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Chico's FAS (Chico's FAS) Degree of Financial Leverage : 0.00 (As of Oct. 2023)


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

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

CHS's Degree of Financial Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.03
* Ranked among companies with meaningful Degree of Financial Leverage only.

Chico's FAS Degree of Financial Leverage Historical Data

The historical data trend for Chico's FAS'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.

Chico's FAS Degree of Financial Leverage Chart

Chico's FAS Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.94 1.10 1.00 0.94 1.21

Chico's FAS Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
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 -6.40 1.21 1.02 -9.33 -

Competitive Comparison of Chico's FAS's Degree of Financial Leverage

For the Apparel Retail subindustry, Chico's FAS'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.


Chico's FAS's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Chico's FAS's Degree of Financial Leverage distribution charts can be found below:

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



Chico's FAS Degree of Financial Leverage Calculation

Chico's FAS's Degree of Financial Leverage for the quarter that ended in Oct. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.91 (Oct. 2023) / 0.91 (Oct. 2022) - 1 )/( 117.331 (Oct. 2023) / 151.749 (Oct. 2022) - 1 )
=0/-0.2268
=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.


Chico's FAS  (NYSE:CHS) 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.


Chico's FAS Degree of Financial Leverage Related Terms

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


Chico's FAS (Chico's FAS) Business Description

Traded in Other Exchanges
N/A
Address
11215 Metro Parkway, Fort Myers, FL, USA, 33966
Chico's FAS Inc is an apparel retailer with a portfolio of private-label brands that sell women's clothing and accessories. Brands include Chico's, White House/Black Market, and Soma Intimates. The majority of revenue is derived from Chico's brand. The brands generally target the needs of fashion-savvy women with moderate-to-high household income levels. It sells directly to the consumer through its retail stores, websites, and telephone call centers. The company sources the majority of its product from foreign manufacturers and distributes all products from its distribution center in Georgia.
Executives
Bonnie R. Brooks director 6301 FITCH PATH, NEW ALBANY OH 43054
Eli Kumekpor director 11215 METRO PARKWAY, FORT MYERS FL 33966
Patrick J Guido officer: EVP - Chief Financial Officer C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
Wendy L Hufford officer: SVP - General Counsel C/O ASCENA RETAIL GROUP, INC., 933 MACARTHUR BOULEVARD, MAHWAH NJ 07430
Kevin Mansell director C/O KOHLS LEGAL, N56 W170000 RIDGEWOOD DR, MENOMONEE FALLS WI 53051
Topper Joseph R. Jr. officer: EVP - Chief Digital Officer 3113 WOODCREEK DR., DOWNERS GROVE IL 60515
Kristin Gwinner officer: SVP, Human Resources 11215 METRO PARKWAY, FORT MYERS FL 33966
Gregory S Baker officer: SVP & General Counsel 11215 METRO PARKWAY, FORT MYERS FL 33966
Molly Langenstein officer: President, Apparel Group C/O MACY'S, INC., 7 WEST SEVENTH STREET, CINCINNATI OH 45202
David F Walker director 14388 EAGLE POINTE DR, CLEARWATER FL 337622214
David M Oliver officer: Chief Accounting Officer 10930 SPOON RIDGE, EDEN PRAIRIE MN 55347
Stephen E Watson director 700 PILGRIM WAY, GREENBAY WI 54304
Deborah Kerr director 901 MARQUETTE AVENUE, SUITE 3200, MINNEAPOLIS MN 55402
Jennifer L Ellis officer: Interim CFO 11215 METRO PKWY, FORT MYERS FL 33966
Kimberly Roy Tofalli director C/O WEIGHT WATCHERS INTERNATIONAL, INC., 11 MADISON AVENUE, 17TH FLOOR, NEW YORK NY 10010