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Rias AS (CHIX:RIASBC) Degree of Financial Leverage : 1.05 (As of Mar. 2025)


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What is Rias AS 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). Rias AS's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 1.05. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CHIX:RIASBc's Degree of Financial Leverage is ranked worse than
52.04% of 392 companies
in the Building Materials industry
Industry Median: 1.035 vs CHIX:RIASBc: 1.05

Rias AS Degree of Financial Leverage Historical Data

The historical data trend for Rias AS'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.

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Rias AS Degree of Financial Leverage Chart

Rias AS Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.97 1.06 1.06 1.15 0.79

Rias AS Semi-Annual Data
Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 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 0.96 1.15 1.15 0.79 1.05

Competitive Comparison of Rias AS's Degree of Financial Leverage

For the Building Materials subindustry, Rias AS'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.


Rias AS's Degree of Financial Leverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Rias AS's Degree of Financial Leverage distribution charts can be found below:

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


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Rias AS Degree of Financial Leverage Calculation

Rias AS'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
=( 58.13 (Mar. 2025) / 42.6 (Mar. 2024) - 1 )/( 18.181 (Mar. 2025) / 13.49 (Mar. 2024) - 1 )
=0.3646/0.3477
=1.05***

* 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.


Rias AS  (CHIX:RIASBc) 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.


Rias AS Degree of Financial Leverage Related Terms

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


Rias AS Business Description

Traded in Other Exchanges
Address
Industrivej 11, Roskilde, DNK, 4000
Rias AS distributes semi-manufactured plastic products for building and construction work as well as the industry and public sector in Scandinavia. It operates through the construction and industry product sectors. The company has one operating segment and operates within two product areas which are Sale, processing and distribution of semi-finished plastic products to all branches of the building and construction sector. (Construction) and Sale, processing and distribution of semi-finished plastic products to industry and the public sector Key revenue is generated from domestic sales. Geographically located in Denmark, Sweden and Other Countries. Maximum revenue is from Denmark.

Rias AS Headlines

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