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I-MAB (IMAB) Degree of Financial Leverage : 1.01 (As of Dec. 2023)


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What is I-MAB 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). I-MAB's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.01. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for I-MAB's Degree of Financial Leverage or its related term are showing as below:

IMAB's Degree of Financial Leverage is ranked worse than
55.2% of 1500 companies
in the Biotechnology industry
Industry Median: 0.96 vs IMAB: 1.01

I-MAB Degree of Financial Leverage Historical Data

The historical data trend for I-MAB'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.

I-MAB Degree of Financial Leverage Chart

I-MAB Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial 0.67 0.95 0.94 5.02 1.01

I-MAB Semi-Annual Data
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 0.94 0.12 5.02 1.07 1.01

Competitive Comparison of I-MAB's Degree of Financial Leverage

For the Biotechnology subindustry, I-MAB'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.


I-MAB's Degree of Financial Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, I-MAB's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where I-MAB's Degree of Financial Leverage falls into.



I-MAB Degree of Financial Leverage Calculation

I-MAB'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
=( -2.467 (Dec. 2023) / -4.358 (Dec. 2022) - 1 )/( -205.172 (Dec. 2023) / -359.541 (Dec. 2022) - 1 )
=-0.4339/-0.4294
=1.01***

* 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.


I-MAB  (NAS:IMAB) 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.


I-MAB Degree of Financial Leverage Related Terms

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I-MAB (IMAB) Business Description

Industry
Traded in Other Exchanges
Address
555 West Haiyang Road, 55th Floor, New Bund Center, Pudong District, Shanghai, CHN, 200124
I-Mab Biopharma is a clinical-stage biotech company in China that listed on Nasdaq in January 2020. Its first commercial drug will likely be eftansomatropin, a long-acting growth hormone that has a large market in China among pediatric patients with short stature, which we estimate will launch in 2024 or 2025. Other core assets include lemzoparlimab, a potential best-in-class CD47 inhibitor in phase 2 trials; uliledlimab, a potential best-in-class CD73 inhibitor in phase 2 trials; and felzartamab for the Chinese market, a CD38 inhibitor for multiple myeloma, which could have a phase 3 data readout in 2023.