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Wens Foodstuff Group Co (SZSE:300498) Degree of Financial Leverage : 1.23 (As of Mar. 2024)


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What is Wens Foodstuff Group Co 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). Wens Foodstuff Group Co's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.23. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Wens Foodstuff Group Co's Degree of Financial Leverage or its related term are showing as below:

SZSE:300498's Degree of Financial Leverage is ranked worse than
66.9% of 1834 companies
in the Consumer Packaged Goods industry
Industry Median: 1 vs SZSE:300498: 1.23

Wens Foodstuff Group Co Degree of Financial Leverage Historical Data

The historical data trend for Wens Foodstuff Group Co'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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Wens Foodstuff Group Co Degree of Financial Leverage Chart

Wens Foodstuff Group Co Annual Data
Trend Dec14 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 1.10 1.05 1.16 0.85 1.31

Wens Foodstuff Group Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.89 0.87 0.37 1.31 1.23

Competitive Comparison of Wens Foodstuff Group Co's Degree of Financial Leverage

For the Farm Products subindustry, Wens Foodstuff Group Co'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.


Wens Foodstuff Group Co's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Wens Foodstuff Group Co's Degree of Financial Leverage falls into.



Wens Foodstuff Group Co Degree of Financial Leverage Calculation

Wens Foodstuff Group Co's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.737 (Mar. 2024) / 0.979 (Mar. 2023) - 1 )/( -3563.424 (Mar. 2024) / 8404.813 (Mar. 2023) - 1 )
=-1.7528/-1.424
=1.23***

* 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.


Wens Foodstuff Group Co  (SZSE:300498) 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.


Wens Foodstuff Group Co Degree of Financial Leverage Related Terms

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


Wens Foodstuff Group Co (SZSE:300498) Business Description

Traded in Other Exchanges
N/A
Address
No. 9, Dongdi North Road, Xincheng Town, Xinxing County, Guangdong Province, Yunfu, CHN, 527400
Wens Foodstuff Group Co Ltd operates as a livestock and poultry farming company in China. The company offers fresh meat products and processed products, including chicken, pig, duck, milk, egg, cooked chicken, deep-sea fish, sheep, pigeons, and other products. It also provides raw milk; and finished milk, such as pasteurized milk, fermented milk, sterilized milk, milk-containing beverages, and other various categories of products.
Executives
Mei Jin Fang Directors, executives
Lin Jian Xing Executives
Liang Zhi Xiong Directors, executives
Zhang Xiang Bin Executives
Li Shao Song Directors, executives
Zhao Liang Director
Qin Kai Tian Director
Chen Xiao Jian Executives
Wen Peng Cheng Director
Chen Feng Executives
Yan Ju Ran Director
Wen Xiao Qiong Directors, executives
Luo Xu Fang Executives
Yan Ju Neng Director
Chen Rui Ai Executives

Wens Foodstuff Group Co (SZSE:300498) Headlines

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