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Kuoni Reisen Holding AG (XSWX:KUNN) Degree of Financial Leverage : 0.00 (As of Dec. 2015)


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What is Kuoni Reisen Holding AG 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). Kuoni Reisen Holding AG's Degree of Financial Leverage for the quarter that ended in Dec. 2015 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Kuoni Reisen Holding AG's Degree of Financial Leverage or its related term are showing as below:

XSWX:KUNN's Degree of Financial Leverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 0.93
* Ranked among companies with meaningful Degree of Financial Leverage only.

Kuoni Reisen Holding AG Degree of Financial Leverage Historical Data

The historical data trend for Kuoni Reisen Holding AG'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.

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Kuoni Reisen Holding AG Degree of Financial Leverage Chart

Kuoni Reisen Holding AG Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Degree of Financial Leverage
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Kuoni Reisen Holding AG Quarterly Data
Sep09 Dec09 Jun10 Sep10 Dec10 Jun11 Sep11 Dec11 Jun12 Sep12 Dec12 Jun13 Sep13 Dec13 Jun14 Sep14 Dec14 Jun15 Sep15 Dec15
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Competitive Comparison of Kuoni Reisen Holding AG's Degree of Financial Leverage

For the Leisure subindustry, Kuoni Reisen Holding AG'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.


Kuoni Reisen Holding AG's Degree of Financial Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Kuoni Reisen Holding AG's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Kuoni Reisen Holding AG's Degree of Financial Leverage falls into.



Kuoni Reisen Holding AG Degree of Financial Leverage Calculation

Kuoni Reisen Holding AG's Degree of Financial Leverage for the quarter that ended in Dec. 2015 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -75.51 (Dec. 2015) / 17.2 (Dec. 2014) - 1 )/( 87.9 (Dec. 2015) / 83.1 (Dec. 2014) - 1 )
=-5.3901/0.0578
=-93.32***

* 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.


Kuoni Reisen Holding AG  (XSWX:KUNN) 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.


Kuoni Reisen Holding AG Degree of Financial Leverage Related Terms

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Kuoni Reisen Holding AG (XSWX:KUNN) Business Description

Traded in Other Exchanges
N/A
Address
Kuoni Reisen Holding AG was established in 1906. The Company operates travel agencies and provides travel planning services. It provides leisure travel services as well as offers tours and support services for overseas travelers in Europe. The Company's business activities are split into three different areas: Destination Management, Tour operating and Visa services. Destination & Accommodation services involve procurement and supply of services as a specialized wholesaler and supplier. It provides accommodation and land components to online & offline travel agencies, tour operators and aggregators via its efficient, online distribution system. Tour Operating activities focus on outbound leisure travel from European and Asian source markets and offer a variety of tailor-made, individual and packaged holidays to end consumers and online & offline travel agencies. Visa Processing Services offers administrative parts of the visa application, and other consular processes.

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