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Genesis Unicorn Capital (Genesis Unicorn Capital) Degree of Financial Leverage : 0.16 (As of Mar. 2023)


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What is Genesis Unicorn Capital 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). Genesis Unicorn Capital's Degree of Financial Leverage for the quarter that ended in Mar. 2023 was 0.16. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Genesis Unicorn Capital's Degree of Financial Leverage or its related term are showing as below:

GENQ's Degree of Financial Leverage is not ranked
in the Diversified Financial Services industry.
Industry Median: 0.67 vs GENQ: 0.16

Genesis Unicorn Capital Degree of Financial Leverage Historical Data

The historical data trend for Genesis Unicorn Capital'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.

Genesis Unicorn Capital Degree of Financial Leverage Chart

Genesis Unicorn Capital Annual Data
Trend Dec21 Dec22
Degree of Financial Leverage
- -

Genesis Unicorn Capital Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only - - - - 0.16

Competitive Comparison of Genesis Unicorn Capital's Degree of Financial Leverage

For the Shell Companies subindustry, Genesis Unicorn Capital'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.


Genesis Unicorn Capital's Degree of Financial Leverage Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Genesis Unicorn Capital's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Genesis Unicorn Capital's Degree of Financial Leverage falls into.



Genesis Unicorn Capital Degree of Financial Leverage Calculation

Genesis Unicorn Capital's Degree of Financial Leverage for the quarter that ended in Mar. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.082 (Mar. 2023) / -0.03 (Mar. 2022) - 1 )/( -2.326 (Mar. 2023) / -0.2 (Mar. 2022) - 1 )
=1.7333/10.63
=0.16***

* 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.


Genesis Unicorn Capital  (NAS:GENQ) 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.


Genesis Unicorn Capital Degree of Financial Leverage Related Terms

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


Genesis Unicorn Capital (Genesis Unicorn Capital) Business Description

Traded in Other Exchanges
N/A
Address
281 Witherspoon Stree, Suite 120, Princeton, NJ, USA, 08540
Website
Genesis Unicorn Capital Corp is a blank check company.
Executives
Adeoye Y Olukotun officer: Chief Executive Officer 3621 SOUTH STATE ST, 695 KMS PL, ANN ARBOR MI 48108
Grainne M Coen director 111 WEST 28TH STREET, NEW YORK NY 10001
Teck-yong Heng director NANSHAN DISTRICT #12 KEFA ROAD, DACHONG, CHENGSHIHUAYUAN BLOCK 5, UNIT #38D, GUANGDONG PROVINCE, SHENZHEN F4 518057
Juan Fernandez Pascual officer: Chief Operating Officer URBANIZATION LA SIERRA, 28 39110, SOTO DE LA MARINA U3 87670
Chung Fan Cheng director 16G, TOWER 1, TWIN PEAKS, 9 CHI SHIN STREET, TSEUNG KWAN O K3 00000
Samuel Lui director, 10 percent owner, officer: Chairman, President, CFO 7/F UNIT B, TOWER 5,RESIDENCE BEL-AIR, PHASE 1, 28 BEL-AIR AVENUE, POKFULAM K3 00000
Ernest Fong director 80 RAFFLES PLACE, # 37-02, UOB, PLAZA 1, S048624 U0 069541
Niel Starksen officer: Chief Scientific Officer 12119 EDGECLIFF PLACE, LOS ALTOS HILLS CA 94022
Genesis Unicorn Capital, Llc 10 percent owner 281 WITHERSPOON STREET, SUITE 120, PRINCETON NJ 08540