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Pacific Coast Oil Trust (Pacific Coast Oil Trust) Degree of Financial Leverage : 0.00 (As of Jun. 2019)


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What is Pacific Coast Oil Trust 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). Pacific Coast Oil Trust's Degree of Financial Leverage for the quarter that ended in Jun. 2019 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Pacific Coast Oil Trust's Degree of Financial Leverage or its related term are showing as below:

ROYTL's Degree of Financial Leverage is not ranked *
in the Oil & Gas industry.
Industry Median: 1.01
* Ranked among companies with meaningful Degree of Financial Leverage only.

Pacific Coast Oil Trust Degree of Financial Leverage Historical Data

The historical data trend for Pacific Coast Oil Trust'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.

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Pacific Coast Oil Trust Degree of Financial Leverage Chart

Pacific Coast Oil Trust Annual Data
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Degree of Financial Leverage
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Pacific Coast Oil Trust Quarterly Data
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Competitive Comparison of Pacific Coast Oil Trust's Degree of Financial Leverage

For the Oil & Gas E&P subindustry, Pacific Coast Oil Trust'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.


Pacific Coast Oil Trust's Degree of Financial Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Pacific Coast Oil Trust's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Pacific Coast Oil Trust's Degree of Financial Leverage falls into.



Pacific Coast Oil Trust Degree of Financial Leverage Calculation

Pacific Coast Oil Trust's Degree of Financial Leverage for the quarter that ended in Jun. 2019 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.327 (Jun. 2019) / 0.195 (Jun. 2018) - 1 )/( 12.801 (Jun. 2019) / 7.471 (Jun. 2018) - 1 )
=0.6769/0.7134
=0.95***

* 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.


Pacific Coast Oil Trust  (OTCPK:ROYTL) 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.


Pacific Coast Oil Trust Degree of Financial Leverage Related Terms

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Pacific Coast Oil Trust (Pacific Coast Oil Trust) Business Description

Traded in Other Exchanges
N/A
Address
601 Travis Street, 16th Floor, Houston, TX, USA, 77002
Pacific Coast Oil Trust is a statutory trust which is formed to acquire and hold net profits and royalty interests in certain oil and natural gas properties located in California for the benefit of the Trust unitholders. The underlying properties consist of producing and non-producing interests in oil units, wells, and lands located onshore in California in the Santa Maria Basin, and the Los Angeles Basin.
Executives
Greenhill & Co Inc 10 percent owner 1271 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Greenhill Capital Partners, Llc 10 percent owner 300 PARK AVENUE, 23RD FLOOR, NEW YORK NY 10022
Gcp Managing Partner Ii, L.p. 10 percent owner 300 PARK AVENUE, NEW YORK NY 10022
Metalmark Capital Partners Ii Gp, L.p. 10 percent owner 1177 AVENUE OF THE AMERICAS, 40TH FLOOR, NEW YORK NY 10036