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Rainbow Digital Commercial Co (SZSE:002419) Degree of Operating Leverage : 12.07 (As of Mar. 2025)


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What is Rainbow Digital Commercial Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Rainbow Digital Commercial Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 12.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SZSE:002419's Degree of Operating Leverage is ranked worse than
85.31% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 1.32 vs SZSE:002419: 12.07

Rainbow Digital Commercial Co Degree of Operating Leverage Historical Data

The historical data trend for Rainbow Digital Commercial 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.

Rainbow Digital Commercial Co Degree of Operating Leverage Chart

Rainbow Digital Commercial 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 1.68 19.94 21.77 -30.92 17.59

Rainbow Digital Commercial 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 -382.43 11.33 12.71 17.59 12.07

Competitive Comparison of Rainbow Digital Commercial Co's Degree of Operating Leverage

For the Department Stores subindustry, Rainbow Digital Commercial 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.


Rainbow Digital Commercial Co's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rainbow Digital Commercial Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Rainbow Digital Commercial Co's Degree of Operating Leverage falls into.


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Rainbow Digital Commercial Co Degree of Operating Leverage Calculation

Rainbow Digital Commercial 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
=( 308.936 (Mar. 2025) / 461.169 (Mar. 2024) - 1 )/( 11713.249 (Mar. 2025) / 12042.506 (Mar. 2024) - 1 )
=-0.3301/-0.0273
=12.07***

* 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.


Rainbow Digital Commercial Co  (SZSE:002419) 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.


Rainbow Digital Commercial Co Degree of Operating Leverage Related Terms

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Rainbow Digital Commercial Co Business Description

Traded in Other Exchanges
N/A
Address
No. 3019, Central Road (Shenzhen Bay Section), 9th-14th Floor, 17th-20th Floor, Tianhong Building, Nanshan District, Guangdong Province, Shenzhen, CHN, 518026
Rainbow Digital Commercial Co Ltd operates a platform-based business with department stores, shopping malls and vertical business with supermarkets, convenience stores. It sells daily necessities, textiles, clothing, cosmetics, food, salt, beverages, health foods, agricultural and sideline products, household appliances and electronic products, culture, sports goods and equipment, building materials and chemical products.
Executives
Chen Zhi Xiang Supervisors
Jiang Yong Executives
Chen Yu Supervisors
Wu Jian Qiong Executives
Hou Yi Executives
Wan Ying Secretary Dong
Zhang Xu Hua Executives
Zheng Man Executives
Song Yao Ming Executives
Sun Jin Cheng Executives
Gao Shu Lin Directors, executives

Rainbow Digital Commercial Co Headlines

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