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C Banner International Holdings (HKSE:01028) Degree of Financial Leverage : 0.10 (As of Dec. 2023)


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What is C Banner International Holdings Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). C Banner International Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.10. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for C Banner International Holdings's Degree of Financial Leverage or its related term are showing as below:

HKSE:01028's Degree of Financial Leverage is ranked better than
80.49% of 1066 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 0.99 vs HKSE:01028: 0.10

C Banner International Holdings Degree of Financial Leverage Historical Data

The historical data trend for C Banner International Holdings'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.

* Premium members only.

C Banner International Holdings Degree of Financial Leverage Chart

C Banner International Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.79 1.72 0.76 0.10

C Banner International Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Degree of Financial 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 1.72 0.95 0.76 0.58 0.10

Competitive Comparison of C Banner International Holdings's Degree of Financial Leverage

For the Footwear & Accessories subindustry, C Banner International Holdings'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.


C Banner International Holdings's Degree of Financial Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, C Banner International Holdings's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where C Banner International Holdings's Degree of Financial Leverage falls into.



C Banner International Holdings Degree of Financial Leverage Calculation

C Banner International Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.011 (Dec. 2023) / 0.008 (Dec. 2022) - 1 )/( 107.326 (Dec. 2023) / 22.211 (Dec. 2022) - 1 )
=0.375/3.8321
=0.10***

* 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.


C Banner International Holdings  (HKSE:01028) 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.


C Banner International Holdings Degree of Financial Leverage Related Terms

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


C Banner International Holdings (HKSE:01028) Business Description

Traded in Other Exchanges
N/A
Address
18 Harcourt Road, Suite 1503, Level 15, Admiralty Centre Tower 1, Admiralty, Hong Kong, HKG
C Banner International Holdings Ltd is a footwear retailer in China that sells mid-to-premium women's formal and casual footwear. Most of the company's revenue comes from its Retail and Wholesale of Shoe segment. The company generates revenue in that segment by selling self-developed and licensed footwear brands through department stores, independent retail stores, and online. Brands include C.banner, Eblan, Sundance, Mio, Natursun, Badgley Mischka, and United Nude. Other segments include Contract Manufacturing of Footwear, where C Banner manufactures shoes for export for international companies, and Retail of Toys, where the company sells through Hamleys toy stores. Most of the company's sales are generated in China.
Executives
Orchid Valley Holdings Limited 2101 Beneficial owner
Cheng Xuanxuan 2201 Interest of corporation controlled by you
Hongguo International Group Limited
Chen Yixi
Port Bliss Holdings Limited
Leung Lok Hang 2201 Interest of corporation controlled by you
Oci International Holdings Limited 2201 Interest of corporation controlled by you
Jiang Jie 2201 Interest of corporation controlled by you
Hua Rong Hua Qiao Zi Chan Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Hua Rong Zi Chan Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
China Huarong International Holdings Limited 2101 Beneficial owner
Utah State Retirement Investment Fund 2201 Interest of corporation controlled by you
Utah Retirement Systems 2201 Interest of corporation controlled by you
Eight Dragons Investments Limited 2106 Person having a security interest in shares
Arch Capital Group Ltd 2201 Interest of corporation controlled by you

C Banner International Holdings (HKSE:01028) Headlines

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