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NCR Atleos (NCR Atleos) Degree of Financial Leverage : 43.04 (As of Mar. 2024)


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What is NCR Atleos 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). NCR Atleos's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 43.04. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

NATL's Degree of Financial Leverage is ranked worse than
99.21% of 2672 companies
in the Software industry
Industry Median: 0.98 vs NATL: 43.04

NCR Atleos Degree of Financial Leverage Historical Data

The historical data trend for NCR Atleos'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.

NCR Atleos Degree of Financial Leverage Chart

NCR Atleos Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- -0.12 1.12 -46.05

NCR Atleos Quarterly Data
Dec20 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 - 1.29 -1.55 -46.05 43.04

Competitive Comparison of NCR Atleos's Degree of Financial Leverage

For the Software - Application subindustry, NCR Atleos'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.


NCR Atleos's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, NCR Atleos's Degree of Financial Leverage distribution charts can be found below:

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



NCR Atleos Degree of Financial Leverage Calculation

NCR Atleos'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
=( -2.463 (Mar. 2024) / 1.799 (Mar. 2023) - 1 )/( 206 (Mar. 2024) / 218 (Mar. 2023) - 1 )
=-2.3691/-0.055
=43.04***

* 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.


NCR Atleos  (NYSE:NATL) 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.


NCR Atleos Degree of Financial Leverage Related Terms

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


NCR Atleos (NCR Atleos) Business Description

Industry
Traded in Other Exchanges
N/A
Address
864 Spring Street NW, Atlanta, GA, USA, 30308
Website
NCR Atleos Corp is financial technology company providing self-directed banking solutions to a global customer base including financial institutions, merchants, manufacturers, retailers and consumers. Self-directed banking is a rapidly growing, secular trend that allows banking customers to transact seamlessly between various channels all for the same transaction. Their comprehensive solutions enable the acceleration of self-directed banking through ATM and interactive teller machine (ITM) technology, including software, services, hardware and our proprietary Allpoint network.
Executives
Andrew R Duvall officer: Vice President, other: Manager 322 S MAIN STREET, GREENVILLE SC 29601
Mary Ellen Baker director CITIZENS FINANCIAL GROUP, INC., 600 WASHINGTON BLVD., STAMFORD CT 06901
Mark W Begor director 181 METRO DRIVE, SAN JOSE CA 95110
Odilon Almeida director 7001 EAST BELLEVIEW AVENUE, DENVER CO 80237
Von Gillern Jeffry H. director U.S. BANCORP, 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Stuart Mackinnon officer: Chief Operating Officer 3250 BRIARPARK, SUITE 400, HOUSTON TX 77042
Frank A Natoli director 5995 MAYFAIR ROAD, NORTH CANTON OH 44720
Michelle M Frymire director C/O SPIRIT REALTY CAPITAL, INC., 2727 N. HARWOOD STREET, SUITE 300, DALLAS TX 75201
Lashawne Meriwether officer: Chief Human Resources Officer 10800 ROOSEVELT BLVD. N., ST. PETERSBURG FL 33716
Paul J. Campbell officer: Chief Financial Officer 864 SPRING STREET, ATLANTA GA 30308
Ricardo J Nunez officer: EVP, General Counsel & Secrtry 3100 CUMBERLAND BLVD, STE 1700, ATLANTA GA 30339
Joseph E Reece director ONE VALERO WAY, BUILDING D, SUITE 200, SAN ANTONIO TX 78249
Timothy Charles Oliver officer: See Remarks C/O NCR CORPORATION, 864 SPRING STREET NW, ATLANTA GA 30308
Ncr Corp 10 percent owner 864 SPRING STREET NW, ATLANTA GA 30309
Yi Song officer: Vice President, other: Manager 864 SPRING STREET, ATLANTA GA 30308