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Hunan Mendale Hometextile Co (SZSE:002397) Degree of Operating Leverage : -0.08 (As of Mar. 2025)


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What is Hunan Mendale Hometextile Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hunan Mendale Hometextile Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SZSE:002397's Degree of Operating Leverage is ranked better than
64.59% of 1011 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.08 vs SZSE:002397: -0.08

Hunan Mendale Hometextile Co Degree of Operating Leverage Historical Data

The historical data trend for Hunan Mendale Hometextile 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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Hunan Mendale Hometextile Co Degree of Operating Leverage Chart

Hunan Mendale Hometextile 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 3.71 -28.57 -8.94 -19.20 0.29

Hunan Mendale Hometextile 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 -18.99 41.81 11.91 0.29 -0.08

Competitive Comparison of Hunan Mendale Hometextile Co's Degree of Operating Leverage

For the Textile Manufacturing subindustry, Hunan Mendale Hometextile 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.


Hunan Mendale Hometextile Co's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Hunan Mendale Hometextile Co's Degree of Operating Leverage falls into.


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Hunan Mendale Hometextile Co Degree of Operating Leverage Calculation

Hunan Mendale Hometextile 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
=( 59.531 (Mar. 2025) / 58.524 (Mar. 2024) - 1 )/( 1636.301 (Mar. 2025) / 2102.649 (Mar. 2024) - 1 )
=0.0172/-0.2218
=-0.08***

* 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.


Hunan Mendale Hometextile Co  (SZSE:002397) 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.


Hunan Mendale Hometextile Co Degree of Operating Leverage Related Terms

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Hunan Mendale Hometextile Co Business Description

Traded in Other Exchanges
N/A
Address
No. 2 Changchuan Road, Lugu Industrial Base, New and High-Tech Industrial Development Zone, Changsha, Hunan, CHN, 410205
Hunan Mendale Hometextile Co Ltd is a China-based company. It is principally engaged in the design, manufacture, and sales of home textile products, as well as the provision of home life services.
Executives
Li Jun Secretary, Director
Jiang Tian Wu Director
Li Jian Wei Director
Wu Wei Director
Peng Wei Guo Supervisors
Zhang Ai Chun Director
Cheng Yan Executives
He Xiao Xia Executives
Tu Yun Hua Directors, executives
Guan Jian Independent director
Pan Jin Executives
Gao Zhi Supervisors
Wu Wen Wen Securities Affairs Representative
Chen Xiao Hong Director

Hunan Mendale Hometextile Co Headlines

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