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Foshan Haitian Flavouring and Food Co (SHSE:603288) Degree of Operating Leverage : 1.49 (As of Mar. 2025)


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What is Foshan Haitian Flavouring and Food Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Foshan Haitian Flavouring and Food Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Foshan Haitian Flavouring and Food Co's Degree of Operating Leverage or its related term are showing as below:

SHSE:603288's Degree of Operating Leverage is ranked worse than
55.32% of 1842 companies
in the Consumer Packaged Goods industry
Industry Median: 1.03 vs SHSE:603288: 1.49

Foshan Haitian Flavouring and Food Co Degree of Operating Leverage Historical Data

The historical data trend for Foshan Haitian Flavouring and Food 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.

Foshan Haitian Flavouring and Food Co Degree of Operating Leverage Chart

Foshan Haitian Flavouring and Food 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 1.32 0.24 -2.42 2.07 1.23

Foshan Haitian Flavouring and Food 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 9.09 0.35 0.76 1.23 1.49

Competitive Comparison of Foshan Haitian Flavouring and Food Co's Degree of Operating Leverage

For the Packaged Foods subindustry, Foshan Haitian Flavouring and Food 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.


Foshan Haitian Flavouring and Food Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Foshan Haitian Flavouring and Food Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Foshan Haitian Flavouring and Food Co's Degree of Operating Leverage falls into.


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Foshan Haitian Flavouring and Food Co Degree of Operating Leverage Calculation

Foshan Haitian Flavouring and Food 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
=( 7883.753 (Mar. 2025) / 6961.153 (Mar. 2024) - 1 )/( 27522.529 (Mar. 2025) / 25272.178 (Mar. 2024) - 1 )
=0.1325/0.089
=1.49***

* 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.


Foshan Haitian Flavouring and Food Co  (SHSE:603288) 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.


Foshan Haitian Flavouring and Food Co Degree of Operating Leverage Related Terms

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Foshan Haitian Flavouring and Food Co Business Description

Traded in Other Exchanges
N/A
Address
16 Wensha Road Foshan, Guangdong, CHN, 528000
Foshan Haitian Flavouring and Food was founded in 1955 through the consolidation of 25 condiment producers in Foshan, Guangdong province of China. The company mainly manufactures soy sauces, oyster sauces, dipping sauces, and seasoning sauces. It is the leading condiment producer with number-one market share in soy sauces and oyster sauces in China.
Executives
He Tao Supervisors
Wen Zhi Zhou Director
Chen Min Supervisors
Zhang Xin senior management
Chen Jun Yang Director
Huang Wen Biao senior management
Huang Shu Liang Supervisors
Guan Jiang Hua Director
Pang Kang Director
Cheng Xue Director
Liao Zhang Hui Director
Tong Xing Supervisors
He Ting Wei Director
Wu Zhen Xing senior management
Zhang Yong Le senior management

Foshan Haitian Flavouring and Food Co Headlines

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