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TeraWulf (TeraWulf) Degree of Financial Leverage : 1.49 (As of Mar. 2024)


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What is TeraWulf 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). TeraWulf's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.49. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

WULF's Degree of Financial Leverage is ranked worse than
81.82% of 660 companies
in the Capital Markets industry
Industry Median: 0.97 vs WULF: 1.49

TeraWulf Degree of Financial Leverage Historical Data

The historical data trend for TeraWulf'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.

TeraWulf Degree of Financial Leverage Chart

TeraWulf Annual Data
Trend Mar21 Dec22 Dec23
Degree of Financial Leverage
- - 1.56

TeraWulf Quarterly Data
Jun21 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 - 0.85 -0.59 1.56 1.49

Competitive Comparison of TeraWulf's Degree of Financial Leverage

For the Capital Markets subindustry, TeraWulf'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.


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

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

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



TeraWulf Degree of Financial Leverage Calculation

TeraWulf'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
=( -0.23 (Mar. 2024) / -0.81 (Mar. 2023) - 1 )/( -23.812 (Mar. 2024) / -45.853 (Mar. 2023) - 1 )
=-0.716/-0.4807
=1.49***

* 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.


TeraWulf  (NAS:WULF) 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.


TeraWulf Degree of Financial Leverage Related Terms

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


TeraWulf (TeraWulf) Business Description

Traded in Other Exchanges
N/A
Address
9 Federal Street, Easton, MD, USA, 21601
TeraWulf Inc is a digital asset technology company with a core business of sustainable bitcoin mining. The company develops, owns and operates its bitcoin mining facility sites in the United States powered by hydro, nuclear, and solar energy.
Executives
Paul B. Prager director, 10 percent owner, officer: Chief Executive Officer 9 FEDERAL STREET, EASTON MD 21601
Michael C. Bucella director C/O TERAWULF INC., 9 FEDERAL STREET, EASTON MD 21601
Patrick Fleury officer: Chief Financial Officer C/O GSO CAPTTAL PARTNERS LP, 345 PARK AVENUE, NEW YORK NY 10154
Bryan J. Pascual 10 percent owner 53 PALMERAS STREET, SUITE 601, SAN JUAN PR 00901
Revolve Capital Llc 10 percent owner 339 DORADO BEACH EAST, DORADO PR 00646
Walter E. Carter director 9 FEDERAL STREET, EASTON MD 21601
Jason Griffin New director 280 PARK AVENUE, NEW YORK NY 10017
Kenneth J Deane officer: CFO & Treasurer 9 FEDERAL STREET, EASTON MD 21601
Stammtisch Investments Llc 10 percent owner 9 FEDERAL STREET, EASTON MD 21601
Lisa A. Prager director 9 FEDERAL STREET, EASTON MD 21601
Kerri M. Langlais officer: Chief Strategy Officer 9 FEDERAL STREET, EASTON MD 21601
Nazar M. Khan director, officer: COO & Chief Technology Officer 9 FEDERAL STREET, EASTON MD 21601
Catherine J. Motz director 9 FEDERAL STREET, EASTON MD 21601
Steven T. Pincus director 9 FEDERAL STREET, EASTON MD 21601
Bayshore Capital Llc 10 percent owner 53 PALMERAS STREET, SUITE 601, SAN JUAN PR 00901