshu Tongrun Auto Accessory Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial - - -2.55 -47.49 1.82

Changshu Tongrun Auto Accessory Co Quarterly Data
Dec18 Dec19 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 3.99 2.99 18.85 1.82 1.82

Competitive Comparison of Changshu Tongrun Auto Accessory Co's Degree of Operating Leverage

For the Auto Parts subindustry, Changshu Tongrun Auto Accessory 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.


Changshu Tongrun Auto Accessory Co's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Changshu Tongrun Auto Accessory Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Changshu Tongrun Auto Accessory Co's Degree of Operating Leverage falls into.


;
;

Changshu Tongrun Auto Accessory Co Degree of Operating Leverage Calculation

Changshu Tongrun Auto Accessory 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
=( 352.957 (Mar. 2025) / 304.482 (Mar. 2024) - 1 )/( 3023.919 (Mar. 2025) / 2781.097 (Mar. 2024) - 1 )
=0.1592/0.0873
=1.82***

* 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.


Changshu Tongrun Auto Accessory Co  (SHSE:603201) 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.


Changshu Tongrun Auto Accessory Co Degree of Operating Leverage Related Terms

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


Changshu Tongrun Auto Accessory Co Business Description

Traded in Other Exchanges
N/A
Address
Xinlongteng Industrial Park, Economic Development Zone, Jiangsu Province, Changshu, CHN
Changshu Tongrun Auto Accessory Co Ltd is engaged in the research and development, manufacturing and sales of various jacks and their extended products. The company's main products include commercial jacks, vehicle-mounted jacks, professional jacks, lifts and other automotive maintenance equipment and tools.
Executives
Shi Xiao Ming Director
Li Xue Jun senior management
Zhou Ke Shu senior management
Shen Min senior management
Lu Li Hua Director
Yao Sheng Director
Directors, senior managers
Zhu Wei Directors, senior managers
Wang Xiong Ping Directors, senior managers
Chen Jiang Directors, senior managers
Lu Xin Jun Director

Changshu Tongrun Auto Accessory Co Headlines

No Headlines