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CRAFT 1861 Global Holdings (CRAFT 1861 Global Holdings) Degree of Financial Leverage : 4.82 (As of Sep. 2023)


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What is CRAFT 1861 Global Holdings 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). CRAFT 1861 Global Holdings's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 4.82. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for CRAFT 1861 Global Holdings's Degree of Financial Leverage or its related term are showing as below:

BGPPF's Degree of Financial Leverage is ranked worse than
95.97% of 1042 companies
in the Drug Manufacturers industry
Industry Median: 0.98 vs BGPPF: 4.82

CRAFT 1861 Global Holdings Degree of Financial Leverage Historical Data

The historical data trend for CRAFT 1861 Global Holdings'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.

CRAFT 1861 Global Holdings Degree of Financial Leverage Chart

CRAFT 1861 Global Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
- - - 7.39

CRAFT 1861 Global Holdings Quarterly Data
Dec19 Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - 7.39 10.35 4.58 4.82

Competitive Comparison of CRAFT 1861 Global Holdings's Degree of Financial Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, CRAFT 1861 Global Holdings'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.


CRAFT 1861 Global Holdings's Degree of Financial Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, CRAFT 1861 Global Holdings's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where CRAFT 1861 Global Holdings's Degree of Financial Leverage falls into.



CRAFT 1861 Global Holdings Degree of Financial Leverage Calculation

CRAFT 1861 Global Holdings's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -353.744 (Sep. 2023) / -5.276 (Sep. 2022) - 1 )/( -199.88 (Sep. 2023) / -13.599 (Sep. 2022) - 1 )
=66.0478/13.6981
=4.82***

* 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.


CRAFT 1861 Global Holdings  (OTCPK:BGPPF) 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.


CRAFT 1861 Global Holdings Degree of Financial Leverage Related Terms

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CRAFT 1861 Global Holdings (CRAFT 1861 Global Holdings) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
100 Sun Avenue NE, Suite 650, Albuquerque, NM, USA, 87109
CRAFT 1861 Global Holdings Inc is a health and wellness company in the cannabinoid space. The company operates within the non-psychoactive, hemp-derived cannabidiol (CBD) market with consumer-packaged goods containing zero THC.

CRAFT 1861 Global Holdings (CRAFT 1861 Global Holdings) Headlines

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