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3SBio, (FRA:YFK) Degree of Financial Leverage : 0.00 (As of Dec. 2016)


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What is 3SBio, 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). 3SBio,'s Degree of Financial Leverage for the quarter that ended in Dec. 2016 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for 3SBio,'s Degree of Financial Leverage or its related term are showing as below:

FRA:YFK's Degree of Financial Leverage is not ranked *
in the Biotechnology industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Financial Leverage only.

3SBio, Degree of Financial Leverage Historical Data

The historical data trend for 3SBio,'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.

3SBio, Degree of Financial Leverage Chart

3SBio, Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec14 Dec15 Dec16
Degree of Financial Leverage
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3SBio, Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
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Competitive Comparison of 3SBio,'s Degree of Financial Leverage

For the Biotechnology subindustry, 3SBio,'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.


3SBio,'s Degree of Financial Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, 3SBio,'s Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where 3SBio,'s Degree of Financial Leverage falls into.



3SBio, Degree of Financial Leverage Calculation

3SBio,'s Degree of Financial Leverage for the quarter that ended in Dec. 2016 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0 (Dec. 2016) / 0 (Dec. 2015) - 1 )/( 136.694 (Dec. 2016) / 87.457 (Dec. 2015) - 1 )
=/0.563
=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.


3SBio,  (FRA:YFK) 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.


3SBio, Degree of Financial Leverage Related Terms

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3SBio, (FRA:YFK) Business Description

Industry
Traded in Other Exchanges
N/A
Address
3SBio Inc is engaged in the healthcare sector based in China. It is a pharmaceutical products company and its core activities pertain to developing, manufacturing and marketing biopharmaceuticals. Its portfolio of products comprises of TPIAO and Yisaipu. TPIAO is the only commercialized recombinant human thrombopoietin (rhTPO) product in the world and Yisaipu is a TNF inhibibator product and accounts for the major share in the pharmaceutical industry in China. Most of the company's activities are focused on China while having a minor footprint in a foreign land.

3SBio, (FRA:YFK) Headlines

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