What is Cytec Industries 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).
Cytec Industries's Degree of Financial Leverage for the quarter that ended in Sep. 2015 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Cytec Industries's Degree of Financial Leverage or its related term are showing as below:
CYT's Degree of Financial Leverage is not ranked *
in the Chemicals industry.
Industry Median: 1.02 * Ranked among companies with meaningful Degree of Financial Leverage only.
Cytec Industries Degree of Financial Leverage Historical Data
The historical data trend for Cytec Industries'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.
Cytec Industries Degree of Financial Leverage Chart
Competitive Comparison of Cytec Industries's Degree of Financial Leverage
For the Specialty Chemicals subindustry, Cytec Industries'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.
Cytec Industries's Degree of Financial Leverage Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cytec Industries's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Cytec Industries's Degree of Financial Leverage falls into.
Cytec Industries Degree of Financial Leverage Calculation
Cytec Industries's Degree of Financial Leverage for the quarter that ended in Sep. 2015 is calculated as:
* 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.
Cytec Industries (NYSE:CYT) 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.
Cytec Industries Degree of Financial Leverage Related Terms
Thank you for viewing the detailed overview of Cytec Industries's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Cytec Industries (Cytec Industries) Business Description
Cytec Industries Inc was incorporated as an independent public company in Delaware in December 1993. It is a specialty materials and chemicals company. Its products serve a diverse range of end markets including aerospace and industrial materials, mining and plastics. Its segments include Aerospace Materials, Industrial Materials, In Process Separation, and Additive Technologies. Its Aerospace Materials segment is a provider of technologically advanced materials for aerospace markets. Its product lines are Advanced composites, Structural and film adhesives, and Carbon fibers. It markets Aerospace Materials products and services directly to its customers using sales and technical support team. It is a supplier for military fixed wing programs, such as the F-35 Joint Strike Fighter and F-18 fighter jet programs, where advanced composites generally account for a higher percentage of structural weight. Advanced composites are exceptionally strong and lightweight materials (prepregs and resin infusion systems) it manufactures from high performance fibers (like carbon fiber) with epoxy, bismaleimide, phenolic, polyimide and other resins formulated or purchased by the Company. Structural and film adhesives are used for bonding and surfacing both metal and composite aircraft components. It also manufactures specialty adhesive forms for complex composites assemblies, such as honeycomb and sandwich structures and special surfacing films to provide aircraft lightning strike protection. It began construction on a new standard modulus carbon fiber line in South Carolina in early 2008. Its Industrial Materials segment provides Structural materials and Process materials. In Industrial Materials, it markets its products through a direct sales force for the structural materials and process materials product lines. Structural materials product line includes the development, manufacturing and supply of advanced composite materials for a diverse range of industries such as motorsports, automotive, defense, rail, tooling, recreation, alternative energy and other markets. Process materials product line includes the development, manufacture, and supply of vacuum bagging and other process materials to the composites industry and other markets, providing a wide range of materials and technical support to a growing number of international customers. Its In Process Separation segment provides Mining chemicals, and Phosphines. It markets In Process Separation chemicals through specialized sales and technical service staffs for each of its product lines. Mining chemicals product line is primarily used in applications to separate desired minerals from host ores. Phosphine specialties are utilized for a variety of applications. Its Additive Technologies segment provides Polymer additives, Specialty additives, and Formulated resins. It markets Additive Technologies chemicals through specialized sales and technical service staffs for each of its product lines. I
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