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Staffing 360 Solutions (Staffing 360 Solutions) Degree of Financial Leverage : 0.24 (As of Sep. 2023)


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What is Staffing 360 Solutions 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). Staffing 360 Solutions's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 0.24. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Staffing 360 Solutions's Degree of Financial Leverage or its related term are showing as below:

STAF's Degree of Financial Leverage is ranked better than
80.43% of 1022 companies
in the Business Services industry
Industry Median: 1.01 vs STAF: 0.24

Staffing 360 Solutions Degree of Financial Leverage Historical Data

The historical data trend for Staffing 360 Solutions'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.

Staffing 360 Solutions Degree of Financial Leverage Chart

Staffing 360 Solutions Annual Data
Trend May13 May14 May15 May16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.64 -1.41 -1.57 0.40 1.46

Staffing 360 Solutions Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.60 1.46 0.93 38.87 0.24

Competitive Comparison of Staffing 360 Solutions's Degree of Financial Leverage

For the Staffing & Employment Services subindustry, Staffing 360 Solutions'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.


Staffing 360 Solutions's Degree of Financial Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Staffing 360 Solutions's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Staffing 360 Solutions's Degree of Financial Leverage falls into.



Staffing 360 Solutions Degree of Financial Leverage Calculation

Staffing 360 Solutions's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -8.89 (Sep. 2023) / -6.449 (Sep. 2022) - 1 )/( -17.64 (Sep. 2023) / -6.852 (Sep. 2022) - 1 )
=0.3785/1.5744
=0.24***

* 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.


Staffing 360 Solutions  (NAS:STAF) 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.


Staffing 360 Solutions Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Staffing 360 Solutions's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Staffing 360 Solutions (Staffing 360 Solutions) Business Description

Traded in Other Exchanges
Address
757 3rd Avenue, 27th Floor, New York, NY, USA, 10017
Staffing 360 Solutions, Inc. is a public company in the staffing sector engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the US and the UK. The Company believes the staffing industry offers opportunities for accretive acquisitions that will drive its annual revenues to $300 million. As part of its targeted consolidation model, the Company is pursuing acquisition targets in the finance and accounting, administrative, engineering and IT staffing space.
Executives
Anil Kumar Sharma 10 percent owner 24 HAYHURST DRIVE, NEWTOWN PA 18940
Satvinder Singh 10 percent owner 24 HAYHURST DRIVE, NEWTOWN PA 18940
Rscube Investment, Llc 10 percent owner 24 HAYHURST DRIVE, NEWTOWN PA 18940
Vincent J Cebula director 1301 AVENUE OF THE AMERICAS, 34 TH FLOOR, NEW YORK NY 10019
Brendan Flood director
M Khalid Anwar officer: SVP, Corporate Finance 641 LEXINGTON AVE, NEW YORK NY 10022
Mark Gibbens officer: CFO 245 FREIGHT STREET, WATERBURY CT 06702
Chris Powers officer: Interim CFO 641 LEXINGTON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Sharnika Viswakula officer: Corporate Controller 641 LEXINGTON AVENUE, 27TH FLOOR, C/O STAFFING 360 SOLUTIONS, INC., NEW YORK NY 10022
Jackson Investment Group, Llc 10 percent owner 2655 NORTHWINDS PARKWAY, ALPHARETTA GA 30009
Richard Lee Jackson 10 percent owner 2655 NORTHWINDS PARKWAY, ALPHARETTA GA 30009
Alicia Barker director C/O STAFFING 360 SOLUTIONS, INC., 641 LEXINGTON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Christopher John Lutzo officer: General Counsel and Secretary 355 SUBURBAN AVENUE, FAIRFIELD CT 06825
David Faiman officer: Chief Financial Officer 93 GEORGETOWN ROAD, WESTON CT 06883
Nicholas Florio director C/O STAFFING 360, 641 LEXINGTON AVENUE, SUITE 1526, NEW YORK NY 10022