ALSN has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
ALSN has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Allison Transmission Holdings's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.68. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Allison Transmission Holdings's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Allison Transmission Holdings'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.
Allison Transmission Holdings Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | -1.05 | 1.14 | 1.94 | 3.14 | 1.54 |
Allison Transmission Holdings 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 | 2.43 | 2.07 | 1.75 | 1.54 | 1.68 |
For the Auto Parts subindustry, Allison Transmission Holdings'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.
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Degree of Financial Leverage falls into.
Allison Transmission Holdings'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 |
= | ( 7.49 (Mar. 2024) / 6.08 (Mar. 2023) - 1 ) | / | ( 923 (Mar. 2024) / 811 (Mar. 2023) - 1 ) | |
= | 0.2319 | / | 0.1381 | |
= | 1.68*** |
* 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.
Allison Transmission Holdings (NYSE:ALSN) 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.
Thank you for viewing the detailed overview of Allison Transmission Holdings's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
John Coll | officer: SVP, Global MSS | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
G Frederick Bohley | officer: SVP, CFO & Treasurer | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
Niekerk Teresa Van | officer: VP, Global Purchasing & SQ | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
Ryan A. Milburn | officer: VP, Product Engineering | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
Thomas Eifert | officer: VP, Program Mgmt & Prod Pln | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
Eric C. Scroggins | officer: VP, Gen. Counsel and Secretary | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
David S. Graziosi | officer: Exec VP, CFO and Treasurer | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
Gustave Perna | director | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
Philip J Christman | director | 3240 S. CENTRAL AVENUE, CICERO IL 60804 |
Krishna Shivram | director | C/O WEATHERFORD INTERNATIONAL PLC, 2000 ST JAMES PLACE, HOUSTON TX 77056 |
Sasha Ostojic | director | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
D. Scott Barbour | director | C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026 |
Rafael Basso | officer: VP, Operations | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
Carolann I Haznedar | director | 350 POPLAR CHURCH ROAD, CAMP HILL PA 17011 |
Dana Jh Pittard | officer: VP, Defense Programs | ONE ALLISON WAY, INDIANAPOLIS IN 46222 |
From GuruFocus
By Business Wire • 08-16-2023
By GuruFocus Research • 10-30-2023
By GuruFocus Research • 10-26-2023
By Business Wire • 10-06-2023
By Business Wire • 09-06-2023
By GuruFocus Research • 10-25-2023
By Business Wire • 01-23-2024
By Business Wire • 07-26-2023
By Stavros Georgiadis, CFA • 06-13-2023
By Business Wire • 11-02-2023
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.