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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Zhejiang Hangke Technologyorporated Co's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 11.47. The higher Degree of Operating Leverage, the higher operating risk the company will take.
XSWX:ZHT's Degree of Operating Leverage is ranked worse than 87.29% of 2983
companies
in the Industrial Products industry
Industry Median: 1.06
vs XSWX:ZHT: 11.47
Zhejiang Hangke Technologyorporated Co (XSWX:ZHT) 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.
Zhejiang Hangke Technologyorporated Co Degree of Operating Leverage Related Terms
Zhejiang Hangke Technologyorporated Co Degree of Operating Leverage Historical Data
* 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.
Zhejiang Hangke Technologyorporated Co Degree of Operating Leverage Chart
Zhejiang Hangke Technologyorporated Co Annual Data
XSWX:ZHT vs GEV, ETN, PH: Degree of Operating Leverage Comparison
For the Specialty Industrial Machinery subindustry, Zhejiang Hangke Technologyorporated 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.
Zhejiang Hangke Technologyorporated Co Degree of Operating Leverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zhejiang Hangke Technologyorporated Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Zhejiang Hangke Technologyorporated Co's Degree of Operating Leverage falls into.
* 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 11.47 mean?
Zhejiang Hangke Technologyorporated Co (XSWX:ZHT) has a Degree of Operating Leverage of 11.47 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Zhejiang Hangke Technologyorporated Co and its competitors. According to the industry distribution chart, Zhejiang Hangke Technologyorporated Co ranks #2604 out of 2983 companies in the Industrial Products industry, placing it in the top 87.3%.
Is Zhejiang Hangke Technologyorporated Co's Degree of Operating Leverage too high?
Zhejiang Hangke Technologyorporated Co's current Degree of Operating Leverage is 11.47. The Industrial Products industry median Degree of Operating Leverage is 1.06. Zhejiang Hangke Technologyorporated Co's value of 11.47 is 982.1% above this industry median. Based on the distribution chart, Zhejiang Hangke Technologyorporated Co ranks #2604 out of 2983 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Zhejiang Hangke Technologyorporated Co has a GF Score™ of 93/100, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Hangke Technologyorporated Co's Degree of Operating Leverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Zhejiang Hangke Technologyorporated Co ranks #2604 out of 2983 companies for Degree of Operating Leverage. This places Zhejiang Hangke Technologyorporated Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.06. Zhejiang Hangke Technologyorporated Co's value of 11.47 is 982.1% 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 Industrial Products company?
The median Degree of Operating Leverage among Industrial Products companies is 1.06, based on 2,983 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. Zhejiang Hangke Technologyorporated Co's current Degree of Operating Leverage of 11.47 is 982.1% 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 Zhejiang Hangke Technologyorporated Co and its competitors. For the Industrial Products industry, the median Degree of Operating Leverage is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Hangke Technologyorporated Co's current Degree of Operating Leverage is 11.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Hangke Technologyorporated Co stock overvalued right now?
Zhejiang Hangke Technologyorporated Co (XSWX:ZHT) has a current Degree of Operating Leverage of 11.47. The stock's GF Value™ is $10.72, compared to a current price of $9.80 — trading 8.6% below its estimated fair value. The current Degree of Operating Leverage is 11.47 and 982.1% above the Industrial Products industry median of 1.06. Zhejiang Hangke Technologyorporated Co's overall GF Score™ is 93/100 with 7 warning signs to review. 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 Zhejiang Hangke Technologyorporated Co (XSWX:ZHT), the current Degree of Operating Leverage is 11.47 as of Mar. 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.
Is Zhejiang Hangke Technologyorporated Co (XSWX:ZHT) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Hangke Technologyorporated Co stock appears to be undervalued.
The current stock price of $9.80 is trading 8.6% below its estimated GF Value™ of $10.72.
Key valuation signals for XSWX:ZHT:
Degree of Operating Leverage: 11.47
GF Value™: $10.72 vs. price of $9.80 (8.6% below fair value)
Industry Position: 982.1% above the Industrial Products median (#2604 of 2983)
No single metric tells the full story. See the XSWX:ZHT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Hangke Technology Incorporated Co is engaged in the design, development, production and sales of various types of cies, especially lithium ion battery production line aftertreatment systems.
93GF Score
Get the complete analysis for XSWX:ZHT
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