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Koh Brothers Eco Engineering (SGX:5HV) Degree of Financial Leverage : 0.48 (As of Jun. 2024)


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What is Koh Brothers Eco Engineering 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). Koh Brothers Eco Engineering's Degree of Financial Leverage for the quarter that ended in Jun. 2024 was 0.48. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Koh Brothers Eco Engineering's Degree of Financial Leverage or its related term are showing as below:

SGX:5HV's Degree of Financial Leverage is ranked better than
76.24% of 1654 companies
in the Construction industry
Industry Median: 1.01 vs SGX:5HV: 0.48

Koh Brothers Eco Engineering Degree of Financial Leverage Historical Data

The historical data trend for Koh Brothers Eco Engineering'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.

Koh Brothers Eco Engineering Degree of Financial Leverage Chart

Koh Brothers Eco Engineering Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.71 1.61 0.70 - -

Koh Brothers Eco Engineering Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 - - - - 0.48

Competitive Comparison of Koh Brothers Eco Engineering's Degree of Financial Leverage

For the Engineering & Construction subindustry, Koh Brothers Eco Engineering'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.


Koh Brothers Eco Engineering's Degree of Financial Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Koh Brothers Eco Engineering's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Koh Brothers Eco Engineering's Degree of Financial Leverage falls into.



Koh Brothers Eco Engineering Degree of Financial Leverage Calculation

Koh Brothers Eco Engineering's Degree of Financial Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.005 (Jun. 2024) / -0.003 (Jun. 2023) - 1 )/( -7.831 (Jun. 2024) / -3.275 (Jun. 2023) - 1 )
=0.6667/1.3911
=0.48***

* 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.


Koh Brothers Eco Engineering  (SGX:5HV) 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.


Koh Brothers Eco Engineering Degree of Financial Leverage Related Terms

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Koh Brothers Eco Engineering Business Description

Traded in Other Exchanges
N/A
Address
15 Genting Road, Singapore, SGP, 349493
Koh Brothers Eco Engineering Ltd is an investment holding company. The company operates in two segments: Engineering & Construction and Bio-Refinery & Renewable Energy. Its business activities include EPC services for construction and civil engineering projects and services to the edible oil industry, including the EPC and commissioning of edible oil refining plants, turnkey outside-battery-limits infrastructure engineering, downstream high-value niche processes and products, and specialty products. Its majority of revenue comes from the Engineering & Construction segment. Its geographical segments are Singapore, Malaysia, Indonesia, South America, Africa and others, of which the majority of its revenue comes from Singapore.

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