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KTK Group Co (SHSE:603680) Degree of Operating Leverage : 3.49 (As of Mar. 2025)


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What is KTK Group Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. KTK Group Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SHSE:603680's Degree of Operating Leverage is ranked worse than
78.83% of 978 companies
in the Transportation industry
Industry Median: 0.87 vs SHSE:603680: 3.49

KTK Group Co Degree of Operating Leverage Historical Data

The historical data trend for KTK Group 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.

KTK Group Co Degree of Operating Leverage Chart

KTK Group 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 1.89 10.22 6.56 10.55 2.58

KTK Group 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 4.82 3.08 3.44 2.58 3.49

Competitive Comparison of KTK Group Co's Degree of Operating Leverage

For the Railroads subindustry, KTK Group 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.


KTK Group Co's Degree of Operating Leverage Distribution in the Transportation Industry

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

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


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KTK Group Co Degree of Operating Leverage Calculation

KTK Group 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
=( 650.636 (Mar. 2025) / 357.459 (Mar. 2024) - 1 )/( 4695.97 (Mar. 2025) / 3801.781 (Mar. 2024) - 1 )
=0.8202/0.2352
=3.49***

* 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.


KTK Group Co  (SHSE:603680) 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.


KTK Group Co Degree of Operating Leverage Related Terms

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KTK Group Co Business Description

Traded in Other Exchanges
N/A
Address
No.88-89, Jinchuang Road, Yaoguan Town, Wujin District, Jiangsu Province, Changzhou, CHN, 213000
KTK Group Co Ltd is engaged in research and development, production, sales and service of rail transit vehicle accessory products. The company's products are mainly divided into rail transport vehicles interior, electrical and equipment products, covering more than a thousand subdivision products such as door system, seat, and kitchen. Further, it is also engaged in the manufacturing of auxiliary electrical systems, information display systems, coupler systems, brake systems, shock absorption systems and other ancillary products. The company primarily serves global rail transit equipment giants such as China CRRC, Bombardier, Alstom, and Siemens, as well as Chinese urban rail metro customers.
Executives
Ge Yao Hong Directors, senior managers
Sun Chao senior management
Cao Zhang Bao senior management
Li Jun Directors, senior managers
Jin Yan Directors, senior managers
Wang Hong Bin senior management
Zou Chun Zhong senior management
Zhang Huai Bin senior management
Wang Yi Jin senior management
Zuo Xiao Peng senior management
Du Yan Director
Luo Yi Directors, senior managers
Yu Jin Kun Directors, senior managers
Zhang Cun Gang Supervisors
Qian Bo Supervisors

KTK Group Co Headlines

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