GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » J D W Sugar Mills Ltd (KAR:JDWS) » Definitions » Degree of Financial Leverage

J D W Sugar Mills (KAR:JDWS) Degree of Financial Leverage : 1.21 (As of Dec. 2023)


View and export this data going back to 1992. Start your Free Trial

What is J D W Sugar Mills 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). J D W Sugar Mills's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.21. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for J D W Sugar Mills's Degree of Financial Leverage or its related term are showing as below:

KAR:JDWS's Degree of Financial Leverage is ranked worse than
65.38% of 1837 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs KAR:JDWS: 1.21

J D W Sugar Mills Degree of Financial Leverage Historical Data

The historical data trend for J D W Sugar Mills'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.

J D W Sugar Mills Degree of Financial Leverage Chart

J D W Sugar Mills 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 -2.07 -0.02 27.09 -0.20 -2.59

J D W Sugar Mills Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 13.71 2.83 3.98 -2.59 1.21

Competitive Comparison of J D W Sugar Mills's Degree of Financial Leverage

For the Confectioners subindustry, J D W Sugar Mills'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.


J D W Sugar Mills's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, J D W Sugar Mills's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where J D W Sugar Mills's Degree of Financial Leverage falls into.



J D W Sugar Mills Degree of Financial Leverage Calculation

J D W Sugar Mills's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 137.79 (Dec. 2023) / 61.09 (Dec. 2022) - 1 )/( 18217.358 (Dec. 2023) / 8947.688 (Dec. 2022) - 1 )
=1.2555/1.036
=1.21***

* 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.


J D W Sugar Mills  (KAR:JDWS) 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.


J D W Sugar Mills Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of J D W Sugar Mills's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


J D W Sugar Mills (KAR:JDWS) Business Description

Traded in Other Exchanges
N/A
Address
17 - Abid Majeed Road, Lahore Cantonment, Lahore, PB, PAK
J D W Sugar Mills Ltd engages in the manufacturing and sale of crystalline sugar, Rlectricity and managing Corporate Farms.. The company's operating segments include Sugar; Co-Generation Power; Corporate Farms and others. It generates maximum revenue from the Sugar segment. The Sugar segment is engaged in the production and sale of crystalline sugar and other related joint and by-products. Its Co-Generation Power segment includes the generation and sale of electricity to CPPA-G. The Corporate Farms segment includes managing corporate farms for the cultivation of sugarcane and a small number of other crops. The other segment involves Project under construction for manufacture / generation and sale of ethanol and energy. However, operation of paper pulp classified as disposal group.

J D W Sugar Mills (KAR:JDWS) Headlines

No Headlines