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Shaw Communications (Shaw Communications) Degree of Financial Leverage : 0.00 (As of Nov. 2022)


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What is Shaw Communications 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). Shaw Communications's Degree of Financial Leverage for the quarter that ended in Nov. 2022 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

SJR's Degree of Financial Leverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.025
* Ranked among companies with meaningful Degree of Financial Leverage only.

Shaw Communications Degree of Financial Leverage Historical Data

The historical data trend for Shaw Communications'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.

Shaw Communications Degree of Financial Leverage Chart

Shaw Communications Annual Data
Trend Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22
Degree of Financial Leverage
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Shaw Communications Quarterly Data
Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22
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Competitive Comparison of Shaw Communications's Degree of Financial Leverage

For the Telecom Services subindustry, Shaw Communications'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.


Shaw Communications's Degree of Financial Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Shaw Communications's Degree of Financial Leverage distribution charts can be found below:

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



Shaw Communications Degree of Financial Leverage Calculation

Shaw Communications's Degree of Financial Leverage for the quarter that ended in Nov. 2022 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.134 (Nov. 2022) / 1.623 (Nov. 2021) - 1 )/( 963.836 (Nov. 2022) / 1074.667 (Nov. 2021) - 1 )
=-0.3013/-0.1031
=2.92***

* 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.


Shaw Communications  (NYSE:SJR) 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.


Shaw Communications Degree of Financial Leverage Related Terms

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Shaw Communications (Shaw Communications) Business Description

Traded in Other Exchanges
N/A
Address
630 - 3rd Avenue S.W., Suite 900, Finance Department, Calgary, AB, CAN, T2P 4L4
Shaw Communications is a Canadian cable company that is one of the biggest providers of internet, television, and landline telephone services in British Columbia, Alberta, Saskatchewan, Manitoba, and northern Ontario. In fiscal 2021, more than 75% of Shaw's total revenue resulted from this wireline business. Shaw now also offers wireless service over most of Canada's population footprint after acquiring Wind Mobile in 2016. As a smaller carrier, Shaw has favored bidding status in spectrum auctions, giving it a further boost in enhancing its wireless network. At the 2019 auction, Shaw added significant amounts of 600 MHz spectrum to the 700 MHz spectrum it is currently deploying.

Shaw Communications (Shaw Communications) Headlines

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