WDMSF (Wisdom Education International Holdings Co) Degree of Operating Leverage : 4.51 (As of Feb. 2026)

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What is Wisdom Education International Holdings Co Degree of Operating Leverage?

Wisdom Education International Holdings Co WDMSF Degree of Operating Leverage is 4.51 as of Feb. 2026. The stock has 6 warning signs investors should review. Among 244 Education companies, Wisdom Education International Holdings Co ranks worse than 74.59% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Wisdom Education International Holdings Co's Degree of Operating Leverage for the quarter that ended in Feb. 2026 was 4.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Wisdom Education International Holdings Co's Degree of Operating Leverage or its related term are showing as below:

WDMSF's Degree of Operating Leverage is ranked worse than
74.59% of 244 companies
in the Education industry
Industry Median: 1.105 vs WDMSF: 4.51

Wisdom Education International Holdings Co  (OTCPK:WDMSF) 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.


Wisdom Education International Holdings Co Degree of Operating Leverage Related Terms


Wisdom Education International Holdings Co Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Wisdom Education International Holdings 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.

Wisdom Education International Holdings Co Degree of Operating Leverage Chart

Wisdom Education International Holdings Co Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.65 1.21 5.93 0.93 1.81

Wisdom Education International Holdings Co Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 -15.89 0.93 0.92 1.81 4.51

WDMSF vs EDU, TAL, LAUR: Degree of Operating Leverage Comparison

For the Education & Training Services subindustry, Wisdom Education International Holdings 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.


Wisdom Education International Holdings Co Degree of Operating Leverage vs Education Industry

For the Education industry and Consumer Defensive sector, Wisdom Education International Holdings Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Wisdom Education International Holdings Co's Degree of Operating Leverage falls into.



Wisdom Education International Holdings Co Degree of Operating Leverage Calculation

Wisdom Education International Holdings Co's Degree of Operating Leverage for the quarter that ended in Feb. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 5.309 (Feb. 2026) / 16.609 (Feb. 2025) - 1 )/( 20.103 (Feb. 2026) / 23.757 (Feb. 2025) - 1 )
=-0.6804/-0.1538
=4.42***

* 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.

What does a Degree of Operating Leverage of 4.51 mean?
Wisdom Education International Holdings Co (WDMSF) has a Degree of Operating Leverage of 4.51 as of Feb. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Wisdom Education International Holdings Co and its competitors. According to the industry distribution chart, Wisdom Education International Holdings Co ranks #182 out of 244 companies in the Education industry, placing it in the top 74.6%.
Is Wisdom Education International Holdings Co's Degree of Operating Leverage too high?
Wisdom Education International Holdings Co's current Degree of Operating Leverage is 4.51. The Education industry median Degree of Operating Leverage is 1.11. Wisdom Education International Holdings Co's value of 4.51 is 308.1% above this industry median. Based on the distribution chart, Wisdom Education International Holdings Co ranks #182 out of 244 companies in the Education industry, which is below the industry midpoint.
How does Wisdom Education International Holdings Co's Degree of Operating Leverage compare to EDU and TAL?
According to the Education industry distribution chart, Wisdom Education International Holdings Co ranks #182 out of 244 companies for Degree of Operating Leverage. This places Wisdom Education International Holdings Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.11. Wisdom Education International Holdings Co's value of 4.51 is 308.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Education company?
The median Degree of Operating Leverage among Education companies is 1.11, based on 244 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wisdom Education International Holdings Co's current Degree of Operating Leverage of 4.51 is 308.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Wisdom Education International Holdings Co and its competitors. For the Education industry, the median Degree of Operating Leverage is 1.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wisdom Education International Holdings Co's current Degree of Operating Leverage is 4.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wisdom Education International Holdings Co stock overvalued right now?
Wisdom Education International Holdings Co (WDMSF) has a current Degree of Operating Leverage of 4.51. The stock's GF Value™ is $0.02, compared to a current price of $0.01 — trading 50% below its estimated fair value. The current Degree of Operating Leverage is 4.51 and 308.1% above the Education industry median of 1.11. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Wisdom Education International Holdings Co (WDMSF), the current Degree of Operating Leverage is 4.51 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Wisdom Education International Holdings Co Business Description

Other Exchanges 06068:Hong Kong5Q4:Germany
Address No. 68 Guangming Da Dao, Dongcheng District, Dongguan, CHN
Wisdom Education International Holdings Co Ltd is a private education group operating premium primary and secondary schools in China. Its service line includes School-related supply chain business and comprehensive educational services out of which it generates the majority of its revenue from the School-related supply chain business. Geographically it generates key revenue from the Mainland, PRC.