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BlackRock (BlackRock) Degree of Financial Leverage : 0.51 (As of Dec. 2023)


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What is BlackRock 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). BlackRock's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.51. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BLK's Degree of Financial Leverage is ranked better than
72.33% of 636 companies
in the Asset Management industry
Industry Median: 0.98 vs BLK: 0.51

BlackRock Degree of Financial Leverage Historical Data

The historical data trend for BlackRock'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.

BlackRock Degree of Financial Leverage Chart

BlackRock Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.90 1.01 0.82 0.50 0.51

BlackRock Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.80 1.33 -0.61 0.51 -

Competitive Comparison of BlackRock's Degree of Financial Leverage

For the Asset Management subindustry, BlackRock'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.


BlackRock's Degree of Financial Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, BlackRock's Degree of Financial Leverage distribution charts can be found below:

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



BlackRock Degree of Financial Leverage Calculation

BlackRock's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 36.51 (Dec. 2023) / 33.97 (Dec. 2022) - 1 )/( 7447 (Dec. 2023) / 6502 (Dec. 2022) - 1 )
=0.0748/0.1453
=0.51***

* 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.


BlackRock  (NYSE:BLK) 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.


BlackRock Degree of Financial Leverage Related Terms

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


BlackRock (BlackRock) Business Description

Address
50 Hudson Yards, New York, NY, USA, 10001
BlackRock is the largest asset manager in the world, with $9.101 trillion in AUM at the end of September 2023. Product mix is fairly diverse, with 52% of the firm's managed assets in equity strategies, 28% in fixed income, 9% in multi-asset class, 8% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is also geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the U.S. and Canada.
Executives
Laurence Fink director, officer: Chairman and CEO BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Mark Wiedman officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Amin H. Nasser director 50 HUDSON YARDS, NEW YORK NY 10001
J. Richard Kushel officer: Senior Managing Director BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Martin Small officer: CFO & Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Marc D. Comerchero officer: Principal Accounting Officer BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Stephen Cohen officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Caroline Heller officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Manish Mehta officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Rachel Lord officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Mark Mccombe officer: Senior Managing Director BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055
Robert Kapito director, officer: President 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
William E Ford director 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Kristin C Peck director C/O ZOETIS INC., 10 SYLVAN WAY, PARSIPPANY NJ 07054
Beth Ford director C/O CORPORATE SECRETARY SCHOLASTIC CORP, 557 BROADWAY, NEW YORK NY 10012