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Datasea (Datasea) Degree of Financial Leverage : 0.00 (As of Dec. 2023)


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What is Datasea 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). Datasea's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

DTSS's Degree of Financial Leverage is not ranked *
in the Software industry.
Industry Median: 0.99
* Ranked among companies with meaningful Degree of Financial Leverage only.

Datasea Degree of Financial Leverage Historical Data

The historical data trend for Datasea'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.

Datasea Degree of Financial Leverage Chart

Datasea Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Degree of Financial Leverage
Get a 7-Day Free Trial -1.54 0.47 1.00 0.36 13.11

Datasea 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 -35.89 -42.96 13.11 10.66 -

Competitive Comparison of Datasea's Degree of Financial Leverage

For the Software - Infrastructure subindustry, Datasea'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.


Datasea's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Datasea's Degree of Financial Leverage distribution charts can be found below:

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



Datasea Degree of Financial Leverage Calculation

Datasea'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
=( -14.861 (Dec. 2023) / -14.85 (Dec. 2022) - 1 )/( -9.501 (Dec. 2023) / -5.943 (Dec. 2022) - 1 )
=0.0007/0.5987
=0.00***

* 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.


Datasea  (NAS:DTSS) 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.


Datasea Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Datasea's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Datasea (Datasea) Business Description

Industry
Traded in Other Exchanges
Address
1 Ronghua South Road, 20th Floor, Tower B, Guorui Plaza, Technological Development Zone, Beijing, CHN, 100176
Datasea Inc is a development stage company engaged in Internet security products. Its offers service and products such as Internet Security Equipment, New Media Advertising Service, Micro Marketing Service, Internet Service Provider (ISP) Connecting Service, Big Data Processing Service. The business activity of the group functions through China.
Executives
Yan Yang director RM 112, DRAGON COURT, 100 WATERLOO ROAD, KOWLOON K3 NONE
Chunqi Jiao officer: CTO 130 CHIANGJIANG ROAD, NANGANG DISTRICT, HARBIN F4 150090
Fu Liu director, 10 percent owner 1 XINGHUO RD, CHANGNING BUILDING, STE 21BC1, FENGTAI DISTRICT, BEIJING F4 100070
Zhixin Liu director, 10 percent owner, officer: CEO 1 XINGHUO RD, CHANGNING BUILDING, STE, 21BC1, FENGTAI DISTRICT, BEIJING F4 100070
Chun Kwok Wong director 1 XINGHUO RD CHANGNING BLDG, 11TH FLOOR FENGTAI DISTRICT, BEIJING F4 100070
Mingzhou Sun officer: Chief Financial Officer 20TH FLOOR, TOWER B, GUORUI PLAZA, 1 RONGHUA S. RD, TECHNOLOGICAL DEVT ZONE, BEIJING F4 100176
Michael J. Antonoplos director 345 STRATHMORE DRIVE, BRYN MAWR PA 19010-1262
Ling Wang director 1 XINGHUO RD CHANGNING BLDG, 11TH FLOOR FENGTAI DISTRICT, BEIJING F4 100070
Tongjun Si director 1 XINGHUO RD CHANGNING BLDG, 11TH FLOOR FENGTAI DISTRICT, BEIJING F4 100070
Jijin Zhang officer: Chief Financial Officer 1 XINGHUO RD. CHANGNING BUILDING, 11TH FLOOR FENGTAI DISTRICT, BEIJING F4 100070