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Superlon Holdings Bhd (XKLS:7235) Degree of Financial Leverage : 1.27 (As of Jan. 2024)


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What is Superlon Holdings Bhd 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). Superlon Holdings Bhd's Degree of Financial Leverage for the quarter that ended in Jan. 2024 was 1.27. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Superlon Holdings Bhd's Degree of Financial Leverage or its related term are showing as below:

XKLS:7235's Degree of Financial Leverage is ranked worse than
68.98% of 1625 companies
in the Construction industry
Industry Median: 0.99 vs XKLS:7235: 1.27

Superlon Holdings Bhd Degree of Financial Leverage Historical Data

The historical data trend for Superlon Holdings Bhd'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.

Superlon Holdings Bhd Degree of Financial Leverage Chart

Superlon Holdings Bhd Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.44 0.90 1.66 1.04 1.92

Superlon Holdings Bhd Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 1.20 1.92 -8.03 0.98 1.27

Competitive Comparison of Superlon Holdings Bhd's Degree of Financial Leverage

For the Building Products & Equipment subindustry, Superlon Holdings Bhd'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.


Superlon Holdings Bhd's Degree of Financial Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Superlon Holdings Bhd's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Superlon Holdings Bhd's Degree of Financial Leverage falls into.



Superlon Holdings Bhd Degree of Financial Leverage Calculation

Superlon Holdings Bhd's Degree of Financial Leverage for the quarter that ended in Jan. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.066 (Jan. 2024) / 0.017 (Jan. 2023) - 1 )/( 15.001 (Jan. 2024) / 4.576 (Jan. 2023) - 1 )
=2.8824/2.2782
=1.27***

* 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.


Superlon Holdings Bhd  (XKLS:7235) 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.


Superlon Holdings Bhd Degree of Financial Leverage Related Terms

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Superlon Holdings Bhd (XKLS:7235) Business Description

Traded in Other Exchanges
N/A
Address
Lot 2567, Jalan Sungai Jati, Klang, MYS, 41200
Superlon Holdings Bhd is principally engaged in the business of investment holding and provision of management services. The group comprises the following business segments: Insulation Materials segment, which manufactures thermal insulation materials mainly for the heating, ventilation, air-conditioning, and refrigeration (HVAC&R) industry; HVAC&R Parts and Equipment engaged in trading of HVAC&R parts and equipment and Investment holdings. Geographically, it derives a majority of its revenue from Asia (excluding Malaysia) and Oceania and also has a presence in Africa, America, and Europe.

Superlon Holdings Bhd (XKLS:7235) Headlines

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