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Aidigong Maternal & Child Health (HKSE:00286) Degree of Financial Leverage : -0.46 (As of Dec. 2023)


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What is Aidigong Maternal & Child Health 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). Aidigong Maternal & Child Health's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was -0.46. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Aidigong Maternal & Child Health's Degree of Financial Leverage or its related term are showing as below:

HKSE:00286's Degree of Financial Leverage is ranked better than
89.08% of 641 companies
in the Healthcare Providers & Services industry
Industry Median: 1.02 vs HKSE:00286: -0.46

Aidigong Maternal & Child Health Degree of Financial Leverage Historical Data

The historical data trend for Aidigong Maternal & Child Health'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.

Aidigong Maternal & Child Health Degree of Financial Leverage Chart

Aidigong Maternal & Child Health 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 9.87 3.88 0.72 15.95 -0.46

Aidigong Maternal & Child Health 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 0.72 0.78 15.95 -0.08 -0.46

Competitive Comparison of Aidigong Maternal & Child Health's Degree of Financial Leverage

For the Medical Care Facilities subindustry, Aidigong Maternal & Child Health'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.


Aidigong Maternal & Child Health's Degree of Financial Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Aidigong Maternal & Child Health's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Aidigong Maternal & Child Health's Degree of Financial Leverage falls into.



Aidigong Maternal & Child Health Degree of Financial Leverage Calculation

Aidigong Maternal & Child Health'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
=( -0.035 (Dec. 2023) / -0.033 (Dec. 2022) - 1 )/( -116.819 (Dec. 2023) / -134.71 (Dec. 2022) - 1 )
=0.0606/-0.1328
=-0.46***

* 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.


Aidigong Maternal & Child Health  (HKSE:00286) 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.


Aidigong Maternal & Child Health Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Aidigong Maternal & Child Health's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Aidigong Maternal & Child Health (HKSE:00286) Business Description

Traded in Other Exchanges
Address
1 Sheung Yuet Road, Unit E, 28th Floor, YHC Tower, Kowloon Bay, Kowloon, Hong Kong, HKG
Aidigong Maternal & Child Health Ltd is an investment holding company registered in Bermuda. It is active in health management and healthcare investment management business. The company provides life healthcare service, healthcare investment management business, natural health food business, advantage growth for children business. It is also engaged in investing and financing activities. The company manages its business in two reportable segments namely the health industry and Postpartum Care Services. It earns a majority of the revenue from the Postpartum Care Services. Geographically, it derives revenue from China.
Executives
Suntek Global Growth Fund Spc - Suntek Global Growth Fund Number One Sp 2102 Investment manager
Wang Aier 2305 Beneficiary of a trust
Cheung Wai Kuen 2201 Interest of corporation controlled by you
Champion Dynasty Limited 2101 Beneficial owner
Zhu Yufei 2101 Beneficial owner
Forever Heart Holdings Limited 2201 Interest of corporation controlled by you
Lee Kar Lung 2101 Beneficial owner
Zhuhai Deyou Bohui Enterprise Management Consulting Center (limited Partnership) 2101 Beneficial owner
Zhuhai Gao Ling Deyou Investment Management Co., Ltd. 2201 Interest of corporation controlled by you
Golden Full Holdings Limited 2106 Person having a security interest in shares

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