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Radient Technologies (Radient Technologies) Degree of Financial Leverage : 0.00 (As of Dec. 2022)


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What is Radient Technologies 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). Radient Technologies's Degree of Financial Leverage for the quarter that ended in Dec. 2022 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

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

Radient Technologies Degree of Financial Leverage Historical Data

The historical data trend for Radient Technologies'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.

Radient Technologies Degree of Financial Leverage Chart

Radient Technologies Annual Data
Trend Dec13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.20 0.58 0.84 - 1.10

Radient Technologies Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 1.41 1.10 1.11 1.12 1.19

Competitive Comparison of Radient Technologies's Degree of Financial Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Radient Technologies'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.


Radient Technologies's Degree of Financial Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Radient Technologies's Degree of Financial Leverage distribution charts can be found below:

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



Radient Technologies Degree of Financial Leverage Calculation

Radient Technologies's Degree of Financial Leverage for the quarter that ended in Dec. 2022 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.015 (Dec. 2022) / -0.071 (Dec. 2021) - 1 )/( -7.321 (Dec. 2022) / -21.355 (Dec. 2021) - 1 )
=-0.7887/-0.6572
=1.20***

* 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.


Radient Technologies  (OTCPK:RDDTF) 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.


Radient Technologies Degree of Financial Leverage Related Terms

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Radient Technologies (Radient Technologies) Business Description

Traded in Other Exchanges
N/A
Address
4035 101 St. NW, Edmonton, AB, CAN, T6E 0A4
Radient Technologies Inc is a Canadian company engaged in manufacturing cannabis derivatives, formulations, and products. It has developed its extraction process, Microwave Assisted Processing (MAP), which is used for producing a consistent product at industrial-scale quantities. It provides its customers and partners with white-label extracts, formulations, and finished products that contain a broad spectrum of cannabinoid and terpene profiles. While it operates in Canada and is building an additional facility in Germany. It operates in a single segment namely the production and sale of cannabis-related retail products.

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