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Edvance International Holdings (HKSE:01410) Degree of Financial Leverage : 0.77 (As of Mar. 2024)


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What is Edvance International Holdings 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). Edvance International Holdings's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.77. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Edvance International Holdings's Degree of Financial Leverage or its related term are showing as below:

HKSE:01410's Degree of Financial Leverage is ranked better than
67.22% of 2694 companies
in the Software industry
Industry Median: 0.97 vs HKSE:01410: 0.77

Edvance International Holdings Degree of Financial Leverage Historical Data

The historical data trend for Edvance International Holdings'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.

Edvance International Holdings Degree of Financial Leverage Chart

Edvance International Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.23 1.41 0.83 1.20 0.77

Edvance International Holdings Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 0.83 1.05 1.20 0.94 0.77

Competitive Comparison of Edvance International Holdings's Degree of Financial Leverage

For the Software - Infrastructure subindustry, Edvance International Holdings'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.


Edvance International Holdings's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Edvance International Holdings's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Edvance International Holdings's Degree of Financial Leverage falls into.



Edvance International Holdings Degree of Financial Leverage Calculation

Edvance International Holdings's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.029 (Mar. 2024) / -0.027 (Mar. 2023) - 1 )/( 35.609 (Mar. 2024) / -21.154 (Mar. 2023) - 1 )
=-2.0741/-2.6833
=0.77***

* 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.


Edvance International Holdings  (HKSE:01410) 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.


Edvance International Holdings Degree of Financial Leverage Related Terms

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


Edvance International Holdings Business Description

Traded in Other Exchanges
N/A
Address
98 How Ming Street, 25th Floor, Tower 1, The Millennity, Kwun Tong, Kowloon, Hong Kong, HKG
Edvance International Holdings Ltd is an investment holding company. The company is engaged in the provision of information technology security products and services. Its Cybersecurity products segment includes network security products, system security products and application and data security products. The cybersecurity services segment is engaged in the provision of technical implementation, maintenance, and support services. Digital assets Financial services and investment business refers to the provision of financial services to customers, venture investment and securities trading by the Group. It generates maximum revenue from the Cybersecurity security products segment. Geographically, it derives a majority of its revenue from Hong Kong.
Executives
Liu Yui Ting Raymond 2101 Beneficial owner
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Mind Bright Limited 2101 Beneficial owner
Cheng Chui Ying 2202 Interest of your spouse
Lin Fai 2202 Interest of your spouse
Lo Wai Ho Ashley 2201 Interest of corporation controlled by you
Tang Sing Hing Kenny 2201 Interest of corporation controlled by you
Yip Lai Ching 2202 Interest of your spouse
Cheung Mo Chi 2202 Interest of your spouse
Von John 2201 Interest of corporation controlled by you

Edvance International Holdings Headlines

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