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HCI Group (HCI Group) Degree of Financial Leverage : 0.53 (As of Mar. 2024)


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What is HCI Group 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). HCI Group's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.53. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

HCI's Degree of Financial Leverage is ranked better than
72.25% of 346 companies
in the Insurance industry
Industry Median: 0.955 vs HCI: 0.53

HCI Group Degree of Financial Leverage Historical Data

The historical data trend for HCI Group'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.

HCI Group Degree of Financial Leverage Chart

HCI Group 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 6.51 2.34 1.43 5.37 0.70

HCI Group 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 -2.44 -5.98 0.75 0.70 0.53

Competitive Comparison of HCI Group's Degree of Financial Leverage

For the Insurance - Property & Casualty subindustry, HCI Group'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.


HCI Group's Degree of Financial Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, HCI Group's Degree of Financial Leverage distribution charts can be found below:

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



HCI Group Degree of Financial Leverage Calculation

HCI Group'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
=( 9.83 (Mar. 2024) / -4.98 (Mar. 2023) - 1 )/( 183.327 (Mar. 2024) / -39.44 (Mar. 2023) - 1 )
=-2.9739/-5.6483
=0.53***

* 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.


HCI Group  (NYSE:HCI) 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.


HCI Group Degree of Financial Leverage Related Terms

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


HCI Group (HCI Group) Business Description

Traded in Other Exchanges
Address
3802 Coconut Palm Drive, Tampa, FL, USA, 33619
HCI Group Inc is primarily engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company (HCPCI) and TypTap Insurance Company (TypTap). Both HCPCI and TypTap are authorized to underwrite various homeowners' property and casualty insurance products and allied lines business in the state of Florida and other states. The operating segments of the group are HCPCI insurance operations, TypTap Group, Real estate operations, and Corporate and other. It derives key revenue from the HCPCI Insurance operation segment.
Executives
James Mark Harmsworth officer: Chief Financial Officer 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607
Lauren L Valiente director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Susan Watts director 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607
Andrew L. Graham officer: VP/Corporate Secretary 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Robert Wayne Burks director 1009 S STERLING AVENUE, TAMPA FL 33629
Paresh Patel director 1520 GULF BLVD., APT. 1706, CLEARWATER FL 33767
Peter Politis director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Gregory Politis director 965 SOUTH BAYSHORE BLVD., SAFETY HARBOR FL 34695
Eric Brandon Hoffman director C/O INTREPID GROUP HOLDINGS, LLC, ONE STAMFORD PLAZA, 263 TRESSER BLVD., STAMFORD CT 06901
George Apostolou director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Anthony Saravanos director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Karin Sue Coleman officer: Executive Vice President 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607
James J Macchiarola director 3671 EXECUTIVE DRIVE, PALM HARBOR FL 34685
Loreen M Spencer director 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607
Harish M Patel director 7620 PARADISE POINT CIRCLE SOUTH, ST. PETERSBURG FL 33711