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Xinxiang Chemical Fibre Co (SZSE:000949) Degree of Operating Leverage : -25.04 (As of Mar. 2025)


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What is Xinxiang Chemical Fibre Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Xinxiang Chemical Fibre Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -25.04. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SZSE:000949's Degree of Operating Leverage is ranked better than
92.68% of 1011 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.04 vs SZSE:000949: -25.04

Xinxiang Chemical Fibre Co Degree of Operating Leverage Historical Data

The historical data trend for Xinxiang Chemical Fibre 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.

Xinxiang Chemical Fibre Co Degree of Operating Leverage Chart

Xinxiang Chemical Fibre 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 1.97 6.73 7.07 -92.07 -899.50

Xinxiang Chemical Fibre 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 -17.68 -10.69 -118.65 -899.50 -25.04

Competitive Comparison of Xinxiang Chemical Fibre Co's Degree of Operating Leverage

For the Textile Manufacturing subindustry, Xinxiang Chemical Fibre 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.


Xinxiang Chemical Fibre Co's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Xinxiang Chemical Fibre Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Xinxiang Chemical Fibre Co's Degree of Operating Leverage falls into.


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Xinxiang Chemical Fibre Co Degree of Operating Leverage Calculation

Xinxiang Chemical Fibre 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
=( 355.956 (Mar. 2025) / 202.698 (Mar. 2024) - 1 )/( 7279.306 (Mar. 2025) / 7505.939 (Mar. 2024) - 1 )
=0.7561/-0.0302
=-25.04***

* 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.


Xinxiang Chemical Fibre Co  (SZSE:000949) 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.


Xinxiang Chemical Fibre Co Degree of Operating Leverage Related Terms

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Xinxiang Chemical Fibre Co Business Description

Traded in Other Exchanges
N/A
Address
South side of Xinchang Road, Economic and Technological Development Zone, Henan, Xinxiang, CHN, 453006
Xinxiang Chemical Fibre Co Ltd is engaged in chemical fiber manufacturing. The company is mainly engaged in the production and sales of chemical fibers, and its main products include biomass cellulose filament and spandex fiber. Biomass cellulose filament is a regenerated fiber, which is made of cotton pulp, wood pulp meal, or other natural fibers as raw materials. Spandex is a polyurethane elastic fiber with excellent elasticity, corrosion resistance, heat resistance, and tear resistance. The company generates the majority of its revenue from the sale of spandex fiber.
Executives
Zhu Xue Xin Supervisors
Chen Xi An Executives
Lu Wei Executives
Zhang Jia Qi Directors, executives
Wang Wen Xin Director
Shao Zhang Jin Director
Ji Yu Dong Directors, executives
Feng Li Ping Executives
Yue Sheng Li Director
Zhou Xue Li Executives
Song De Shun Executives
Cao Jun You Executives
Xiao Shu Bin Director
Zhou Jian Hua Supervisors
Jia Bao Liang Directors, executives

Xinxiang Chemical Fibre Co Headlines

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