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Royal Century Resources Holdings (HKSE:08125) Degree of Financial Leverage : 1.05 (As of Sep. 2023)


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What is Royal Century Resources 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). Royal Century Resources Holdings's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 1.05. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

HKSE:08125's Degree of Financial Leverage is ranked worse than
53.53% of 411 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.01 vs HKSE:08125: 1.05

Royal Century Resources Holdings Degree of Financial Leverage Historical Data

The historical data trend for Royal Century Resources 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.

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Royal Century Resources Holdings Degree of Financial Leverage Chart

Royal Century Resources Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.16 0.46 2.13 -10.97 1.28

Royal Century Resources Holdings Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 -0.17 1.52 1.28 1.06 1.05

Competitive Comparison of Royal Century Resources Holdings's Degree of Financial Leverage

For the Furnishings, Fixtures & Appliances subindustry, Royal Century Resources 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.


Royal Century Resources Holdings's Degree of Financial Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Royal Century Resources Holdings's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Royal Century Resources Holdings's Degree of Financial Leverage falls into.



Royal Century Resources Holdings Degree of Financial Leverage Calculation

Royal Century Resources Holdings's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.512 (Sep. 2023) / -0.723 (Sep. 2022) - 1 )/( -18.258 (Sep. 2023) / -25.302 (Sep. 2022) - 1 )
=-0.2918/-0.2784
=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.


Royal Century Resources Holdings  (HKSE:08125) 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.


Royal Century Resources Holdings Degree of Financial Leverage Related Terms

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Royal Century Resources Holdings (HKSE:08125) Business Description

Traded in Other Exchanges
N/A
Address
26 Harbour Road, Suite 2201, 22nd Floor, China Resources Building, Wanchai, Hong Kong, HKG
Royal Century Resources Holdings Ltd is a Hong Kong-based investment holding company. The company is principally engaged in the provision of fitting out and engineering services, design and procurement of furnishings and related products services, leasing of construction equipment, sourcing and merchandising of fine and rare wines, and provision of financial services. The company earns the majority of its revenue from design, fitting out, and engineering services. The group's operations are located in Hong Kong, and the PRC, of which the main revenue is generated from Hong Kong.
Executives
Zhao Chuanrong 2101 Beneficial owner
Max Premier Limited 2101 Beneficial owner
Hong Kong Chaoshang Group Limited 2101 Beneficial owner

Royal Century Resources Holdings (HKSE:08125) Headlines

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