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Neusoft Education Technology Co (HKSE:09616) Degree of Financial Leverage : -0.09 (As of Jun. 2024)


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What is Neusoft Education Technology Co 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). Neusoft Education Technology Co's Degree of Financial Leverage for the quarter that ended in Jun. 2024 was -0.09. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Neusoft Education Technology Co's Degree of Financial Leverage or its related term are showing as below:

HKSE:09616's Degree of Financial Leverage is ranked better than
84.58% of 253 companies
in the Education industry
Industry Median: 0.95 vs HKSE:09616: -0.09

Neusoft Education Technology Co Degree of Financial Leverage Historical Data

The historical data trend for Neusoft Education Technology Co'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.

Neusoft Education Technology Co Degree of Financial Leverage Chart

Neusoft Education Technology Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial 0.26 1.33 1.28 1.11 1.61

Neusoft Education Technology Co Semi-Annual Data
Dec17 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 1.36 1.11 12.77 1.61 -0.09

Competitive Comparison of Neusoft Education Technology Co's Degree of Financial Leverage

For the Education & Training Services subindustry, Neusoft Education Technology Co'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.


Neusoft Education Technology Co's Degree of Financial Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Neusoft Education Technology Co's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Neusoft Education Technology Co's Degree of Financial Leverage falls into.



Neusoft Education Technology Co Degree of Financial Leverage Calculation

Neusoft Education Technology Co'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
=( 0.726 (Jun. 2024) / 0.727 (Jun. 2023) - 1 )/( 746.924 (Jun. 2024) / 736.227 (Jun. 2023) - 1 )
=-0.0014/0.0145
=-0.09***

* 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.


Neusoft Education Technology Co  (HKSE:09616) 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.


Neusoft Education Technology Co Degree of Financial Leverage Related Terms

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Neusoft Education Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Software Park Road, Ganjingzi District, Liaoning, Dalian, CHN
Neusoft Education Technology Co Ltd is a China-based investment holding company principally engaged in providing full-time formal higher education services, continuing education services, as well as education resources and apprenticeship programmes. Its full-time formal higher education services and continuing education services are operated by three universities and eight training schools. Its education resources and apprenticeship programme are offered by Dalian Education and a few of its subsidiaries, such as Shanghai Ruixiang and Tianjin Ruidao. It has one operating segment and geographical segment being providing higher education services in PRC.
Executives
Liu Jiren 2501 Other
Pandanus Partners L.p. 2201 Interest of corporation controlled by you
Pandanus Associates Inc. 2201 Interest of corporation controlled by you
Fil Limited 2201 Interest of corporation controlled by you
Deluxe Capital Limited 2201 Interest of corporation controlled by you
Sun Yinhuan 2307 Founder of a discretionary trust who can infl
Century Bliss International Limited 2101 Beneficial owner
Tmf (cayman) Ltd. 2301 Trustee
Deluxe Glorious Limited 2201 Interest of corporation controlled by you
Liu Jiren 2501 Other
Cheng Huiyan 2202 Interest of your spouse
Kang Ruidao International Investment Inc. 2101 Beneficial owner
Kang Ruidao Education First Investment Limited 2201 Interest of corporation controlled by you
Neusoft Holdings International Inc. 2201 Interest of corporation controlled by you
Dalian Neusoft Holdings Co., Ltd. 2201 Interest of corporation controlled by you

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