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Shareate Tools (SHSE:688257) Degree of Operating Leverage : 0.66 (As of Mar. 2025)


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What is Shareate Tools Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Shareate Tools's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SHSE:688257's Degree of Operating Leverage is ranked better than
58.58% of 2926 companies
in the Industrial Products industry
Industry Median: 1.1 vs SHSE:688257: 0.66

Shareate Tools Degree of Operating Leverage Historical Data

The historical data trend for Shareate Tools'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.

Shareate Tools Degree of Operating Leverage Chart

Shareate Tools 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 - 0.71 0.21 0.63 0.74

Shareate Tools 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 0.70 0.62 0.28 0.74 0.66

Competitive Comparison of Shareate Tools's Degree of Operating Leverage

For the Tools & Accessories subindustry, Shareate Tools'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.


Shareate Tools's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shareate Tools's Degree of Operating Leverage distribution charts can be found below:

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


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Shareate Tools Degree of Operating Leverage Calculation

Shareate Tools'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
=( 275.613 (Mar. 2025) / 233.957 (Mar. 2024) - 1 )/( 1995.719 (Mar. 2025) / 1571.585 (Mar. 2024) - 1 )
=0.178/0.2699
=0.66***

* 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.


Shareate Tools  (SHSE:688257) 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.


Shareate Tools Degree of Operating Leverage Related Terms

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


Shareate Tools Business Description

Traded in Other Exchanges
N/A
Address
133 Shuangma Street, Weiting Town, Suzhou Industrial Park, Jiangsu Province, Suzhou, CHN, 215121
Shareate Tools Ltd is a national high-tech enterprise, engaged in cemented carbide products and rock drilling tools. Its main products are Rotary Tricone Bit, DTH Hammer & Bit for mining, water well, and oil-field drilling applications, oil drilling, and mining cemented carbide, carbide substrates for PDC bits, petroleum drill bit nozzle, ultra-fine cemented carbide rod, fine grain cutting tools, stamping die plate, cold heading dies, powder metallurgy dies, tungsten carbide tubular welding, wear parts, non-standard parts. It exports to South America, Africa, Australia, Russia, South Korea, the USA, Canada and other countries.
Executives
Yu Li Xin Core technical personnel
Yang Han Min Core technical personnel
Li Ning Core technical personnel
senior management
Lu Qing Zhong Core technical personnel
Liu Yong senior management
Zhang Yong Qiang Supervisors
Rao Xiang senior management
Wu He Hong Directors, senior managers
Xue You Gang Supervisors
Yuan Ai Directors, senior managers
Liu Guo Zhu Directors, senior managers

Shareate Tools Headlines

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