GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » CK Hutchison Holdings Ltd (OTCPK:CKHUF) » Definitions » Degree of Operating Leverage

CKHUF (CK Hutchison Holdings) Degree of Operating Leverage : -2.41 (As of Jun. 2024)


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

What is CK Hutchison Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CK Hutchison Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -2.41. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for CK Hutchison Holdings's Degree of Operating Leverage or its related term are showing as below:

CKHUF's Degree of Operating Leverage is ranked better than
76.86% of 510 companies
in the Conglomerates industry
Industry Median: 1.11 vs CKHUF: -2.41

CK Hutchison Holdings Degree of Operating Leverage Historical Data

The historical data trend for CK Hutchison Holdings'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.

CK Hutchison Holdings Degree of Operating Leverage Chart

CK Hutchison Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.78 2.12 0.24 -2.29 -5.20

CK Hutchison Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 1.70 -2.29 1.08 -5.20 -2.41

Competitive Comparison of CK Hutchison Holdings's Degree of Operating Leverage

For the Conglomerates subindustry, CK Hutchison Holdings'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.


CK Hutchison Holdings's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, CK Hutchison Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where CK Hutchison Holdings's Degree of Operating Leverage falls into.



CK Hutchison Holdings Degree of Operating Leverage Calculation

CK Hutchison Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 5910.321 (Jun. 2024) / 6790.249 (Jun. 2023) - 1 )/( 35678.956 (Jun. 2024) / 33871.797 (Jun. 2023) - 1 )
=-0.1296/0.0534
=-2.43***

* 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.


CK Hutchison Holdings  (OTCPK:CKHUF) 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.


CK Hutchison Holdings Degree of Operating Leverage Related Terms

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


CK Hutchison Holdings Business Description

Traded in Other Exchanges
Address
2 Queen’s Road Central, 48th Floor, Cheung Kong Center, Hong Kong, HKG
CK Hutchison Holdings, or CKH, is a Hong Kong headquartered conglomerate with key businesses in ports, retail, infrastructure, and telecommunications. The company was created in 2015 to house the merged assets of Cheung Kong Holdings and Hutchison Whampoa as the group sought to flatten out and simplify its original holding structure. CKH contains most of the businesses previously housed in Hutchison Whampoa, minus the property assets, which were spun off into their own listing, CK Asset Holdings. Telecommunications and infrastructure activities now make up the largest share of EBITDA, at around 53%.

CK Hutchison Holdings Headlines

From GuruFocus

Longleaf Partners Comments on CK Hutchison

By Holly LaFon Holly LaFon 01-24-2017

Longleaf Partners Comments on CK Hutchison

By Sydnee Gatewood Sydnee Gatewood 01-19-2021

Southeastern Asset Management Comments on CK Hutchison

By Holly LaFon Holly LaFon 10-14-2016

Mason Hawkins Comments on Cheung Kong

By Vera Yuan Vera Yuan 02-11-2015

Southeastern Asset Management Comments on CK Hutchison

By Holly LaFon Holly LaFon 04-14-2016