GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Greenpro Capital Corp (NAS:GRNQ) » Definitions » Degree of Financial Leverage

Greenpro Capital (Greenpro Capital) Degree of Financial Leverage : 1.00 (As of Dec. 2023)


View and export this data going back to 2015. Start your Free Trial

What is Greenpro Capital 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). Greenpro Capital's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

GRNQ's Degree of Financial Leverage is ranked better than
51.07% of 1024 companies
in the Business Services industry
Industry Median: 1.01 vs GRNQ: 1.00

Greenpro Capital Degree of Financial Leverage Historical Data

The historical data trend for Greenpro Capital'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.

Greenpro Capital Degree of Financial Leverage Chart

Greenpro Capital Annual Data
Trend Oct14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.03 2.37 -4.25 -0.18 1.00

Greenpro Capital 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 -0.18 3.71 1.01 1.11 1.00

Competitive Comparison of Greenpro Capital's Degree of Financial Leverage

For the Consulting Services subindustry, Greenpro Capital'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.


Greenpro Capital's Degree of Financial Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Greenpro Capital's Degree of Financial Leverage distribution charts can be found below:

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



Greenpro Capital Degree of Financial Leverage Calculation

Greenpro Capital'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
=( 0.14 (Dec. 2023) / -0.81 (Dec. 2022) - 1 )/( 1.057 (Dec. 2023) / -6.26 (Dec. 2022) - 1 )
=-1.1728/-1.1688
=1.00***

* 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.


Greenpro Capital  (NAS:GRNQ) 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.


Greenpro Capital Degree of Financial Leverage Related Terms

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


Greenpro Capital (Greenpro Capital) Business Description

Traded in Other Exchanges
N/A
Address
B-7-5, Northpoint Office, No. 1 Medan Syed Putra Utara, Mid Valley City, Kuala Lumpur, MYS, 59200
Greenpro Capital Corp operates and provides business solution services to small and medium-size businesses located in South-East Asia and East Asia, with focus on Hong Kong, China and Malaysia, and in Thailand and Taiwan. Its range of services includes cross border business solutions, record management services, and accounting outsourcing services. Cross-border business services include,other services, tax planning, trust and wealth management, cross border listing advisory services and transaction services. It also operates a venture capital business. Its segments include Service business engaged in provision of corporate advisory and business solution service; and Real estate business engaged in trading or leasing of commercial real estate properties in Hong Kong and Malaysia.
Executives
Loke Gilbert director, 10 percent owner, officer: Chief Financial Officer SUITE 2201, 22/F MALAYSIA BUILDING,, 50 GLOUCESTER ROAD, WANCHAI K3 00000
Lee C.k. director, 10 percent owner, officer: Chief Executive Officer SUITE 2201, 22/F MALAYSIA BUILDING,, 50 GLOUCESTER ROAD, WANCHAI K3 00000
Chuchottaworn Srirat director SUITE 2201, 22/F, MALAYSIA BUILDING, 50 GLOUCESTER ROAD WAN CHAI K3 00000
Bringuier Christophe Philippe Roland director FLAT 9, BLOCK D, CHING LAI COURT, 264 LAI KING HILL RD, LAI CHI KOK, KOWLOON K3 00000
Brent Lewis Glendening director ROOM 1701-1703, 17/FTHE METROPILIS TOWER, 10 METROPOLIS TOWER, HUNG HOM K3 00000
Ramesh Ruben Louis director RM 1701-03,17F,THE METROPOLIS TOWER, 10 METROPOLIS DRIVE, HUNG HOM K3 00000
Kok Choong How director SUITE 2201, 22/F MALAYSIA BUILDING,, 50, GLOUCESTER ROAD, WANCHAI K3 00000
Chee Keong Hee director SUITE 2201, 22/F, MALAYSIA BUILDING 50, GLOUCESTER ROAD,, WANCHAI K3 000000
Kiew Kwong Chin director SUITE 2201, 22/F MALAYSIA BUILDING, 50 GLOUCESTER ROAD, WANCHAI K3 00000
Albert Shum director SUITE 2201, 22/F MALAYSIA BUILDING, 50 GLOUCESTER ROAD, WANCHAI K3 000000
Thanawat Lertwattanark director SUITE 2201, 22/F, MALAYSIA BUILDING, 50 GLOUCESTER ROAD WAN CHAI K3 00000