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Leo Palace21 (Leo Palace21) Degree of Financial Leverage : 10.26 (As of Dec. 2023)


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What is Leo Palace21 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). Leo Palace21's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 10.26. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Leo Palace21's Degree of Financial Leverage or its related term are showing as below:

LEOPF's Degree of Financial Leverage is ranked worse than
96.82% of 1760 companies
in the Real Estate industry
Industry Median: 1.02 vs LEOPF: 10.26

Leo Palace21 Degree of Financial Leverage Historical Data

The historical data trend for Leo Palace21'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.

Leo Palace21 Degree of Financial Leverage Chart

Leo Palace21 Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.17 -1.61 1.13 0.81 -1.00

Leo Palace21 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 7.71 -1.00 -1.87 -5.75 10.26

Competitive Comparison of Leo Palace21's Degree of Financial Leverage

For the Real Estate Services subindustry, Leo Palace21'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.


Leo Palace21's Degree of Financial Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Leo Palace21's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Leo Palace21's Degree of Financial Leverage falls into.



Leo Palace21 Degree of Financial Leverage Calculation

Leo Palace21'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
=( 0.546 (Dec. 2023) / 0.236 (Dec. 2022) - 1 )/( 108.808 (Dec. 2023) / 104.456 (Dec. 2022) - 1 )
=1.3136/0.0417
=31.53***

* 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.


Leo Palace21  (OTCPK:LEOPF) 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.


Leo Palace21 Degree of Financial Leverage Related Terms

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Leo Palace21 (Leo Palace21) Business Description

Traded in Other Exchanges
Address
2-54-11 Honcho, Nakano-ku, Tokyo, JPN, 164-8622
Leo Palace21 Corp has two core businesses: Construction, which builds apartment buildings, and Leasing, which rents and manages units in the apartments that the company builds. Upon completion, Leo Palace21 typically sells buildings to investors and then pays them a fixed rental amount for all the units in the building, whether occupied or not. LeoPalace21 then rents, manages, and maintains the units and keeps all rent from tenants as its own revenue. The company also has an Elderly Care business, which runs nursing facilities, and a Hotel & Resort business. The vast majority of LeoPalace21's revenue comes from the Leasing segment, and more than 90% of the company's revenue is generated in Japan.

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