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Gree Electric Appliances of Zhuhai (SZSE:000651) Degree of Operating Leverage : -2.26 (As of Mar. 2025)


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What is Gree Electric Appliances of Zhuhai Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Gree Electric Appliances of Zhuhai's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Gree Electric Appliances of Zhuhai's Degree of Operating Leverage or its related term are showing as below:

SZSE:000651's Degree of Operating Leverage is ranked better than
77.3% of 423 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.23 vs SZSE:000651: -2.26

Gree Electric Appliances of Zhuhai Degree of Operating Leverage Historical Data

The historical data trend for Gree Electric Appliances of Zhuhai'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.

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Gree Electric Appliances of Zhuhai Degree of Operating Leverage Chart

Gree Electric Appliances of Zhuhai 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 0.69 0.17 46.23 2.44 -1.34

Gree Electric Appliances of Zhuhai 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 2.29 2.71 -31.99 -1.34 -2.26

Competitive Comparison of Gree Electric Appliances of Zhuhai's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Gree Electric Appliances of Zhuhai'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.


Gree Electric Appliances of Zhuhai's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Gree Electric Appliances of Zhuhai's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Gree Electric Appliances of Zhuhai's Degree of Operating Leverage falls into.


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Gree Electric Appliances of Zhuhai Degree of Operating Leverage Calculation

Gree Electric Appliances of Zhuhai'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
=( 40699.014 (Mar. 2025) / 36366.533 (Mar. 2024) - 1 )/( 195081.57 (Mar. 2025) / 205921.424 (Mar. 2024) - 1 )
=0.1191/-0.0526
=-2.26***

* 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.


Gree Electric Appliances of Zhuhai  (SZSE:000651) 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.


Gree Electric Appliances of Zhuhai Degree of Operating Leverage Related Terms

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Gree Electric Appliances of Zhuhai Business Description

Traded in Other Exchanges
N/A
Address
Jinji West Road, Qianshan, Guangdong Province, Zhuhai, CHN, 519070
Gree Electric Appliances is one of the largest heating, ventilating, and air conditioning, or HVAC, product manufacturers in China, with key products such as residential and commercial air conditioners. Gree generates over 80% of sales domestically and is backed by China's Zhuhai local government. Air conditioners remain the biggest contributor to Gree's earnings, with an over 70% representation over the years. The company has also made forays into industrial component parts, photovoltaic equipment, new energy vehicles, and battery production. As of March 2025, Chairwoman Dong Mingzhu and privately owned investment entity Zhuhai Mingjun collectively held 18% of its total equity interest, while state-owned Zhuhai Gree Group owned about 3.5%.
Executives
Deng Xiao Bo Secretary, Director
Duan Xiu Feng Supervisors
Zhang Wei Director
Tan Jian Ming Executives
Huang Hui Directors, executives
Zhang Jun Du Director
Xu Zi Fa Director
Dong Ming Zhu Directors, executives
Liu Jun Executives
Wang Jing Dong Directors, executives
Yang Yong Xing Securities Affairs Representative
Chen Wei Cai Executives
Wang Li Qin Supervisors
Meng Xiang Kai Director
Zhuang Pei Executives

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