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Taaleem Management Services Co (CAI:TALM) Degree of Financial Leverage : 0.94 (As of Feb. 2025)


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What is Taaleem Management Services Co 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). Taaleem Management Services Co's Degree of Financial Leverage for the quarter that ended in Feb. 2025 was 0.94. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Taaleem Management Services Co's Degree of Financial Leverage or its related term are showing as below:

CAI:TALM's Degree of Financial Leverage is ranked better than
51.43% of 245 companies
in the Education industry
Industry Median: 0.95 vs CAI:TALM: 0.94

Taaleem Management Services Co Degree of Financial Leverage Historical Data

The historical data trend for Taaleem Management Services Co'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.

Taaleem Management Services Co Degree of Financial Leverage Chart

Taaleem Management Services Co Annual Data
Trend Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Financial Leverage
Get a 7-Day Free Trial 0.65 -2.86 -2.63 1.21 1.08

Taaleem Management Services Co Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 1.17 1.13 1.08 0.98 0.94

Competitive Comparison of Taaleem Management Services Co's Degree of Financial Leverage

For the Education & Training Services subindustry, Taaleem Management Services Co'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.


Taaleem Management Services Co's Degree of Financial Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Taaleem Management Services Co's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Taaleem Management Services Co's Degree of Financial Leverage falls into.


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Taaleem Management Services Co Degree of Financial Leverage Calculation

Taaleem Management Services Co's Degree of Financial Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.905 (Feb. 2025) / 0.618 (Feb. 2024) - 1 )/( 905.317 (Feb. 2025) / 606.661 (Feb. 2024) - 1 )
=0.4644/0.4923
=0.94***

* 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.


Taaleem Management Services Co  (CAI:TALM) 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.


Taaleem Management Services Co Degree of Financial Leverage Related Terms

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Taaleem Management Services Co Business Description

Traded in Other Exchanges
N/A
Address
26th of July Corridor, Majarrah Business Center, Neptune Building, Sheikh Zayed, Giza, EGY
Taaleem Management Services Co is a higher education management company that provides methods of education aligned with the future needs of the working environment. It is a provider of higher education and operates a platform-based model governed by a team of the highest caliber to ensure that it operates efficiently, grows sustainably, and generates shared value for the community. The company's portfolio currently includes two operational assets and one asset under-development asset. Its first asset is Nahda University and the other two are Badya University and Memphis University.

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