What is US Stem Cell 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).
US Stem Cell's Degree of Financial Leverage for the quarter that ended in Dec. 2022 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for US Stem Cell's Degree of Financial Leverage or its related term are showing as below:
USRM's Degree of Financial Leverage is not ranked *
in the Biotechnology industry.
Industry Median: 0.96 * Ranked among companies with meaningful Degree of Financial Leverage only.
US Stem Cell Degree of Financial Leverage Historical Data
The historical data trend for US Stem Cell'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.
Competitive Comparison of US Stem Cell's Degree of Financial Leverage
For the Biotechnology subindustry, US Stem Cell'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.
US Stem Cell's Degree of Financial Leverage Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, US Stem Cell's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where US Stem Cell's Degree of Financial Leverage falls into.
US Stem Cell Degree of Financial Leverage Calculation
US Stem Cell's Degree of Financial Leverage for the quarter that ended in Dec. 2022 is calculated as:
* 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.
US Stem Cell (OTCPK:USRM) 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.
US Stem Cell Degree of Financial Leverage Related Terms
Thank you for viewing the detailed overview of US Stem Cell's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
US Stem Cell Inc is a biotechnology company engaged in the discovery and development of autologous cell therapies for the treatment of chronic and acute heart damage. Its product includes MyoCell, a clinical therapy designed to populate regions of scar tissue within a patient's heart with autologous muscle cells, or cells from a patient's body, for the purpose of improving cardiac function in chronic heart failure patients. The company's discoveries include multiple cell therapies in various stages of development that repair damaged tissues throughout the body due to injury or disease so that patients may return to a normal lifestyle.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
USRM has been successfully added to your 