GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Aztech Global Ltd (SGX:8AZ) » Definitions » Degree of Financial Leverage

Aztech Global (SGX:8AZ) Degree of Financial Leverage : 0.94 (As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is Aztech Global 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). Aztech Global's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.94. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

SGX:8AZ's Degree of Financial Leverage is ranked better than
55.23% of 2437 companies
in the Hardware industry
Industry Median: 0.99 vs SGX:8AZ: 0.94

Aztech Global Degree of Financial Leverage Historical Data

The historical data trend for Aztech Global'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.

Aztech Global Degree of Financial Leverage Chart

Aztech Global Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial 0.98 0.84 1.47 2.80 0.94

Aztech Global Quarterly Data
Dec17 Dec18 Sep19 Dec19 Jun20 Sep20 Dec20 Jun21 Sep21 Dec21 Jun22 Sep22 Dec22 Jun23 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 1.50 2.80 1.80 0.94 -

Competitive Comparison of Aztech Global's Degree of Financial Leverage

For the Electronic Components subindustry, Aztech Global'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.


Aztech Global's Degree of Financial Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Aztech Global's Degree of Financial Leverage distribution charts can be found below:

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



Aztech Global Degree of Financial Leverage Calculation

Aztech Global'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
=( 0.13 (Dec. 2023) / 0.087 (Dec. 2022) - 1 )/( 124.811 (Dec. 2023) / 81.661 (Dec. 2022) - 1 )
=0.4943/0.5284
=0.94***

* 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.


Aztech Global  (SGX:8AZ) 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.


Aztech Global Degree of Financial Leverage Related Terms

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


Aztech Global (SGX:8AZ) Business Description

Industry
Traded in Other Exchanges
N/A
Address
No 01-05, 31 Ubi Road 1, Singapore, SGP, 408694
Aztech Global Ltd is an investment holding company. Its key products can be broadly categorized into the three modes such as IoT Devices and Data-communication products; LED lighting products; and Other electrical products. The Group has two reportable segments which include the manufacturing segment and the distribution and trading segment. The manufacturing segment manufactures and sells electronic products for its customers including related corporations. The distribution and trading segment sells electronic products to its customers including related corporations. Geographically, the group generates the majority of its revenue from the North American region.

Aztech Global (SGX:8AZ) Headlines

No Headlines