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Wuliangye Yibin Co (SZSE:000858) Degree of Operating Leverage : 0.56 (As of Mar. 2025)


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What is Wuliangye Yibin Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Wuliangye Yibin Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SZSE:000858's Degree of Operating Leverage is ranked better than
61.06% of 208 companies
in the Beverages - Alcoholic industry
Industry Median: 1.365 vs SZSE:000858: 0.56

Wuliangye Yibin Co Degree of Operating Leverage Historical Data

The historical data trend for Wuliangye Yibin 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.

Wuliangye Yibin Co Degree of Operating Leverage Chart

Wuliangye Yibin 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 0.63 1.32 1.22 1.02 0.77

Wuliangye Yibin 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 0.95 0.94 0.96 0.77 0.56

Competitive Comparison of Wuliangye Yibin Co's Degree of Operating Leverage

For the Beverages - Wineries & Distilleries subindustry, Wuliangye Yibin 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.


Wuliangye Yibin Co's Degree of Operating Leverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Wuliangye Yibin Co's Degree of Operating Leverage distribution charts can be found below:

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


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Wuliangye Yibin Co Degree of Operating Leverage Calculation

Wuliangye Yibin 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
=( 45177.385 (Mar. 2025) / 43960.233 (Mar. 2024) - 1 )/( 91282.628 (Mar. 2025) / 86966.112 (Mar. 2024) - 1 )
=0.0277/0.0496
=0.56***

* 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.


Wuliangye Yibin Co  (SZSE:000858) 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.


Wuliangye Yibin Co Degree of Operating Leverage Related Terms

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Wuliangye Yibin Co Business Description

Traded in Other Exchanges
N/A
Address
No.150, Minjiang West Road, Cuiping District, Sichuan Province, Yibin, CHN, 644007
Wuliangye Yibin is China's second-largest baijiu producer by revenue, with sales of CNY 89 billion in 2024 compared with CNY 171 billion for Moutai. Founded in the 1950s, Wuliangye is located in Yibin, Sichuan province, in southwest China. Its core product, 52-degree Wuliangye, is widely known as the best rice-flavored baijiu in the market. The high-quality products, extensive history and brand strength have led to strong pricing power, allowing the company to enjoy high retail prices and profit margins.
Executives
Liu Feng Supervisors
Wu Guo Ping Supervisors
Tang Bo Chao Executives
Peng Zhi Fu Directors, executives
Yang Yun Xia Supervisors
Zhang Li Shang Independent director
Ye Wei Quan Executives
Zhang Hui Director
Fu Nan Ping Independent director
Yu Ming Shu Supervisors
Chen Lin Directors, executives
Tang Sheng Yun Executives
Zhu Zhong Yu Executives
Liu Zhong Guo Director
Peng Shao Bing Director

Wuliangye Yibin Co Headlines

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