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Startengine Crowdfunding (Startengine Crowdfunding) Degree of Financial Leverage : 1.43 (As of Mar. 2024)


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What is Startengine Crowdfunding 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). Startengine Crowdfunding's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.43. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

STGC's Degree of Financial Leverage is ranked worse than
80.88% of 659 companies
in the Capital Markets industry
Industry Median: 0.97 vs STGC: 1.43

Startengine Crowdfunding Degree of Financial Leverage Historical Data

The historical data trend for Startengine Crowdfunding'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.

Startengine Crowdfunding Degree of Financial Leverage Chart

Startengine Crowdfunding Annual Data
Trend Dec21 Dec22 Dec23
Degree of Financial Leverage
- 0.48 1.14

Startengine Crowdfunding Quarterly Data
Jun21 Sep21 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 Premium Member Only 0.75 2.20 1.31 1.14 1.43

Competitive Comparison of Startengine Crowdfunding's Degree of Financial Leverage

For the Capital Markets subindustry, Startengine Crowdfunding'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.


Startengine Crowdfunding's Degree of Financial Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Startengine Crowdfunding's Degree of Financial Leverage distribution charts can be found below:

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



Startengine Crowdfunding Degree of Financial Leverage Calculation

Startengine Crowdfunding'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
=( -0.03 (Mar. 2024) / -0.015 (Mar. 2023) - 1 )/( -15.849 (Mar. 2024) / -9.317 (Mar. 2023) - 1 )
=1/0.7011
=1.43***

* 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.


Startengine Crowdfunding  (OTCPK:STGC) 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.


Startengine Crowdfunding Degree of Financial Leverage Related Terms

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


Startengine Crowdfunding (Startengine Crowdfunding) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
4100 West Alameda Avenue, 3rd Floor, Burbank, CA, USA, 91505
Startengine Crowdfunding Inc is an equity crowdfunding platform. The company allows investors and common people to invest in start-up projects and early-stage companies. Also, it facilitates small and medium-sized businesses in raising capital at every stage and provides related services.
Executives
Joshua Daniel Amster officer: VP, Fundraising 16029 SKYTOP RD ENCINO CA 91436
Jonathan Reyes officer: Chief Compliance Officer 3900 W ALAMEDA AVE STE 1200 BURBANK CA 91505
Aubrey Chernick 10 percent owner C/O STARTENGINE CROWDFUNDING INC. 3900 W ALAMEDA AVE STE 1200 BURBANK CA 91505
Lee Miller 10 percent owner 1014 23RD ST. SANTA MONICA CA 90403
Johanna Cronin officer: Chief Marketing Officer 3900 W ALAMEDA AVE STE 1200 BURBANK CA 91505
Howard Edward Marks director, 10 percent owner, officer: Chief Executive Officer 2900 W ALAMEDA AVE SUITE 1200 BURBANK CA 91505
Ronald David Miller director, 10 percent owner 3900 W ALAMEDA AVE STE 1200 BURBANK CA 91505
Jebsen Allen C D officer: SVP, Fundraising 3900 W ALAMEDA AVE SUITE 1200 BURBANK CA 91505
Hunter Strassman officer: VP, Finance C/O STARTENGINE CROWDFUNDING INC. 3900 W ALAMEDA AVE STRE 1200 BURBANK CA 91515
Joeseph Mathews officer: Chief Technology Officer C/O STARTENGINE CROWDFUNDING INC. 3900 W ALAMEDA AVE. SUITE 1200 BURBANK CA 91505

Startengine Crowdfunding (Startengine Crowdfunding) Headlines

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