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Cornerstone Technologies Holdings (HKSE:08391) Degree of Financial Leverage : 1.09 (As of Jun. 2024)


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What is Cornerstone Technologies 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). Cornerstone Technologies Holdings's Degree of Financial Leverage for the quarter that ended in Jun. 2024 was 1.09. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

HKSE:08391's Degree of Financial Leverage is ranked worse than
58.18% of 1009 companies
in the Business Services industry
Industry Median: 0.99 vs HKSE:08391: 1.09

Cornerstone Technologies Holdings Degree of Financial Leverage Historical Data

The historical data trend for Cornerstone Technologies 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.

Cornerstone Technologies Holdings Degree of Financial Leverage Chart

Cornerstone Technologies Holdings Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial 30.11 0.86 0.42 0.90 1.62

Cornerstone Technologies Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.88 0.84 0.67 1.62 1.09

Competitive Comparison of Cornerstone Technologies Holdings's Degree of Financial Leverage

For the Specialty Business Services subindustry, Cornerstone Technologies 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.


Cornerstone Technologies Holdings's Degree of Financial Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Cornerstone Technologies Holdings's Degree of Financial Leverage distribution charts can be found below:

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



Cornerstone Technologies Holdings Degree of Financial Leverage Calculation

Cornerstone Technologies Holdings'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
=( -0.086 (Jun. 2024) / -0.227 (Jun. 2023) - 1 )/( -62.435 (Jun. 2024) / -145.705 (Jun. 2023) - 1 )
=-0.6211/-0.5715
=1.09***

* 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.


Cornerstone Technologies Holdings  (HKSE:08391) 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.


Cornerstone Technologies Holdings Degree of Financial Leverage Related Terms

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Cornerstone Technologies Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 9 Science Museum Road, Office Units 1107 - 11, 11th Floor, New East Ocean Centre, Kowloon - District, Hong Kong, HKG
Cornerstone Technologies Holdings Ltd is an investment holding company. It is a printing services provider that principally engages in the provisions of printing, typesetting, and translation services in Hong Kong. The group is also engaged in supplying EV-integrated charging solutions, including a central management system, hub for e-payment, load management system, and license plate recognition system for electric vehicles and smart parking. It derives prime revenue from the Printing business.
Executives
Wu Jianwei 2101 Beneficial owner
Liang Zihao 2101 Beneficial owner
Global Fortune Global Limited 2101 Beneficial owner
Tanner Enterprises Group Limited 2201 Interest of corporation controlled by you
Glorytwin Limited 2101 Beneficial owner
Wu Yanyan 2101 Beneficial owner
Li Man Keung Edwin 2201 Interest of corporation controlled by you
Gateway Capital (hong Kong) Limited 2102 Investment manager
Gaw Growth Equity Fund I Gp Limited 2201 Interest of corporation controlled by you
Abax Asian Structured Private Credit Fund 2022, Lp 2101 Beneficial owner
Abax Global Capital Gp 2022 Ltd. 2201 Interest of corporation controlled by you
Lau Wai Yan Lawson 2101 Beneficial owner

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