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FSPG Hi-Tech Co (SZSE:000973) Degree of Operating Leverage : -5.03 (As of Mar. 2025)


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What is FSPG Hi-Tech Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. FSPG Hi-Tech Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -5.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for FSPG Hi-Tech Co's Degree of Operating Leverage or its related term are showing as below:

SZSE:000973's Degree of Operating Leverage is ranked better than
82.46% of 1522 companies
in the Chemicals industry
Industry Median: 1.01 vs SZSE:000973: -5.03

FSPG Hi-Tech Co Degree of Operating Leverage Historical Data

The historical data trend for FSPG Hi-Tech 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.

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FSPG Hi-Tech Co Degree of Operating Leverage Chart

FSPG Hi-Tech 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 0.45 4.17 1.73 -1.40 -52.99

FSPG Hi-Tech 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 -1.48 -1.86 1.90 -52.99 -5.03

Competitive Comparison of FSPG Hi-Tech Co's Degree of Operating Leverage

For the Chemicals subindustry, FSPG Hi-Tech 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.


FSPG Hi-Tech Co's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, FSPG Hi-Tech Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where FSPG Hi-Tech Co's Degree of Operating Leverage falls into.


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FSPG Hi-Tech Co Degree of Operating Leverage Calculation

FSPG Hi-Tech 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
=( 188.007 (Mar. 2025) / 275.585 (Mar. 2024) - 1 )/( 2239.322 (Mar. 2025) / 2106.131 (Mar. 2024) - 1 )
=-0.3178/0.0632
=-5.03***

* 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.


FSPG Hi-Tech Co  (SZSE:000973) 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.


FSPG Hi-Tech Co Degree of Operating Leverage Related Terms

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FSPG Hi-Tech Co Business Description

Traded in Other Exchanges
N/A
Address
72 Fenjiang Zhong Road, Chancheng District, Foshan, CHN, 528000
FSPG Hi-Tech Co Ltd is a China-based company primarily engaged in the research and development, production and sale of new energy, new materials, energy saving technologies and environmental protection products. The company offers Packaging materials, such as BOPA, BOPP drinking straw and cigarette packaging materials, and laminated AL films; Electric and optical materials, such as BOPP capacitor and polarizer films; Construction materials comprising woven fabrics and PE-Xc pipes; Personal Healthcare & Clothing Material such as PE Casting Embossed Film and EasyTexTM and Advertisement & Labeling Material includes PVC Film For Graphics Use. Geographically the operations are carried out through China.
Executives
Huang Bing Di Directors, executives
Wang Lei Executives
Wang Yu Hong Supervisors
Xu Yong Director
Li Man Li Executives
Feng Zhao Zheng Director
Tao Luo Cheng Executives
Zhou Zhi Hui Executives
Liu Ya Jun Executives
Wu Yao Gen Director
Luo Han Jun Directors, executives
Lv Sen Executives

FSPG Hi-Tech Co Headlines

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