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Tandou (Tandou) Degree of Financial Leverage : 0.00 (As of Dec. 2014)


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What is Tandou 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). Tandou's Degree of Financial Leverage for the quarter that ended in Dec. 2014 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TDUFF's Degree of Financial Leverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Financial Leverage only.

Tandou Degree of Financial Leverage Historical Data

The historical data trend for Tandou'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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Tandou Degree of Financial Leverage Chart

Tandou Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Jun12 Jun13 Jun14
Degree of Financial Leverage
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Tandou Semi-Annual Data
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Competitive Comparison of Tandou's Degree of Financial Leverage

For the Farm Products subindustry, Tandou'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.


Tandou's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

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

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



Tandou Degree of Financial Leverage Calculation

Tandou's Degree of Financial Leverage for the quarter that ended in Dec. 2014 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.013 (Dec. 2014) / 0.041 (Dec. 2013) - 1 )/( -0.624 (Dec. 2014) / 9.9 (Dec. 2013) - 1 )
=-1.3171/-1.063
=1.24***

* 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.


Tandou  (OTCPK:TDUFF) 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.


Tandou Degree of Financial Leverage Related Terms

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Tandou (Tandou) Business Description

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Address
Tandou Ltd is an Australia based company produces and sells irrigated cotton and cereal crops. Business activity of the firm is operated with two segments namely Farming and Water Operations. The Farming operation comprises of the production of crops (upland cotton and cereal) for sale in Australian and international markets as well as pastoral activities relating to sheep and cattle. The Water operation segment includes the trading of permanent water entitlements and temporary water allocations. In addition, it is also involved in the Production of livestock at Tandou Farm. Tandou derives the majority of revenue from the farming segment.

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