GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Bionoid Pharma Inc (OTCPK:BINP) » Definitions » Degree of Financial Leverage

Bionoid Pharma (Bionoid Pharma) Degree of Financial Leverage : 0.00 (As of Mar. 2011)


View and export this data going back to 2007. Start your Free Trial

What is Bionoid Pharma 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). Bionoid Pharma's Degree of Financial Leverage for the quarter that ended in Mar. 2011 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BINP's Degree of Financial Leverage is not ranked *
in the Drug Manufacturers industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Financial Leverage only.

Bionoid Pharma Degree of Financial Leverage Historical Data

The historical data trend for Bionoid Pharma'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.

Bionoid Pharma Degree of Financial Leverage Chart

Bionoid Pharma Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10
Degree of Financial Leverage
- - - - -

Bionoid Pharma Quarterly Data
Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11
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 - - - - -

Competitive Comparison of Bionoid Pharma's Degree of Financial Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Bionoid Pharma'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.


Bionoid Pharma's Degree of Financial Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Bionoid Pharma's Degree of Financial Leverage distribution charts can be found below:

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



Bionoid Pharma Degree of Financial Leverage Calculation

Bionoid Pharma's Degree of Financial Leverage for the quarter that ended in Mar. 2011 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -675 (Mar. 2011) / -400 (Mar. 2010) - 1 )/( -9.076 (Mar. 2011) / -3.022 (Mar. 2010) - 1 )
=0.6875/2.0033
=0.34***

* 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.


Bionoid Pharma  (OTCPK:BINP) 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.


Bionoid Pharma Degree of Financial Leverage Related Terms

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


Bionoid Pharma (Bionoid Pharma) Business Description

Traded in Other Exchanges
N/A
Address
433 N Camden Dr, Beverly Hills, CA, USA, 90210
Bionoid Pharma Inc is a cannabis company that cultivates, extracts, tests, and distributes organic hemp, cannabinoid, and related products. Its products aid in decreasing pain, improving recovery time, enhancing performance, and enhance physical well-being.