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ZKGCF (ZKGC New Energy) Degree of Operating Leverage : 0.00 (As of May. 2023)


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What is ZKGC New Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ZKGC New Energy's Degree of Operating Leverage for the quarter that ended in May. 2023 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for ZKGC New Energy's Degree of Operating Leverage or its related term are showing as below:

ZKGCF's Degree of Operating Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.33
* Ranked among companies with meaningful Degree of Operating Leverage only.

ZKGC New Energy Degree of Operating Leverage Historical Data

The historical data trend for ZKGC New Energy'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.

ZKGC New Energy Degree of Operating Leverage Chart

ZKGC New Energy Annual Data
Trend May21 May22 May23
Degree of Operating Leverage
- - 3.53

ZKGC New Energy Semi-Annual Data
May21 May22 May23
Degree of Operating Leverage - - 3.53

Competitive Comparison of ZKGC New Energy's Degree of Operating Leverage

For the Specialty Retail subindustry, ZKGC New Energy'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.


ZKGC New Energy's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, ZKGC New Energy's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where ZKGC New Energy's Degree of Operating Leverage falls into.


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ZKGC New Energy Degree of Operating Leverage Calculation

ZKGC New Energy's Degree of Operating Leverage for the quarter that ended in May. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.141 (May. 2023) / 0.069 (May. 2022) - 1 )/( 3.79 (May. 2023) / 2.926 (May. 2022) - 1 )
=1.0435/0.2953
=3.53***

* 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.


ZKGC New Energy  (OTCPK:ZKGCF) 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.


ZKGC New Energy Degree of Operating Leverage Related Terms

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


ZKGC New Energy Business Description

Traded in Other Exchanges
N/A
Address
12 Xinxiangdi Jiari, Laocheng Town, Hainan Province, Laocheng, CHN, 571924
Website
ZKGC New Energy Ltd provides management and operations consulting services.
Executives
Zhuowei Zhong 10 percent owner 5 JUMEI BIG STREET, XIAOLAN TOWN, ZHONGSHAN CITY, GUANGDONG PROVINCE F4 528415
Zhifei Huang director, officer: Chief Financial Officer 3 FIVE ALLEY, DITANGKOU, PINGWANGGANGXIE, DATANG TOWN, SANSHUI DISTRICT, FOSHAN, GUANGDONG PROVINCE F4 528143
Zhuowen Chen director, officer: Chief Executive Officer 401 BUILDING 23, JIANGPAN NEW RESIDENTIAL QUARTERS, ZHONGSHAN CITY, GUANGDONG PROV F4 528401
Zonghan Wu director, officer: Secretary 46 REEVES ROAD, PAKURANGA, AUCKLAND Q2 2140
Jinqi Liao 10 percent owner 12 XINXIANGDI JIARI, LAOCHENG TOWN, CHENGMAI COUNTY, HAINAN PROVINCE F4 571924

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