Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Advanced Chemical Industries's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was -3.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Advanced Chemical Industries's Degree of Financial Leverage or its related term are showing as below:
DHA:ACI's Degree of Financial Leverage is ranked better than 93.92% of 543
companies
in the Conglomerates industry
Industry Median: 1
vs DHA:ACI: -3.00
Advanced Chemical Industries (DHA:ACI) 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.
Advanced Chemical Industries Degree of Financial Leverage Related Terms
Advanced Chemical Industries Degree of Financial Leverage Historical Data
* 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.
Advanced Chemical Industries Degree of Financial Leverage Chart
DHA:ACI vs HON, MMM: Degree of Financial Leverage Comparison
For the Conglomerates subindustry, Advanced Chemical Industries'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.
Advanced Chemical Industries Degree of Financial Leverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Advanced Chemical Industries's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Advanced Chemical Industries's Degree of Financial Leverage falls into.
* 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.
What does a Degree of Financial Leverage of -3.00 mean?
Advanced Chemical Industries (DHA:ACI) has a Degree of Financial Leverage of -3.00 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Advanced Chemical Industries and its competitors. According to the industry distribution chart, Advanced Chemical Industries ranks #33 out of 543 companies in the Conglomerates industry, placing it in the top 6.1%.
Is Advanced Chemical Industries' Degree of Financial Leverage too high?
Advanced Chemical Industries' current Degree of Financial Leverage is -3.00. Based on the distribution chart, Advanced Chemical Industries ranks #33 out of 543 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Advanced Chemical Industries has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Chemical Industries' Degree of Financial Leverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Advanced Chemical Industries ranks #33 out of 543 companies for Degree of Financial Leverage. This places Advanced Chemical Industries in the top 6% of its industry — outperforming the majority of peers. The industry median Degree of Financial Leverage is 1.00. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Conglomerates company?
The median Degree of Financial Leverage among Conglomerates companies is 1.00, based on 543 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Advanced Chemical Industries and its competitors. For the Conglomerates industry, the median Degree of Financial Leverage is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Chemical Industries's current Degree of Financial Leverage is -3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Advanced Chemical Industries (DHA:ACI) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT210.17, compared to a current price of BDT189.10 — trading 10% below its estimated fair value. The current Degree of Financial Leverage is -3.00. Advanced Chemical Industries' overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Advanced Chemical Industries (DHA:ACI), the current Degree of Financial Leverage is -3.00 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advanced Chemical Industries (DHA:ACI) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Chemical Industries stock appears to be undervalued.
The current stock price of BDT189.10 is trading 10% below its estimated GF Value™ of BDT210.17.
GuruFocus considers Advanced Chemical Industries to be Modestly Undervalued.
Key valuation signals for DHA:ACI:
Degree of Financial Leverage: -3.00
GF Value™: BDT210.17 vs. price of BDT189.10 (10% below fair value)
No single metric tells the full story. See the DHA:ACI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Chemical Industries PLC is a Bangladesh-based company engaged in the manufacturing of pharmaceuticals, consumer brands, animal health products, and also markets, along with agrochemicals, seeds, and other consumer brand items. The company operates in Healthcare, Agribusinesses, Retail Chain, and Consumer brands that include Livestock, Fisheries, Farm Mechanization activities, Toiletries, Home Care, Hygiene, Electrical, Electronics, Mobile, Salt, Flour, Foods, Rice, Tea, Edible Oil, Paints, and International Businesses.
89GF Score
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