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Afine Investments (JSE:ANI) Degree of Financial Leverage : 1.36 (As of Aug. 2024)


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What is Afine Investments 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). Afine Investments's Degree of Financial Leverage for the quarter that ended in Aug. 2024 was 1.36. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

JSE:ANI's Degree of Financial Leverage is ranked worse than
69.71% of 733 companies
in the REITs industry
Industry Median: 0.9 vs JSE:ANI: 1.36

Afine Investments Degree of Financial Leverage Historical Data

The historical data trend for Afine Investments'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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Afine Investments Degree of Financial Leverage Chart

Afine Investments Annual Data
Trend Feb21 Feb22 Feb23 Feb24
Degree of Financial Leverage
- - 1.08 1.34

Afine Investments Semi-Annual Data
Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24
Degree of Financial Leverage Get a 7-Day Free Trial 0.64 1.08 -11.69 1.34 1.36

Competitive Comparison of Afine Investments's Degree of Financial Leverage

For the REIT - Specialty subindustry, Afine Investments'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.


Afine Investments's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Afine Investments's Degree of Financial Leverage distribution charts can be found below:

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


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Afine Investments Degree of Financial Leverage Calculation

Afine Investments's Degree of Financial Leverage for the quarter that ended in Aug. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.961 (Aug. 2024) / 0.308 (Aug. 2023) - 1 )/( 82.431 (Aug. 2024) / 32.205 (Aug. 2023) - 1 )
=2.1201/1.5596
=1.36***

* 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.


Afine Investments  (JSE:ANI) 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.


Afine Investments Degree of Financial Leverage Related Terms

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Afine Investments Business Description

Industry
Traded in Other Exchanges
N/A
Address
Unit 4602, Greenways, Strand, Western Cape, ZAF, 7140
Afine Investments Ltd is a specialized commercial real estate. It holds a portfolio of income-generating immovable properties focused mainly on the petroleum sector. geographically company operates in Gauteng and North-West, Mpumalanga, and Western Cape Segment. Out of these geographical segments, the majority of revenue is generated from Gauteng and North-West.

Afine Investments Headlines

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