GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Shineco Inc (NAS:SISI) » Definitions » Degree of Financial Leverage

SISI (Shineco) Degree of Financial Leverage : -0.40 (As of Mar. 2025)


View and export this data going back to 2016. Start your Free Trial

What is Shineco 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). Shineco's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was -0.40. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

SISI's Degree of Financial Leverage is ranked better than
88.07% of 1870 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs SISI: -0.40

Shineco Degree of Financial Leverage Historical Data

The historical data trend for Shineco'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.

Shineco Degree of Financial Leverage Chart

Shineco Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.97 0.82 0.99 -1.38 -0.09

Shineco Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.05 -0.09 0.11 0.22 -0.40

Competitive Comparison of Shineco's Degree of Financial Leverage

For the Farm Products subindustry, Shineco'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.


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

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

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


;
;

Shineco Degree of Financial Leverage Calculation

Shineco's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -140.72 (Mar. 2025) / -329.619 (Mar. 2024) - 1 )/( -33.207 (Mar. 2025) / -13.576 (Mar. 2024) - 1 )
=-0.5731/1.446
=-0.40***

* 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.


Shineco  (NAS:SISI) 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.


Shineco Degree of Financial Leverage Related Terms

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


Shineco Business Description

Traded in Other Exchanges
N/A
Address
No. 88, Jianguo Road, Room 1707, Block D, Modern City SOHO, Chaoyang District, Beijing, CHN, 100022
Shineco Inc aims to care for a healthy life and improve the quality of life by providing safe, efficient, and high-quality health products and services to society. The company has researched and developed various vitro diagnostic reagents and related medical devices to date, and it also produces and sells healthy and nutritious food.
Executives
Aamir Ali Quraishi director 112 EVELYN AVENUE, RUISLIP, LONDON X0 HA4 8AQ
Shanchun Huang 10 percent owner PUDONG BUILDING, 2ND FLOOR,, JIULONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU F4 363000
Xiqiao Liu director, officer: COO ROOM 504, UNIT1, BUILDING 7, HONGRENJIAY, MAJUQIAO, TONGZHOU DISTRICT, BEIJING F4 101149
Hu Li director ROOM 1001, BUILDING T5, DAZU SQUARE, DAXING DISTRICT, BEIJING F4 100176
Jennifer Zhan director, officer: CEO & Executive Director ROOM 3106, BUILDING B,, JIANWAI SOHO, CHAOYANG DISTRICT,, BEIJING CITY F4 100022
Minye Wang director BUILDING 23, HAI YUE HUA YUAN, KUNMING F4 530000
Lei Gao director ROOM 806, WANSHOU HOTEL, NO. A12 WANSHOU ROAD, HAIDIAN DISTRICT, BEIJING F4 100017
Ou Yang officer: Chief Executive Officer BUILDING NO. 5, 8 WORKERS SPORTS COMPLEX NORTH ROAD, BEIJING F4 100009
Hua Yang director 2ND FLOOR, WANYUAN BUSINESS CENTER, 10 HONGDA RD, YIZHUANG, DAXING DISTRICT, BEIJING F4 100176
Yuying Zhang director, 10 percent owner, officer: Chair of the Board, CEO 2ND FLOOR, WANYUAN BUSINESS CENTER, 10 HONGDA RD, YIZHUANG, DAXING DISTRICT, BEIJING F4 100176
Leiger Yongmin Yang director 2ND FLOOR, WANYUAN BUSINESS CENTER, 10 HONGDA RD, YIZHUANG, DAXING DISTRICT, BEIJING F4 100176
Jiping Chen director, 10 percent owner 2ND FLOOR, WANYUAN BUSINESS CENTER, 10 HONGDA RD, YIZHUANG, DAXING DISTRICT, BEIJING F4 100176
Sai Sam Wang officer: Chief Financial Officer 2ND FLOOR, WANYUAN BUSINESS CENTER, 10 HONGDA RD, YIZHUANG, DAXING DISTRICT, BEIJING F4 100176
Shujuan Ji director 2ND FLOOR, WANYUAN BUSINESS CENTER, 10 HONGDA RD, YIZHUANG, DAXING DISTRICT, BEIJING F4 100176
Weixing Yin director ROOM 3106, BUILDING B, 39 E. 3RD RING, MIDDLE RD, CHAOYANG DISTRICT, BEIJING F4 1000022