GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Kim Hin Joo (Malaysia) Bhd (XKLS:0210) » Definitions » Degree of Financial Leverage

Kim Hin Joo (Malaysia) Bhd (XKLS:0210) Degree of Financial Leverage : 1.16 (As of Dec. 2023)


View and export this data going back to 2019. Start your Free Trial

What is Kim Hin Joo (Malaysia) Bhd 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). Kim Hin Joo (Malaysia) Bhd's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.16. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Kim Hin Joo (Malaysia) Bhd's Degree of Financial Leverage or its related term are showing as below:

XKLS:0210's Degree of Financial Leverage is ranked worse than
59.41% of 1079 companies
in the Retail - Cyclical industry
Industry Median: 1.03 vs XKLS:0210: 1.16

Kim Hin Joo (Malaysia) Bhd Degree of Financial Leverage Historical Data

The historical data trend for Kim Hin Joo (Malaysia) Bhd'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.

Kim Hin Joo (Malaysia) Bhd Degree of Financial Leverage Chart

Kim Hin Joo (Malaysia) Bhd Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only 3.20 1.25 1.40 -10.68 1.16

Kim Hin Joo (Malaysia) Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -10.68 -105.29 1.06 1.14 1.16

Competitive Comparison of Kim Hin Joo (Malaysia) Bhd's Degree of Financial Leverage

For the Specialty Retail subindustry, Kim Hin Joo (Malaysia) Bhd'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.


Kim Hin Joo (Malaysia) Bhd's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Kim Hin Joo (Malaysia) Bhd's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Kim Hin Joo (Malaysia) Bhd's Degree of Financial Leverage falls into.



Kim Hin Joo (Malaysia) Bhd Degree of Financial Leverage Calculation

Kim Hin Joo (Malaysia) Bhd'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
=( -0.002 (Dec. 2023) / 0.013 (Dec. 2022) - 1 )/( 0.044 (Dec. 2023) / 7.628 (Dec. 2022) - 1 )
=-1.1538/-0.9942
=1.16***

* 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.


Kim Hin Joo (Malaysia) Bhd  (XKLS:0210) 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.


Kim Hin Joo (Malaysia) Bhd Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Kim Hin Joo (Malaysia) Bhd's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Kim Hin Joo (Malaysia) Bhd (XKLS:0210) Business Description

Traded in Other Exchanges
N/A
Address
Jalan Perindustrian Balakong Jaya 1 /3, Lot 5205C, Wisma Pang Cheng Yean, Kawasan Perindustrian Balakong Jaya, Seri Kembangan, SGR, MYS, 43300
Kim Hin Joo (Malaysia) Bhd is principally involved in the retail and distribution of baby, children, and maternity products. The firm operates through two segments. The Retail segment engages in the retailing of babies, children, and maternity products. The Distribution segment comprises of distribution of children and maternity products. The group operates primarily in Malaysia.

Kim Hin Joo (Malaysia) Bhd (XKLS:0210) Headlines

No Headlines