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Shanxi Coking Coal Energy Group Co (SZSE:000983) Degree of Financial Leverage : 1.25 (As of Mar. 2025)


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What is Shanxi Coking Coal Energy Group Co 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). Shanxi Coking Coal Energy Group Co's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 1.25. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Shanxi Coking Coal Energy Group Co's Degree of Financial Leverage or its related term are showing as below:

SZSE:000983's Degree of Financial Leverage is ranked worse than
67.25% of 171 companies
in the Other Energy Sources industry
Industry Median: 1.04 vs SZSE:000983: 1.25

Shanxi Coking Coal Energy Group Co Degree of Financial Leverage Historical Data

The historical data trend for Shanxi Coking Coal Energy Group Co'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.

Shanxi Coking Coal Energy Group Co Degree of Financial Leverage Chart

Shanxi Coking Coal Energy Group Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.91 0.81 0.95 1.20 1.13

Shanxi Coking Coal Energy Group Co 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 1.15 1.15 1.03 1.13 1.25

Competitive Comparison of Shanxi Coking Coal Energy Group Co's Degree of Financial Leverage

For the Thermal Coal subindustry, Shanxi Coking Coal Energy Group Co'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.


Shanxi Coking Coal Energy Group Co's Degree of Financial Leverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Shanxi Coking Coal Energy Group Co's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Shanxi Coking Coal Energy Group Co's Degree of Financial Leverage falls into.


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Shanxi Coking Coal Energy Group Co Degree of Financial Leverage Calculation

Shanxi Coking Coal Energy Group Co'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
=( 0.5 (Mar. 2025) / 0.921 (Mar. 2024) - 1 )/( 6241.21 (Mar. 2025) / 9819.477 (Mar. 2024) - 1 )
=-0.4571/-0.3644
=1.25***

* 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.


Shanxi Coking Coal Energy Group Co  (SZSE:000983) 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.


Shanxi Coking Coal Energy Group Co Degree of Financial Leverage Related Terms

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


Shanxi Coking Coal Energy Group Co Business Description

Traded in Other Exchanges
N/A
Address
No 318 West Mine Street, Xishan Building, Shanxi province, Taiyuan, CHN, 030053
Shanxi Coking Coal Energy Group Co Ltd is a China-based company engaged in coal sales, washing, and processing; power business: power generation and supply; power supply: power purchase and sales; power facility transportation and repair; sales of power equipment and accessories; equipment cleaning; cleaning services; Technology development, technology transfer, technical consulting; laboratory testing; mechanical and electrical repair; general mechanical processing; energy-saving transformation; new energy management; mine development, design and construction; mining and power equipment production and operation; mineral resource mining: coal mining.
Executives
Wan Xiao Li Supervisors
He Zhi Hong Executives
Li Xing Ren Director
Guo Fu Zhong Director
Wang Li Jie Director
Wang Yu Bao Director
Wang Jing Ying Securities Affairs Representative
Cui Min Xuan Director
Zhang Yi Director
Wang Ke Jun Executives
Li Qun Executives
Zhang Neng Hu Director
Xia Su Ping Director

Shanxi Coking Coal Energy Group Co Headlines

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