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Trony Solar Holdings Co (STU:6TO) Degree of Operating Leverage : 0.00 (As of Dec. 2017)


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What is Trony Solar Holdings Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Trony Solar Holdings Co's Degree of Operating Leverage for the quarter that ended in Dec. 2017 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:6TO's Degree of Operating Leverage is not ranked *
in the Semiconductors industry.
Industry Median: 0.98
* Ranked among companies with meaningful Degree of Operating Leverage only.

Trony Solar Holdings Co Degree of Operating Leverage Historical Data

The historical data trend for Trony Solar Holdings 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.

Trony Solar Holdings Co Degree of Operating Leverage Chart

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Trony Solar Holdings Co Semi-Annual Data
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Competitive Comparison of Trony Solar Holdings Co's Degree of Operating Leverage

For the Semiconductors subindustry, Trony Solar Holdings 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.


Trony Solar Holdings Co's Degree of Operating Leverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Trony Solar Holdings Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Trony Solar Holdings Co's Degree of Operating Leverage falls into.


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Trony Solar Holdings Co Degree of Operating Leverage Calculation

Trony Solar Holdings Co's Degree of Operating Leverage for the quarter that ended in Dec. 2017 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -7.089 (Dec. 2017) / -8.887 (Dec. 2016) - 1 )/( 3.912 (Dec. 2017) / 6.304 (Dec. 2016) - 1 )
=-0.2023/-0.3794
=0.53***

* 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.


Trony Solar Holdings Co  (STU:6TO) 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.


Trony Solar Holdings Co Degree of Operating Leverage Related Terms

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Trony Solar Holdings Co Business Description

Traded in Other Exchanges
N/A
Address
Keyuan Road, Middle District of Science Park, Room 1403, Building A4, Kexing Science Park, Nanshan District, Shenzhen, CHN, 518048
Trony Solar Holdings Co Ltd is engaged in the manufacture of semiconductors and related devices. It is also involved in the manufacture and sale of solar products. The company operates its business through two segments: The Manufacture and Sale of Solar Products segment and Construction of Photovoltaic Cells segment. The company products include standard modules, integrated kits, building integrated photovoltaics, and embedded modules. The Manufacture and Sale of Solar Products segment contribute majorly towards firm's revenue. Most of the firm's revenue gets derived from China.

Trony Solar Holdings Co Headlines

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