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Agrana Beteiligungs AG (WBO:AGR) Degree of Financial Leverage : 4.04 (As of Feb. 2024)


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What is Agrana Beteiligungs AG 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). Agrana Beteiligungs AG's Degree of Financial Leverage for the quarter that ended in Feb. 2024 was 4.04. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Agrana Beteiligungs AG's Degree of Financial Leverage or its related term are showing as below:

WBO:AGR's Degree of Financial Leverage is ranked worse than
93.92% of 1841 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs WBO:AGR: 4.04

Agrana Beteiligungs AG Degree of Financial Leverage Historical Data

The historical data trend for Agrana Beteiligungs AG'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.

Agrana Beteiligungs AG Degree of Financial Leverage Chart

Agrana Beteiligungs AG Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.29 7.73 1.60 -0.64 4.04

Agrana Beteiligungs AG Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 -0.64 -0.80 2.26 2.32 4.04

Competitive Comparison of Agrana Beteiligungs AG's Degree of Financial Leverage

For the Packaged Foods subindustry, Agrana Beteiligungs AG'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.


Agrana Beteiligungs AG's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Agrana Beteiligungs AG's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Agrana Beteiligungs AG's Degree of Financial Leverage falls into.



Agrana Beteiligungs AG Degree of Financial Leverage Calculation

Agrana Beteiligungs AG's Degree of Financial Leverage for the quarter that ended in Feb. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.04 (Feb. 2024) / 0.25 (Feb. 2023) - 1 )/( 134.942 (Feb. 2024) / 75.678 (Feb. 2023) - 1 )
=3.16/0.7831
=4.04***

* 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.


Agrana Beteiligungs AG  (WBO:AGR) 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.


Agrana Beteiligungs AG Degree of Financial Leverage Related Terms

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


Agrana Beteiligungs AG (WBO:AGR) Business Description

Traded in Other Exchanges
Address
Friedrich-Wilhelm-Raiffeisen-Platz 1, Vienna, AUT, A-1020
Agrana Beteiligungs AG is a processor of raw materials that manufactures foods and intermediate products for the downstream food industry as well as for non-food applications. The company operates in three segments Sugar, Starch, and Fruit. The Sugar segment processes sugar beet from contract growers and also refines raw sugar purchased. The Starch segment processes and refines raw materials grown by contract farmers or purchased in the open market mainly corn, wheat, and potatoes into premium starch products. The Fruit segment, which is the key revenue driver, custom designs and produces fruit preparations and fruit juice concentrates. The company derives its revenue from Austria, Hungary, Romania and Rest of Europe.
Executives
Mag. Stephan Büttner Board of Directors