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Daiseki Co (Daiseki Co) Degree of Financial Leverage : 0.64 (As of Feb. 2024)


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What is Daiseki Co 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). Daiseki Co's Degree of Financial Leverage for the quarter that ended in Feb. 2024 was 0.64. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Daiseki Co's Degree of Financial Leverage or its related term are showing as below:

DSKIF's Degree of Financial Leverage is ranked better than
70.82% of 233 companies
in the Waste Management industry
Industry Median: 1.03 vs DSKIF: 0.64

Daiseki Co Degree of Financial Leverage Historical Data

The historical data trend for Daiseki 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.

* Premium members only.

Daiseki Co Degree of Financial Leverage Chart

Daiseki Co 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 0.98 1.03 0.99 -31.16 0.64

Daiseki Co 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 -31.16 1.38 0.76 0.69 0.64

Competitive Comparison of Daiseki Co's Degree of Financial Leverage

For the Waste Management subindustry, Daiseki 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.


Daiseki Co's Degree of Financial Leverage Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Daiseki Co's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Daiseki Co's Degree of Financial Leverage falls into.



Daiseki Co Degree of Financial Leverage Calculation

Daiseki Co'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
=( 1.29 (Feb. 2024) / 1.309 (Feb. 2023) - 1 )/( 101.721 (Feb. 2024) / 97.831 (Feb. 2023) - 1 )
=-0.0145/0.0398
=-0.37***

* 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.


Daiseki Co  (OTCPK:DSKIF) 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.


Daiseki Co Degree of Financial Leverage Related Terms

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Daiseki Co (Daiseki Co) Business Description

Traded in Other Exchanges
Address
1-86 Funami-cho Minato-ku, Aichi, Nagoya, JPN, 4558505
Daiseki Co Ltd provides industrial waste treatment and resource recycling throughout Japan. Its core business activities are treating waste oil, waste water, and sludge. It collects and recycles oils and waste water from clients and processes the waste into heavy oil or supplemental fuel. Separators and filters remove deteriorated components, and other systems either refine or adjust products into reusable form. Final products are either delivered back to clients or shipped to market. Advanced technology partners with experienced employees to analyze and classify the particular waste to determine the correct solution; methods revolve around dehydration, kneading, and a combination of mixing and chemical treatment.

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