GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Hanwei Electronics Group Corp (SZSE:300007) » Definitions » Degree of Operating Leverage

Hanwei Electronics Group (SZSE:300007) Degree of Operating Leverage : 15.86 (As of Mar. 2025)


View and export this data going back to 2009. Start your Free Trial

What is Hanwei Electronics Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hanwei Electronics Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 15.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Hanwei Electronics Group's Degree of Operating Leverage or its related term are showing as below:

SZSE:300007's Degree of Operating Leverage is ranked worse than
90.72% of 2414 companies
in the Hardware industry
Industry Median: 1 vs SZSE:300007: 15.86

Hanwei Electronics Group Degree of Operating Leverage Historical Data

The historical data trend for Hanwei Electronics Group'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.

Hanwei Electronics Group Degree of Operating Leverage Chart

Hanwei Electronics Group 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 80.08 1.37 -4.28 11.01 16.39

Hanwei Electronics Group 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 10.10 -910.47 -6.04 16.39 15.86

Competitive Comparison of Hanwei Electronics Group's Degree of Operating Leverage

For the Scientific & Technical Instruments subindustry, Hanwei Electronics Group'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.


Hanwei Electronics Group's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Hanwei Electronics Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Hanwei Electronics Group's Degree of Operating Leverage falls into.


;
;

Hanwei Electronics Group Degree of Operating Leverage Calculation

Hanwei Electronics Group'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
=( 110.767 (Mar. 2025) / 187.798 (Mar. 2024) - 1 )/( 2236.78 (Mar. 2025) / 2296.151 (Mar. 2024) - 1 )
=-0.4102/-0.0259
=15.86***

* 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.


Hanwei Electronics Group  (SZSE:300007) 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.


Hanwei Electronics Group Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Hanwei Electronics Group's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Hanwei Electronics Group Business Description

Traded in Other Exchanges
N/A
Address
No. 169 Xuesong Road, National High-Tech zone, Zhengzhou, CHN, 450001
Hanwei Electronics Group Corp is engaged in the manufacturing of gas sensors and instruments in China. The product offered by the company includes Gas Alarm, Portable Gas Detector, Fixed Gas Detector, Alcohol Tester, Smoke alarm and others. The products are widely used in petroleum, chemical, metallurgy, environmental protection, mining, electronics, food, medical health, agriculture, gas, municipal engineering, home security and health, public areas, traffic safety management, sewage treatment, biological sciences, aerospace, military, anti-terrorism and other fields. Geographically the activities are carried out through China.
Executives
Shang Zhong Feng Directors, executives
Li Zhi Gang Directors, executives
Yang Chang Zai Director
Zhou Zhen Supervisors
Ren Hong Jun Director
Liu Rui Ling Directors, executives
Zhang Yan Li Supervisors
Zhang Xiao Jun Directors, executives
Li Hang Securities Affairs Representative
Shang Jian Hong Executives
Zhang Xiao Shui Directors, executives
Xiao Feng Directors, executives, securities affairs represen
Jiao Gui Dong Directors, executives
Zhong Chao Director
Jiang Hui Chang Director

Hanwei Electronics Group Headlines

No Headlines