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Anhui Zhongding Sealing Parts Co (SZSE:000887) Degree of Operating Leverage : 1.28 (As of Mar. 2025)


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What is Anhui Zhongding Sealing Parts Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Anhui Zhongding Sealing Parts Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.28. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Anhui Zhongding Sealing Parts Co's Degree of Operating Leverage or its related term are showing as below:

SZSE:000887's Degree of Operating Leverage is ranked worse than
54.03% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.02 vs SZSE:000887: 1.28

Anhui Zhongding Sealing Parts Co Degree of Operating Leverage Historical Data

The historical data trend for Anhui Zhongding Sealing Parts 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.

Anhui Zhongding Sealing Parts Co Degree of Operating Leverage Chart

Anhui Zhongding Sealing Parts 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 7.65 5.87 -0.47 2.01 1.29

Anhui Zhongding Sealing Parts 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 2.28 2.87 3.83 1.29 1.28

Competitive Comparison of Anhui Zhongding Sealing Parts Co's Degree of Operating Leverage

For the Auto Parts subindustry, Anhui Zhongding Sealing Parts 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.


Anhui Zhongding Sealing Parts Co's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Anhui Zhongding Sealing Parts Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Anhui Zhongding Sealing Parts Co's Degree of Operating Leverage falls into.


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Anhui Zhongding Sealing Parts Co Degree of Operating Leverage Calculation

Anhui Zhongding Sealing Parts 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
=( 1849.262 (Mar. 2025) / 1734.151 (Mar. 2024) - 1 )/( 19016.024 (Mar. 2025) / 18077.246 (Mar. 2024) - 1 )
=0.0664/0.0519
=1.28***

* 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.


Anhui Zhongding Sealing Parts Co  (SZSE:000887) 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.


Anhui Zhongding Sealing Parts Co Degree of Operating Leverage Related Terms

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Anhui Zhongding Sealing Parts Co Business Description

Traded in Other Exchanges
N/A
Address
Economic and Technological Development Zone, Anhui, Ningguo, CHN, 242300
Anhui Zhongding Sealing Parts Co Ltd focuses primarily on industrial and automotive parts production. The company's portfolio includes a wide range of industries, from rubber and plastic products manufacturing to machinery and mold manufacturing, automotive tools, information technology, environmental protection materials, eco-friendly engines and various high-quality industrial products. Some of Zhongding Group's key products include Dinghu rubber seals and special rubber products, which are widely used and trusted in the automotive, construction machinery, petrochemical processing, office automation, railway, and shipping industries.
Executives
Gao Sheng Qing Executives
Pan Jin Jun Supervisors
Yi Shan Bing Executives
Fang Bing Hu Executives
Liang Chun Fang Supervisors
Xia Ying Song Directors, executives
He Shi Sheng Executives
Jiang Wei Jian Secretary Dong
Hu Xiao Ping Supervisors
Yan Jiang Wei Directors, executives
Xia Ding Hu Director
Chen Xing Hua Executives
Zhu Ming Yuan Executives
Zhu Bao Ning Executives
He Shu Lin Executives

Anhui Zhongding Sealing Parts Co Headlines

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