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NTPM Holdings Bhd (XKLS:5066) Degree of Financial Leverage : 5.58 (As of Jan. 2025)


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What is NTPM Holdings 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). NTPM Holdings Bhd's Degree of Financial Leverage for the quarter that ended in Jan. 2025 was 5.58. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

XKLS:5066's Degree of Financial Leverage is ranked worse than
94.44% of 1871 companies
in the Consumer Packaged Goods industry
Industry Median: 1.02 vs XKLS:5066: 5.58

NTPM Holdings Bhd Degree of Financial Leverage Historical Data

The historical data trend for NTPM Holdings 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.

NTPM Holdings Bhd Degree of Financial Leverage Chart

NTPM Holdings Bhd Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.43 6.71 1.45 1.69 0.55

NTPM Holdings Bhd Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 -0.76 0.55 -0.28 -1.97 5.58

Competitive Comparison of NTPM Holdings Bhd's Degree of Financial Leverage

For the Household & Personal Products subindustry, NTPM Holdings 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.


NTPM Holdings Bhd's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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NTPM Holdings Bhd Degree of Financial Leverage Calculation

NTPM Holdings Bhd's Degree of Financial Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.009 (Jan. 2025) / 0.006 (Jan. 2024) - 1 )/( 20.623 (Jan. 2025) / 37.337 (Jan. 2024) - 1 )
=-2.5/-0.4477
=5.58***

* 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.


NTPM Holdings Bhd  (XKLS:5066) 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.


NTPM Holdings Bhd Degree of Financial Leverage Related Terms

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NTPM Holdings Bhd Business Description

Traded in Other Exchanges
N/A
Address
No. 886, Jalan Bandar Baru, Sungai Kecil, Seberang Perai Selatan, Nibong Tebal, PNG, MYS, 14300
NTPM Holdings Bhd is a consumer goods and paper company in Malaysia. Through its subsidiaries, it operates in two segments, Tissue Paper segment, and Personal Care segment. The tissue paper segment consists of facial tissue, toilet paper, kitchen towel rolls, and napkins. These products are sold under brands such as Premier, Royal Gold, Cutie, Soft Baby Wipes and Sanitizing Wipes. The personal care segment consists of feminine hygienic products, cotton products, baby diapers, and incontinent products. These products are sold under brands such as Intimate, Diapex, and Premier Cotton. The company generates most of its revenue from the Tissue Paper segment. Geographically the company has a presence in Malaysia, Singapore, Thailand, Vietnam, and Others, the majority is generated from Malaysia.

NTPM Holdings Bhd Headlines

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