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Education Realty Trust (Education Realty Trust) Degree of Financial Leverage : 0.00 (As of Jun. 2018)


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What is Education Realty Trust 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). Education Realty Trust's Degree of Financial Leverage for the quarter that ended in Jun. 2018 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

EDR's Degree of Financial Leverage is not ranked *
in the REITs industry.
Industry Median: 1.065
* Ranked among companies with meaningful Degree of Financial Leverage only.

Education Realty Trust Degree of Financial Leverage Historical Data

The historical data trend for Education Realty Trust'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.

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Education Realty Trust Degree of Financial Leverage Chart

Education Realty Trust Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Degree of Financial Leverage
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Education Realty Trust Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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Competitive Comparison of Education Realty Trust's Degree of Financial Leverage

For the REIT - Residential subindustry, Education Realty Trust'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.


Education Realty Trust's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Education Realty Trust's Degree of Financial Leverage distribution charts can be found below:

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



Education Realty Trust Degree of Financial Leverage Calculation

Education Realty Trust's Degree of Financial Leverage for the quarter that ended in Jun. 2018 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.66 (Jun. 2018) / 0.43 (Jun. 2017) - 1 )/( 104.065 (Jun. 2018) / 44.818 (Jun. 2017) - 1 )
=2.8605/1.3219
=2.16***

* 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.


Education Realty Trust  (NYSE:EDR) 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.


Education Realty Trust Degree of Financial Leverage Related Terms

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Education Realty Trust (Education Realty Trust) Business Description

Traded in Other Exchanges
N/A
Address
Education Realty Trust Inc is a real estate investment trust engaged in the acquisition, development, and management of collegiate housing communities located near university campuses throughout the United States. In terms of the total number of residential communities and the total number of beds, the majority of the company's real estate portfolio is located in the Mid-Atlantic and South Central regions of the United States. Nearly all of Education Realty's revenue is derived from short-term collegiate housing leases. Most of this revenue is generated by the company's holdings in the Mid-Atlantic and South Central regions. Real estate markets surrounding universities in Kentucky and Texas represent some of Education Realty's largest individual markets.
Executives
John T Thomas director 309 N. WATER STREET, SUITE 500, MILWAUKEE WI 53202
Brewer Edwin B Jr officer: Executive VP and CFO C/O EDUCATION REALTY TRUST, INC., 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
Howard A Silver director 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
Randy L Churchey director, officer: Chairman and CEO 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
John V Arabia director 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
Kimberly Schaefer director C/O SEAWORLD ENTERTAINMENT, INC., 6240 SEA HARBOR DR, ORLANDO FL 32821
Randall H Brown officer: Exec. VP, CFO and Treasurer 2100 REXFORD ROAD, SUITE 414, CHARLOTTE NC 28211

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