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Invitro International (Invitro International) Degree of Financial Leverage : 0.00 (As of Jun. 1997)


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What is Invitro International 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). Invitro International's Degree of Financial Leverage for the quarter that ended in Jun. 1997 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

IVRO's Degree of Financial Leverage is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 1.06
* Ranked among companies with meaningful Degree of Financial Leverage only.

Invitro International Degree of Financial Leverage Historical Data

The historical data trend for Invitro International'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.

Invitro International Degree of Financial Leverage Chart

Invitro International Annual Data
Trend Feb90 Feb91 Sep92 Sep93 Sep94 Sep95 Sep96
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Invitro International Quarterly Data
Sep92 Dec92 Mar93 Jun93 Sep93 Dec93 Mar94 Jun94 Sep94 Dec94 Mar95 Jun95 Sep95 Dec95 Mar96 Jun96 Sep96 Dec96 Mar97 Jun97
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Competitive Comparison of Invitro International's Degree of Financial Leverage

For the Diagnostics & Research subindustry, Invitro International'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.


Invitro International's Degree of Financial Leverage Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Invitro International's Degree of Financial Leverage distribution charts can be found below:

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



Invitro International Degree of Financial Leverage Calculation

Invitro International's Degree of Financial Leverage for the quarter that ended in Jun. 1997 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.12 (Jun. 1997) / -0.17 (Jun. 1996) - 1 )/( -0.919 (Jun. 1997) / -5.23 (Jun. 1996) - 1 )
=-0.2941/-0.8243
=0.36***

* 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.


Invitro International  (OTCPK:IVRO) 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.


Invitro International Degree of Financial Leverage Related Terms

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Invitro International (Invitro International) Business Description

Traded in Other Exchanges
N/A
Address
330 East Orangethorpe Avenue, Suite D, Placentia, CA, USA, 92870
Invitro International is a provider of non-animal testing methods. The company develops and commercializes test kits and laboratory services. Its testing technologies are designed to produce data regarding corrosivity, or ocular/dermal irritation, which correlate with animal and human test results. Its products and services include Irritection, Corrositex, and Lab Services. The company provides its products to various industries such as cosmetics, personal care, household products, textiles, pharmaceuticals, chemicals, and hazardous waste transportation. The majority of its revenue is generated from the United States and it also exports to other countries.