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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Hongchang International Co's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Hongchang International Co's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Hongchang International Co's Degree of Financial 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.
Hongchang International Co Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 0.10 | - | 1.24 | 0.61 | - |
Hongchang International Co Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Degree of Financial Leverage | Get a 7-Day Free Trial | - | 1.30 | 0.89 | - | - |
For the Packaged Foods subindustry, Hongchang International Co's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial 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.
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hongchang International Co's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Hongchang International Co's Degree of Financial Leverage falls into.
Hongchang International Co's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:
Degree of Financial Leverage | = | % Change in Earnings per Share (Diluted)** | / | % Change in EBIT |
= | ( -0.002 (Mar. 2024) / -0.002 (Mar. 2023) - 1 ) | / | ( -0.506 (Mar. 2024) / -0.303 (Mar. 2023) - 1 ) | |
= | 0 | / | 0.67 | |
= | 0.00*** |
* 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 EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial 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.
Hongchang International Co (OTCPK:HCIL) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Thank you for viewing the detailed overview of Hongchang International Co's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Ban Siong Ang | director, 10 percent owner | 1986, PERMATANG BERANGAN,, TASEK GELUGOR, PENANG N8 13300 |
Xingjia Gao | director | ROOM 1007, XIANGYUN BUILDING, NO.1400, BAIYUN AV., NORTH GUANGZHOU F4 510440 |
Zengqiang Lin | director, 10 percent owner, officer: CEO, President | 1008, BLOCK B, RONGSHANG BUILDING, FUQING CITY F4 350309 |
Zhenzhu Lin | director, 10 percent owner | 1008, BLOCK B, RONGSHANG BUILDING, FUQING CITY F4 350309 |
Hung Seng Tan | director | 38, LORONG SERI PETALING 1/1, TAMAN SERI PETALING, KULIM,KEDAM N8 09000 |
Daniel C Master | other: Former Pres, Direct, 10% owner | P O BOX 66, LA JOLLA CA 92038 |
Kwee Huwa Tan | director | NO 8-1F, JALAN GAMALAN INDAH 1, TAMAN GAMELAN INDAH, SINGAI BAKAP N8 14200 |
Wei Li | officer: Chief Financial Officer | 4TH FLOOR, NO. 10 BLDG, XINGLIN BAY, BUSINESS OPERATION CENTER, JIMEI DISTR., XIAMEN F4 00000 |
Derald M Miller | director | 230 WEST 400 SOUTH, 1ST FLOOR, SALT LAKE CITY UT 84101 |
K Lance Bell | director, officer: CEO, President | 230 WEST 400 SOUTH 1ST FLOOR, SALT LAKE CITY UT 84101 |
Tanner J Purser | officer: Secretary | 230 WEST 400 SOUTH, 1ST FLOOR, SALT LAKE CITY UT 84101 |
James C Roundy | director, officer: vice president | 230 WEST 400 SOUTH 1ST FLOOR, SALK LAKE CITY UT 84101 |
Robert Brett Bell | officer: Secretary | 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101 |
Allan E Oepping | other: Former director | 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101 |
Benjamin A Black | other: Former director | 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101 |
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