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Hatcher Group (HKSE:08365) Degree of Financial Leverage : 0.91 (As of Mar. 2024)


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What is Hatcher Group 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). Hatcher Group's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.91. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

HKSE:08365's Degree of Financial Leverage is ranked better than
53.47% of 662 companies
in the Capital Markets industry
Industry Median: 0.94 vs HKSE:08365: 0.91

Hatcher Group Degree of Financial Leverage Historical Data

The historical data trend for Hatcher Group'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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Hatcher Group Degree of Financial Leverage Chart

Hatcher Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.99 2.61 0.78 0.65 -

Hatcher Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 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 Premium Member Only -0.56 0.03 - - 0.91

Competitive Comparison of Hatcher Group's Degree of Financial Leverage

For the Capital Markets subindustry, Hatcher Group'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.


Hatcher Group's Degree of Financial Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Hatcher Group's Degree of Financial Leverage distribution charts can be found below:

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



Hatcher Group Degree of Financial Leverage Calculation

Hatcher Group'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
=( 0.221 (Mar. 2024) / -0.875 (Mar. 2023) - 1 )/( 9.107 (Mar. 2024) / -24.268 (Mar. 2023) - 1 )
=-1.2526/-1.3753
=0.91***

* 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.


Hatcher Group  (HKSE:08365) 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.


Hatcher Group Degree of Financial Leverage Related Terms

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Hatcher Group Business Description

Traded in Other Exchanges
N/A
Address
181 Queen’s Road Central, 21/F, Low Block, Grand Millennium Plaza, Hong Kong, HKG
Hatcher Group Ltd is a financial services provider. It has two operating segments; Licensed business; Provision of asset management services, corporate finance, advisory services, placing and, underwriting services, securities brokerage and margin financing, and Non-licensed business; Provision of accounting and taxation services, business consulting services, corporate secretarial services, ESG advisory services, human resources services, and risk management and internal control advisory services. majority of its revenue comes from non-licensed businesses.
Executives
Tanner Enterprises Group Limited
Li Man Keung Edwin
Gan Fanglun 2101 Beneficial owner
Jayden Wealth Limited 2101 Beneficial owner
Wan Ho Yan Letty 2201 Interest of corporation controlled by you
Li Chun Fung

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