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NYSE Euronext, (LTS:0M8S) Degree of Financial Leverage : 0.00 (As of Sep. 2013)


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What is NYSE Euronext, 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). NYSE Euronext,'s Degree of Financial Leverage for the quarter that ended in Sep. 2013 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

LTS:0M8S's Degree of Financial Leverage is not ranked *
in the Capital Markets industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Financial Leverage only.

NYSE Euronext, Degree of Financial Leverage Historical Data

The historical data trend for NYSE Euronext,'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.

NYSE Euronext, Degree of Financial Leverage Chart

NYSE Euronext, Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Degree of Financial Leverage
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NYSE Euronext, Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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Competitive Comparison of NYSE Euronext,'s Degree of Financial Leverage

For the Financial Data & Stock Exchanges subindustry, NYSE Euronext,'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.


NYSE Euronext,'s Degree of Financial Leverage Distribution in the Capital Markets Industry

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

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



NYSE Euronext, Degree of Financial Leverage Calculation

NYSE Euronext,'s Degree of Financial Leverage for the quarter that ended in Sep. 2013 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.573 (Sep. 2013) / 1.31 (Sep. 2012) - 1 )/( 519.908 (Sep. 2013) / 493.251 (Sep. 2012) - 1 )
=0.2008/0.054
=3.71***

* 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.


NYSE Euronext,  (LTS:0M8S) 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.


NYSE Euronext, Degree of Financial Leverage Related Terms

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NYSE Euronext, (LTS:0M8S) Business Description

Traded in Other Exchanges
N/A
Address
NYSE Euronext, Inc., a Delaware corporation, was organized on May 22, 2006 in anticipation of the combination of the businesses of NYSE Group, Inc., a Delaware corporation, and Euronext N.V., a company organized under the laws of the Netherlands. The Company is a global operator of financial markets and provider of trading solutions. The Company offers an array of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, clearing operations, market data, commercial technology solutions and carbon trading, all designed to meet the evolving needs of investors, issuers, financial institutions and market participants. The Company consists of three business segments: Derivatives; Cash Trading and Listings; and Information Services and Technology Solutions. Derivatives segment is comprised of derivatives trading and clearing businesses and includes its subsidiaries NYSE Liffe, NYSE Liffe Clearing, NYSE Liffe US, NYSE Amex Options, NYSE Arca Options and joint venture NYPC as well as its related derivatives market data business. Cash Trading and Listings segment consists of cash trading and listings businesses and includes its subsidiaries the NYSE, Euronext, NYSE Amex, NYSE Arca, NYSE Alternext, NYSE Arca Europe and SmartPool, as well as NYSE Blue and Interbolsa, and its related cash trading market data business. Information Services and Technology Solutions segment refers to its commercial technology transactions, data and infrastructure businesses. The Company operates a commercial technology business, NYSE Technologies Inc., and also owns NYFIX, Inc., a provider of solutions that aims to optimize trading efficiency. NYSE Technologies provides comprehensive transaction, data and infrastructure services and managed solutions for buy-side, sell-side and exchange communities. NYSE Technologies' integrated solutions power the trading operations of global financial institutions and exchanges, including non-NYSE Euronext markets in addition to all the exchanges in the NYSE Euronext group. NYSE Technologies operates five businesses: Global Market Data, which offers an array of global market information products covering multiple asset classes; Trading Solutions, which creates and implements high performance, end-to-end messaging software and real-time market data distribution and integration products; Exchange Solutions, which provides multi-asset exchange platform services, managed services and expert consultancy; Global Connectivity, which offers a financial transaction network connecting firms and exchanges worldwide; and Transaction Services, which mainly comprises the former NYFIX FIX business, and which incorporates the NYFIX Marketplace and FIX Software businesses. NYSE Liffe US, NYSE Arca and NYSE Amex face considerable competition in derivatives trading. Their main U.S. competitors are the CME Group Inc., Chicago Board Options Exchange, Inc., the International Securities Exchange Holdings, Inc

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