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Mulsanne Group Holding (HKSE:01817) Degree of Financial Leverage : 8.27 (As of Jun. 2024)


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What is Mulsanne Group Holding 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). Mulsanne Group Holding's Degree of Financial Leverage for the quarter that ended in Jun. 2024 was 8.27. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Mulsanne Group Holding's Degree of Financial Leverage or its related term are showing as below:

HKSE:01817's Degree of Financial Leverage is ranked worse than
97.88% of 1085 companies
in the Retail - Cyclical industry
Industry Median: 1.03 vs HKSE:01817: 8.27

Mulsanne Group Holding Degree of Financial Leverage Historical Data

The historical data trend for Mulsanne Group Holding'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.

Mulsanne Group Holding Degree of Financial Leverage Chart

Mulsanne Group Holding Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial 1.22 1.52 0.86 0.41 6.36

Mulsanne Group Holding Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 0.02 0.41 0.66 6.36 8.27

Competitive Comparison of Mulsanne Group Holding's Degree of Financial Leverage

For the Apparel Retail subindustry, Mulsanne Group Holding'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.


Mulsanne Group Holding's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Mulsanne Group Holding's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Mulsanne Group Holding's Degree of Financial Leverage falls into.



Mulsanne Group Holding Degree of Financial Leverage Calculation

Mulsanne Group Holding's Degree of Financial Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.02 (Jun. 2024) / 0.044 (Jun. 2023) - 1 )/( 102.974 (Jun. 2024) / 110.246 (Jun. 2023) - 1 )
=-0.5455/-0.066
=8.27***

* 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.


Mulsanne Group Holding  (HKSE:01817) 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.


Mulsanne Group Holding Degree of Financial Leverage Related Terms

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


Mulsanne Group Holding Business Description

Traded in Other Exchanges
N/A
Address
No. 111, Shanshan Road, Wangchan Industrial Park, Haishu District, Zhejiang Province, Ningbo, CHN
Mulsanne Group Holding Ltd is an investment holding company. The Company's subsidiaries are engaged in the design, marketing and sale of apparel products. The operating segments of the company are Offline channels; Online channels and Others. The majority of the revenue is generated through Offline channels. The company generates revenue in Mainland China.
Executives
Yu Yong 2101 Beneficial owner
L Catterton Gp, Llc 2201 Interest of corporation controlled by you
Mckee Hand David 2201 Interest of corporation controlled by you
Crescent Gp Ltd. 2201 Interest of corporation controlled by you
Crescent Glory Singapore Pte. Ltd. 2101 Beneficial owner
Crescent Capital Investments Ltd. 2201 Interest of corporation controlled by you
Yang Herong 2201 Interest of corporation controlled by you
Madison International Limited 2201 Interest of corporation controlled by you
Gxg Trading Limited 2101 Beneficial owner
L Catterton, L.p. 2201 Interest of corporation controlled by you
L Catterton Management Limited 2201 Interest of corporation controlled by you
Catterton Holdings, Llc 2201 Interest of corporation controlled by you
L Catterton Asia Holdings Limited 2201 Interest of corporation controlled by you
L Catterton Asia Advisors 2201 Interest of corporation controlled by you
L Capital Asia 2 Sing Lp 2201 Interest of corporation controlled by you

Mulsanne Group Holding Headlines

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