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ACMR (ACM Research) Degree of Financial Leverage : 0.63 (As of Mar. 2025)


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What is ACM Research 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). ACM Research's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 0.63. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

ACMR's Degree of Financial Leverage is ranked better than
75.05% of 990 companies
in the Semiconductors industry
Industry Median: 0.99 vs ACMR: 0.63

ACM Research Degree of Financial Leverage Historical Data

The historical data trend for ACM Research'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.

ACM Research Degree of Financial Leverage Chart

ACM Research Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.50 0.82 0.05 1.41 0.69

ACM Research Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 1.52 1.10 0.54 0.69 0.63

Competitive Comparison of ACM Research's Degree of Financial Leverage

For the Semiconductor Equipment & Materials subindustry, ACM Research'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.


ACM Research's Degree of Financial Leverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ACM Research's Degree of Financial Leverage distribution charts can be found below:

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


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ACM Research Degree of Financial Leverage Calculation

ACM Research's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.56 (Mar. 2025) / 1.32 (Mar. 2024) - 1 )/( 171.931 (Mar. 2025) / 133.604 (Mar. 2024) - 1 )
=0.1818/0.2869
=0.63***

* 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.


ACM Research  (NAS:ACMR) 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.


ACM Research Degree of Financial Leverage Related Terms

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


ACM Research Business Description

Traded in Other Exchanges
Address
42307 Osgood Road, Suite I, Fremont, CA, USA, 94539
ACM Research Inc supplies advanced, innovative capital equipment developed for the global semiconductor industry. Fabricators of advanced integrated circuits, or chips, can use its wet-cleaning and other front-end processing tools in numerous steps to improve product yield, even at increasingly advanced process nodes. It has designed these tools for use in fabricating foundry, logic and memory chips, including dynamic random-access memory, or DRAM, and 3D NAND-flash memory chips. The company also develops, manufactures and sells advanced packaging tools to wafer assembly and packaging customers.
Executives
David H Wang director, 10 percent owner, officer: See Remarks C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Mark Mckechnie officer: See remarks ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Chenming Hu director 2060 PEBBLE DRIVE, ALAMO CA 94507
Haiping Dun director C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Sotheara Cheav officer: See Remarks C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Xiao Xing director C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREEMONT CA 94539
Shanghai Science & Technology Venture Capital (group) Co., Ltd. 10 percent owner, other: Possible member of 10% group FLOOR 16-17, #118 RONGKE ROAD, PUDONG DISTRICT, SHANGHAI F4 201203
Jian Wang officer: See Remarks C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Lisa Feng officer: See remarks ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Tracy Liu director C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Fuping Chen officer: See Remarks ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Shanghai Pudong Science & Technology Investment Group Co., Ltd. 10 percent owner, other: Possible member of 10% group FLOOR 16-17, #118 RONGKE ROAD, PUDONG DISTRICT, SHANGHAI F4 200120
Yinan Xiang director C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539
Zhengfan Yang director XINXIN (HONGKONG) CAPITAL CO., LIMITED, 3RD FLOOR NORTH, NO. 7 FINANCIAL STREET, XICHENG DISTRICT, BEIJING F4 100033
Fufa Chen officer: See Remarks C/O ACM RESEARCH, INC., 42307 OSGOOD ROAD, SUITE I, FREMONT CA 94539