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Greenhill (Greenhill) Degree of Financial Leverage : 7.09 (As of Sep. 2023)


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What is Greenhill 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). Greenhill's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 7.09. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

GHL's Degree of Financial Leverage is not ranked
in the Capital Markets industry.
Industry Median: 0.97 vs GHL: 7.09

Greenhill Degree of Financial Leverage Historical Data

The historical data trend for Greenhill'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.

Greenhill Degree of Financial Leverage Chart

Greenhill Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.25 1.51 4.97 2.24 1.46

Greenhill Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 1.31 1.46 2.11 2.72 7.09

Competitive Comparison of Greenhill's Degree of Financial Leverage

For the Capital Markets subindustry, Greenhill'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.


Greenhill's Degree of Financial Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Greenhill's Degree of Financial Leverage distribution charts can be found below:

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



Greenhill Degree of Financial Leverage Calculation

Greenhill's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -1.61 (Sep. 2023) / 0.19 (Sep. 2022) - 1 )/( -10.224 (Sep. 2023) / 30.438 (Sep. 2022) - 1 )
=-9.4737/-1.3359
=7.09***

* 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.


Greenhill  (NYSE:GHL) 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.


Greenhill Degree of Financial Leverage Related Terms

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


Greenhill (Greenhill) Business Description

Traded in Other Exchanges
N/A
Address
1271 Avenue of the Americas, New York, NY, USA, 10020
Greenhill & Co Inc is an independent investment bank that provides financial and strategic advice on significant domestic and cross-border mergers and acquisitions, divestitures, restructurings, financings, capital raising, and other transactions to a diverse client base, including corporations, partnerships, institutions, and governments globally. The company derives revenues from both corporate advisory services related to mergers and acquisitions, financings and restructurings and capital advisory services related to sales or capital raises pertaining to alternative assets.
Executives
Mark Lasky officer: Chief Financial Officer C/O GREENHILL & CO., INC., 1271 AVENUE OF THE AMERICAS, 21ST FLOOR, NEW YORK NY 10020
Rodriguez Harold J Jr officer: Mg Dir-Fin, Regn. & Ops.
Scott L Bok director, officer: Chief Executive Officer
Kevin Ferro director C/O KOS PHARMACEUTICALS, INC., 1001 BRICKELL BAY DRIVE, 25TH FLOOR, MIAMI FL 33131
David Wyles officer: Managing Director GREENHILL & CO. INC., 300 PARK AVENUE, NEW YORK NY 10022-7405
Kevin M Costantino officer: President GREENHILL & CO., 300 PARK AVENUE, NEW YORK NY 10022
Gitanjali Pinto Faleiro officer: General Counsel C/O GREENHILL & CO., INC., 300 PARK AVENUE, NEW YORK NY 10022
Meryl D Hartzband director C/O THE NAVIGATORS GROUP, INC., 400 ATLANTIC STREET, 8TH FLOOR, STAMFORD CT 06901
Robert F Greenhill director, officer: Chairman and CEO
Patricia Moran officer: Chief Legal Officer GREENHILL & CO., 300 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Karen P Robards director 800 SCUDDERS MILL RD, PLAINSBORO NJ 08536
Gavin Dean Solotar officer: General Counsel GREENHILL & CO., 300 PARK AVENUE, NEW YORK NY 10022
Christopher Thomas Grubb officer: Chief Financial Officer 300 PARK AVENUE, 23RD FLOOR, NEW YORK NY 10022
John C Danforth director CERNER CORP, 2800 ROCKCREEK PARKWAY, KANSAS CITY MO 64117-2551
Ulrika Ekman officer: General Counsel GREENHILL & CO., INC., 300 PARK AVENUE, NEW YORK NY 10022