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Nocera (Nocera) Degree of Financial Leverage : 0.86 (As of Mar. 2024)


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What is Nocera 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). Nocera's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.86. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

NCRA's Degree of Financial Leverage is ranked better than
60.57% of 1836 companies
in the Consumer Packaged Goods industry
Industry Median: 0.99 vs NCRA: 0.86

Nocera Degree of Financial Leverage Historical Data

The historical data trend for Nocera'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.

Nocera Degree of Financial Leverage Chart

Nocera Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- 1.01 0.81 1.42

Nocera Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.85 0.86 0.87 1.42 0.86

Competitive Comparison of Nocera's Degree of Financial Leverage

For the Packaged Foods subindustry, Nocera'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.


Nocera's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nocera's Degree of Financial Leverage distribution charts can be found below:

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



Nocera Degree of Financial Leverage Calculation

Nocera's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.376 (Mar. 2024) / -0.602 (Mar. 2023) - 1 )/( -1.531 (Mar. 2024) / -2.705 (Mar. 2023) - 1 )
=-0.3754/-0.434
=0.86***

* 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.


Nocera  (NAS:NCRA) 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.


Nocera Degree of Financial Leverage Related Terms

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


Nocera (Nocera) Business Description

Traded in Other Exchanges
N/A
Address
3F (Building B), No. 185, Sec. 1, Datong Road, Xizhi District, New Taipei City, TWN, 221
Nocera Inc is engaged in the manufacturing of aquaculture equipment, construction of aquaculture facilities, managing and operating aquaculture facilities and consulting for third-party operators of aquaculture facilities. Its primary business operations consist of the design, development and production of RASs large-scale fish tank systems, for fish farms along with expert consulting, technology transfer, and aquaculture project management services to new and existing aquaculture management business services.
Executives
Andy Ching-an Jin director, officer: Chief Executive Officer 3F (BUILDING B), NO. 185, SEC. 1, DATONG RD., XIZHI DIST., NEW TAIPEI CITY F5 221
Yin-chieh Cheng director, officer: CFO and Chairman 15F #464 JIAYUAN RD., SEC. 3 SHULIN DIST., NEW TAIPEI CITY F5 23854
Kuan-yin Cheng officer: President and CEO 12772 BRADWELL ROAD, HERNDON VA 20101
Bi Zhang 10 percent owner BUILDING #5 FENG DU BAN PANG QU SHAN AN, ZHI,, XINGYI CITY, GUIZHOU QIANXINAN F4 562400
Erik S Nelson director, officer: Corporate Secretary 2030 POWERS FERRY RD SE, SUITE 212, ATLANTA GA 30339