/term/degree-of-financial-leverage/MNAP MNAP (MNP Petroleum) Degree of Financial Leverage
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MNP Petroleum (MNP Petroleum) Degree of Financial Leverage : 0.00 (As of Sep. 2015)


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What is MNP Petroleum 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). MNP Petroleum's Degree of Financial Leverage for the quarter that ended in Sep. 2015 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

MNAP's Degree of Financial Leverage is not ranked *
in the Oil & Gas industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Financial Leverage only.

MNP Petroleum Degree of Financial Leverage Historical Data

The historical data trend for MNP Petroleum'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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MNP Petroleum Degree of Financial Leverage Chart

MNP Petroleum Annual Data
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Degree of Financial Leverage
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MNP Petroleum Quarterly Data
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Competitive Comparison of MNP Petroleum's Degree of Financial Leverage

For the Oil & Gas E&P subindustry, MNP Petroleum'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.


MNP Petroleum's Degree of Financial Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, MNP Petroleum's Degree of Financial Leverage distribution charts can be found below:

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



MNP Petroleum Degree of Financial Leverage Calculation

MNP Petroleum's Degree of Financial Leverage for the quarter that ended in Sep. 2015 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.045 (Sep. 2015) / -0.022 (Sep. 2014) - 1 )/( -6.324 (Sep. 2015) / -4.172 (Sep. 2014) - 1 )
=1.0455/0.5158
=2.03***

* 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.


MNP Petroleum  (OTCPK:MNAP) 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.


MNP Petroleum Degree of Financial Leverage Related Terms

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MNP Petroleum (MNP Petroleum) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Bahnhofstrasse 9, P.O. Box 1259, Baar, Zug, CHE, 6341
MNP Petroleum Corp is engaged in the business of exploration and development of oil and gas resources, primarily in Central and East Asia. The company conducts its operations directly through participation in ventures with other oil and gas companies. Besides, it is also involved in exploration projects in Tajikistan. The company holds approximately 90% equity interest in CJSC Somon Oil which owns a working interest in two petroleum exploration licenses in the Fergana Basin.
Executives
Libra Advisors Llc 10 percent owner 767 THIRD AVENUE, 21ST FLOOR, NEW YORK NY 10017
Ranjan Tandon 10 percent owner 909 THIRD AVENUE, 29TH FLOOR, NEW YORK NY 10022
Libra Fund, L.p. 10 percent owner 767 THIRD AVENUE, 21ST FLOOR, NEW YORK NY 10017
Libra Associates Llc 10 percent owner 777 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10017
Steven Andrew Sanders director, officer: Secretary 431 EAST 20TH STREET, NEW YORK NY 10010

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