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Hangzhou Wensli Silk Culture Co (SZSE:301066) Degree of Operating Leverage : 3.83 (As of Mar. 2025)


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What is Hangzhou Wensli Silk Culture Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hangzhou Wensli Silk Culture Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Hangzhou Wensli Silk Culture Co's Degree of Operating Leverage or its related term are showing as below:

SZSE:301066's Degree of Operating Leverage is ranked worse than
71.17% of 1013 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.05 vs SZSE:301066: 3.83

Hangzhou Wensli Silk Culture Co Degree of Operating Leverage Historical Data

The historical data trend for Hangzhou Wensli Silk Culture 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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Hangzhou Wensli Silk Culture Co Degree of Operating Leverage Chart

Hangzhou Wensli Silk Culture Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -87.62 5.18 6.25 -26.12 0.23

Hangzhou Wensli Silk Culture 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 -69.98 39.59 89.95 0.23 3.83

Competitive Comparison of Hangzhou Wensli Silk Culture Co's Degree of Operating Leverage

For the Textile Manufacturing subindustry, Hangzhou Wensli Silk Culture 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.


Hangzhou Wensli Silk Culture Co's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hangzhou Wensli Silk Culture Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Hangzhou Wensli Silk Culture Co's Degree of Operating Leverage falls into.


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Hangzhou Wensli Silk Culture Co Degree of Operating Leverage Calculation

Hangzhou Wensli Silk Culture 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
=( 35.721 (Mar. 2025) / 44.175 (Mar. 2024) - 1 )/( 683.786 (Mar. 2025) / 719.789 (Mar. 2024) - 1 )
=-0.1914/-0.05
=3.83***

* 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.


Hangzhou Wensli Silk Culture Co  (SZSE:301066) 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.


Hangzhou Wensli Silk Culture Co Degree of Operating Leverage Related Terms

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Hangzhou Wensli Silk Culture Co Business Description

Traded in Other Exchanges
N/A
Address
No. 68 Tiancheng Road, Room 501, 5th Floor, Building 2, Wanshili Technology Building, Zhejiang Province, Hangzhou, CHN, 310021
Hangzhou Wensli Silk Culture Co Ltd is engaged in the research and development, design, production, and sales of silk related products. It develops high-end silk ornament and silk artworks based on traditional silk fabrics and silk garments. The company's main products can be divided into silk cultural and creative products (own terminal brands) and silk textile products (non-own terminal brands). The silk cultural and creative products with the Wanshili own brand as the core mainly include silk scarves, combination sets, home textiles, branded clothing, scarves, and silk crafts; and the silk textile products provided to women's clothing brands include silk fabrics, OEM clothing, and the digital printing processing services provided to customers by the company.

Hangzhou Wensli Silk Culture Co Headlines

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