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Vinci Shopping Centers Fundo Investimento Imobiliario-FII (BSP:VISC11) Degree of Financial Leverage : 1.32 (As of Dec. 2024)


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What is Vinci Shopping Centers Fundo Investimento Imobiliario-FII 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). Vinci Shopping Centers Fundo Investimento Imobiliario-FII's Degree of Financial Leverage for the quarter that ended in Dec. 2024 was 1.32. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Vinci Shopping Centers Fundo Investimento Imobiliario-FII's Degree of Financial Leverage or its related term are showing as below:

BSP:VISC11's Degree of Financial Leverage is ranked worse than
67.83% of 746 companies
in the REITs industry
Industry Median: 0.9 vs BSP:VISC11: 1.32

Vinci Shopping Centers Fundo Investimento Imobiliario-FII Degree of Financial Leverage Historical Data

The historical data trend for Vinci Shopping Centers Fundo Investimento Imobiliario-FII'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.

Vinci Shopping Centers Fundo Investimento Imobiliario-FII Degree of Financial Leverage Chart

Vinci Shopping Centers Fundo Investimento Imobiliario-FII Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only 1.05 0.59 1.12 0.70 1.32

Vinci Shopping Centers Fundo Investimento Imobiliario-FII Semi-Annual Data
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only 1.05 0.59 1.12 0.70 1.32

Competitive Comparison of Vinci Shopping Centers Fundo Investimento Imobiliario-FII's Degree of Financial Leverage

For the REIT - Retail subindustry, Vinci Shopping Centers Fundo Investimento Imobiliario-FII'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.


Vinci Shopping Centers Fundo Investimento Imobiliario-FII's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Vinci Shopping Centers Fundo Investimento Imobiliario-FII's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Vinci Shopping Centers Fundo Investimento Imobiliario-FII's Degree of Financial Leverage falls into.


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Vinci Shopping Centers Fundo Investimento Imobiliario-FII Degree of Financial Leverage Calculation

Vinci Shopping Centers Fundo Investimento Imobiliario-FII's Degree of Financial Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 6.61 (Dec. 2024) / 20.75 (Dec. 2023) - 1 )/( 249.979 (Dec. 2024) / 515.033 (Dec. 2023) - 1 )
=-0.6814/-0.5146
=1.32***

* 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.


Vinci Shopping Centers Fundo Investimento Imobiliario-FII  (BSP:VISC11) 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.


Vinci Shopping Centers Fundo Investimento Imobiliario-FII Degree of Financial Leverage Related Terms

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Vinci Shopping Centers Fundo Investimento Imobiliario-FII Business Description

Traded in Other Exchanges
N/A
Address
Avenida Bartolomeu Mitre, 336, Leblon, Rio de Janeiro, RJ, BRA, 22431-002
Vinci Shopping Centers Fundo Investimento Imobiliario-FII is a real estate investment trust. The company invests in real estate properties of shopping centers and / or related, such as strip malls, outlet centers, among others. The objective of the Fund is to obtain income through the investment of resources, predominantly in real estate, as well as in any real rights over real estate or, even, through indirect investment in real estate through the acquisition of real estate assets.

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