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Lithium & Boron Technology (Lithium & Boron Technology) Degree of Financial Leverage : 0.00 (As of Jun. 2022)


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What is Lithium & Boron Technology 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). Lithium & Boron Technology's Degree of Financial Leverage for the quarter that ended in Jun. 2022 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Lithium & Boron Technology's Degree of Financial Leverage or its related term are showing as below:

LBTI's Degree of Financial Leverage is not ranked *
in the Chemicals industry.
Industry Median: 1.03
* Ranked among companies with meaningful Degree of Financial Leverage only.

Lithium & Boron Technology Degree of Financial Leverage Historical Data

The historical data trend for Lithium & Boron Technology'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.

Lithium & Boron Technology Degree of Financial Leverage Chart

Lithium & Boron Technology Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.73 0.82 -7.76 2.36 0.77

Lithium & Boron Technology Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 0.46 -1.10 0.77 0.15 1.31

Competitive Comparison of Lithium & Boron Technology's Degree of Financial Leverage

For the Chemicals subindustry, Lithium & Boron Technology'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.


Lithium & Boron Technology's Degree of Financial Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Lithium & Boron Technology's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Lithium & Boron Technology's Degree of Financial Leverage falls into.



Lithium & Boron Technology Degree of Financial Leverage Calculation

Lithium & Boron Technology's Degree of Financial Leverage for the quarter that ended in Jun. 2022 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.025 (Jun. 2022) / 0.001 (Jun. 2021) - 1 )/( -4.839 (Jun. 2022) / 0.257 (Jun. 2021) - 1 )
=-26/-19.8288
=1.31***

* 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.


Lithium & Boron Technology  (OTCPK:LBTI) 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.


Lithium & Boron Technology Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Lithium & Boron Technology's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Lithium & Boron Technology (Lithium & Boron Technology) Business Description

Traded in Other Exchanges
N/A
Address
60 East Ren-Min Road, Xai Xi County, Qing Hai Province, Da-Chai Dan, CHN, 817000
Lithium & Boron Technology Inc is a Chinese boric acid manufacturing company. The company through its holding manufactures and sells boric acid and related compounds for industrial and consumer use. It offers boric acid manufacturing facilities to produce lithium carbonate for the rapidly growing electric vehicle battery market in China.
Executives
Jimin Zhang 10 percent owner 33 DENG SHI DOU STREET, BEJING F4 100006
Ginko International Investment Co., Ltd 10 percent owner WICKHAMS CAY II, ROAD TOWN, TORTOLA D8 VG1110
Jian Zhang 10 percent owner 60 EAST REN-MIN ROAD, DA-CHAI-DAN TOWN, XAIXI COUNTY,QING HAI PROVINCE F4 813300
Mao Zhang director, 10 percent owner 60 EAST REN-MIN ROAD, DA-CHAI-DAN TOWN, XAIXI COUNTY,QING HAI PROVINCE F4 813300
Huajun Ai officer: Corporate Secretary C/O SMARTHEAT, A-1,10, STREET 7, SHENYANG F4 110027
Northtech Holdings Inc. 10 percent owner MILL MALL 6 WICKHAMS CAY1, P. O. BOX 3085 ROAD TOWN, TORTOLA D8 VG1110
Kenneth E. Scipta director 4045 CENTER POINTE PLACE, SARASOTA FL 34233
Michael Wilhelm officer: Chief Financial Officer 6529 N. OSHKOSH AVENUE, CHICAGO IL 60631
Oliver Bialowons director, officer: President SCHREIBERSTR 38, STUTTGART 2M 70199
Qingtai Kong director A-1,10,STREET 7,SHENYANG ECON&TECH ZONE, C/O SMARTHEAT INC., SHENYANG F4 110141
Xudong Wang officer: VP of Strategy and Development C/O SMARTHEAT INC, A-1 TO ST 7 SHENYANG ECO & TECH DEV ZONE, SHENYANG F4 110027
Xin Li director C/O SMARTHEAT INC, A-1 10 STREET 7, SHENYANG F4 110027
Arnold Staloff director 1605 MAYFLOWER LANE, CHERRY HILL NJ 08003
Fredric W Rittereiser director C/O UTTC 1900 MARKET ST, STE 701, PHILADELPHIA PA 19103
Wenbin Lin director C/O SMARTHEAT,A-1,10, STREET 7, SHENYANG ECON & TECH DEV. ZONE, SHENYANG F4 110027

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