What is Grand Talents Group 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).
Grand Talents Group Holdings does not have enough data to calculate Degree of Financial Leverage.
Grand Talents Group Holdings Degree of Financial Leverage Historical Data
* 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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Grand Talents Group Holdings Degree of Financial Leverage Chart
Competitive Comparison of Grand Talents Group Holdings's Degree of Financial Leverage
For the Engineering & Construction subindustry, Grand Talents Group 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.
Grand Talents Group Holdings's Degree of Financial Leverage Distribution in the Construction Industry
For the Construction industry and Industrials sector, Grand Talents Group Holdings's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Grand Talents Group Holdings's Degree of Financial Leverage falls into.
* 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.
Grand Talents Group Holdings (HKSE:08516) 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.
Grand Talents Group Holdings Degree of Financial Leverage Related Terms
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Grand Talents Group Holdings Ltd is an investment holding company engaged in civil engineering construction works. The group principally repairs and maintains structures of roads and highways in Hong Kong. The business activities of the group function through Civil engineering construction work and Repair & maintenance work segments. Under the works Civil engineering segment, the group focuses on road and highway-related infrastructures, whereas the Repair and maintenance works include repair and maintenance work of structures of roads and highways. The company derives a majority of revenue from the Repair and maintenance works segment. All the operations generally function in Hong Kong.
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