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Ruchira Papers (BOM:532785) Degree of Financial Leverage : 0.10 (As of Mar. 2025)


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What is Ruchira Papers 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). Ruchira Papers's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 0.10. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BOM:532785's Degree of Financial Leverage is ranked better than
86.22% of 283 companies
in the Forest Products industry
Industry Median: 1.03 vs BOM:532785: 0.10

Ruchira Papers Degree of Financial Leverage Historical Data

The historical data trend for Ruchira Papers'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.

Ruchira Papers Degree of Financial Leverage Chart

Ruchira Papers Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.31 1.74 1.00 1.12 -

Ruchira Papers 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 1.12 1.11 1.11 0.10 -

Competitive Comparison of Ruchira Papers's Degree of Financial Leverage

For the Paper & Paper Products subindustry, Ruchira Papers'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.


Ruchira Papers's Degree of Financial Leverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Ruchira Papers's Degree of Financial Leverage distribution charts can be found below:

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


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Ruchira Papers Degree of Financial Leverage Calculation

Ruchira Papers'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
=( 22.56 (Mar. 2025) / 16.48 (Mar. 2024) - 1 )/( 945.445 (Mar. 2025) / 695.993 (Mar. 2024) - 1 )
=0.3689/0.3584
=1.03***

* 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.


Ruchira Papers  (BOM:532785) 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.


Ruchira Papers Degree of Financial Leverage Related Terms

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Ruchira Papers Business Description

Traded in Other Exchanges
Address
21-22, New Professors Colony, Yamuna Nagar, HR, IND, 135001
Ruchira Papers Ltd is engaged in the paper manufacturing business. The company is engaged in the manufacturing of kraft paper, writing, and printing paper. Its white writing and printing paper are used in the fabrication of notebooks and writing material while kraft paper finds its application in the packaging industry especially for making boxes/cartons and for other packaging requirements. The coloured paper is used in the fabrication of spiral notebooks, wedding cards, shade cards, children's colouring books, coloured copier paper and bill books. Geographically, it derives a majority of its revenue from India. The company operates in only one main segment, which is the manufacturing of paper.

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