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Thermal Energy International (TSXV:TMG) Degree of Financial Leverage : 1.73 (As of Aug. 2024)


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What is Thermal Energy International 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). Thermal Energy International's Degree of Financial Leverage for the quarter that ended in Aug. 2024 was 1.73. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TSXV:TMG's Degree of Financial Leverage is ranked worse than
82.95% of 2938 companies
in the Industrial Products industry
Industry Median: 1.01 vs TSXV:TMG: 1.73

Thermal Energy International Degree of Financial Leverage Historical Data

The historical data trend for Thermal Energy International'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.

Thermal Energy International Degree of Financial Leverage Chart

Thermal Energy International Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.51 0.98 1.34 0.74 1.05

Thermal Energy International Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 0.77 0.69 -0.34 1.05 1.73

Competitive Comparison of Thermal Energy International's Degree of Financial Leverage

For the Pollution & Treatment Controls subindustry, Thermal Energy International'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.


Thermal Energy International's Degree of Financial Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Thermal Energy International's Degree of Financial Leverage distribution charts can be found below:

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



Thermal Energy International Degree of Financial Leverage Calculation

Thermal Energy International's Degree of Financial Leverage for the quarter that ended in Aug. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.006 (Aug. 2024) / 0.008 (Aug. 2023) - 1 )/( 1.554 (Aug. 2024) / 1.817 (Aug. 2023) - 1 )
=-0.25/-0.1447
=1.73***

* 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.


Thermal Energy International  (TSXV:TMG) 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.


Thermal Energy International Degree of Financial Leverage Related Terms

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Thermal Energy International Business Description

Traded in Other Exchanges
Address
36 Antares Drive, Suite 850, Ottawa, ON, CAN, K2E 7W5
Thermal Energy International Inc is a supplier of proprietary, energy efficiency and emissions reduction solutions to the industrial and institutional sectors. It markets, sells, engineers, fabricates, constructs, installs and supports technology lines - heat recovery solutions and condensate return system solutions. The product portfolio consists of GEM steam traps, FLU-ACE - direct contact condensing heat recovery, and Dry Rex - low-temperature biomass drying systems. The operating segment includes geographical areas that reflect the core business which has units located in Ottawa, Canada and Bristol, UK. The firm derives revenue from Canada, the UK, Germany, France, Poland, India, etc and the rest of the world. Substantial sales revenue comes from the USA.
Executives
William Crossland Director, Senior Officer
Isobel Catriona Wales Senior Officer
Robert William Triebe Senior Officer
Samuel Thomas Mawby Senior Officer
Vincent Joseph Sands Senior Officer
William Ollerhead Director
Jie (julia) Zhang Senior Officer
John Brownrigg Kelly Director

Thermal Energy International Headlines

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