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Borges Agricultural & Industrial Nuts (XMAD:BAIN) Degree of Financial Leverage : 14.31 (As of May. 2024)


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What is Borges Agricultural & Industrial Nuts 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). Borges Agricultural & Industrial Nuts's Degree of Financial Leverage for the quarter that ended in May. 2024 was 14.31. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Borges Agricultural & Industrial Nuts's Degree of Financial Leverage or its related term are showing as below:

XMAD:BAIN's Degree of Financial Leverage is ranked worse than
98.55% of 1866 companies
in the Consumer Packaged Goods industry
Industry Median: 1 vs XMAD:BAIN: 14.31

Borges Agricultural & Industrial Nuts Degree of Financial Leverage Historical Data

The historical data trend for Borges Agricultural & Industrial Nuts'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.

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Borges Agricultural & Industrial Nuts Degree of Financial Leverage Chart

Borges Agricultural & Industrial Nuts 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 1.47 3.66 1.13 47.69 14.31

Borges Agricultural & Industrial Nuts Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 1.13 1.10 47.69 -0.53 14.31

Competitive Comparison of Borges Agricultural & Industrial Nuts's Degree of Financial Leverage

For the Farm Products subindustry, Borges Agricultural & Industrial Nuts'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.


Borges Agricultural & Industrial Nuts's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Borges Agricultural & Industrial Nuts's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Borges Agricultural & Industrial Nuts's Degree of Financial Leverage falls into.



Borges Agricultural & Industrial Nuts Degree of Financial Leverage Calculation

Borges Agricultural & Industrial Nuts's Degree of Financial Leverage for the quarter that ended in May. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.91 (May. 2024) / -0.11 (May. 2023) - 1 )/( -0.501 (May. 2024) / -1.423 (May. 2023) - 1 )
=-9.2727/-0.6479
=14.31***

* 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.


Borges Agricultural & Industrial Nuts  (XMAD:BAIN) 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.


Borges Agricultural & Industrial Nuts Degree of Financial Leverage Related Terms

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Borges Agricultural & Industrial Nuts Business Description

Traded in Other Exchanges
N/A
Address
Calle Flix, 29, Reus, ESP, 43205
Borges Agricultural & Industrial Nuts SA grows, produces, processes, packages, sales, and exports dried fruits and nuts. It offers peanuts, almonds, pistachios, walnuts, hazelnuts, cashew nuts, pecans, macadamia nuts, pine nuts and tiger nuts, and others; and dried apricots, dates, prunes, coconut, papaya, pineapple, cranberries and raisins, and others.

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