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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Retractable Technologies's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 10.92. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Retractable Technologies's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Retractable Technologies'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.
Retractable Technologies Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 0.61 | 1.28 | 0.57 | 0.98 | 0.98 |
Retractable Technologies 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 | 0.94 | 0.94 | 1.08 | 0.98 | 10.92 |
For the Medical Instruments & Supplies subindustry, Retractable Technologies'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.
For the Medical Devices & Instruments industry and Healthcare sector, Retractable Technologies's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Retractable Technologies's Degree of Financial Leverage falls into.
Retractable Technologies'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 |
= | ( -0.26 (Mar. 2024) / -0.05 (Mar. 2023) - 1 ) | / | ( -9.482 (Mar. 2024) / -6.848 (Mar. 2023) - 1 ) | |
= | 4.2 | / | 0.3846 | |
= | 10.92*** |
* 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.
Retractable Technologies (AMEX:RVP) 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.
Thank you for viewing the detailed overview of Retractable Technologies's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Thomas J Shaw | director, 10 percent owner, officer: President and CEO | 511 LOBO LANE, LITTLE ELM TX 75068 |
Braden Michael Leonard | 10 percent owner | 156 S. FIRST STREET, ZIONSVILLE IN 46077 |
Bigby Walter O Jr | director | 816 BENTON RD, BOSSIER CITY LA 71111 |
Darren E Findley | director | 1618 GRASSMERE RD, FRANKLIN TN 37064 |
Russell B Kuhlman | director, officer: Vice President of Sales | 511 LOBO LANE, PO BOX 9, LITTLE ELM TX 75068 |
Fort John W Iii | director, officer: Chief Financial Officer | 511 LOBO LANE, LITTLE ELM TX 75068 |
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Clarence D Zierhut | director | 1217 BLUEBIRD LANE, GARLAND TX 75042 |
Lillian E Salerno | 10 percent owner | 777 7TH AVENUE, UNIT 308, WASHINGTON DC 20001 |
Suzanne M August | 10 percent owner | 340 NORTH JULIA CIRCLE, ST. PETERSBURG FL 33706 |
Steven R Wisner | director, officer: Exec. VP, Eng & Prod. | 511 LOBO LANE, PO BOX 9, LITTLE ELM TX 75068 |
Marco Laterza | director | P.O. BOX 64104, EL PASO TX 79904 |
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Michele Larios | officer: Vice President/General Counsel | 511 LOBO LANE, LITTLE ELM TX 75068 |
From GuruFocus
By gurufocus • 03-16-2009
By GuruFocus Research • 08-22-2023
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