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Maiden Holdings (Maiden Holdings) Degree of Financial Leverage : 5.04 (As of Dec. 2023)


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What is Maiden Holdings 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). Maiden Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 5.04. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

MHLD's Degree of Financial Leverage is ranked worse than
96.26% of 348 companies
in the Insurance industry
Industry Median: 0.96 vs MHLD: 5.04

Maiden Holdings Degree of Financial Leverage Historical Data

The historical data trend for Maiden Holdings'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.

Maiden Holdings Degree of Financial Leverage Chart

Maiden Holdings 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 0.97 0.98 -1.43 0.26 5.04

Maiden Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.26 0.03 0.20 0.11 5.04

Competitive Comparison of Maiden Holdings's Degree of Financial Leverage

For the Insurance - Reinsurance subindustry, Maiden Holdings'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.


Maiden Holdings's Degree of Financial Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Maiden Holdings's Degree of Financial Leverage distribution charts can be found below:

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



Maiden Holdings Degree of Financial Leverage Calculation

Maiden Holdings'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
=( -0.38 (Dec. 2023) / 0.63 (Dec. 2022) - 1 )/( -27.993 (Dec. 2023) / -41.062 (Dec. 2022) - 1 )
=-1.6032/-0.3183
=5.04***

* 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.


Maiden Holdings  (NAS:MHLD) 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.


Maiden Holdings Degree of Financial Leverage Related Terms

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


Maiden Holdings (Maiden Holdings) Business Description

Traded in Other Exchanges
N/A
Address
94 Pitts Bay Road, Ideation House, 1st Floor, Pembroke, BMU, HM 08
Maiden Holdings Ltd provides reinsurance products and services to regional and specialty property and casualty insurers. The company operates in two segments: AmTrust Reinsurance and Diversified Reinsurance. The AmTrust Reinsurance segment provides products that cover workers' compensation, commercial package, commercial auto, and extended warranty. The Diversified Reinsurance segment provides small and midsize regional and specialty insurers with reinsurance capital products. The company has underwriting operations in Bermuda and the United States, along with business development teams in the United Kingdom, Germany, and other markets.
Executives
Yehuda Neuberger director 6201 15TH AVENUE, BROOKLYN NY 11219
Keith A Thomas director 605 WEST 137TH STREET, APT. 35, NEW YORK NY 10031
Maiden Reinsurance Ltd 10 percent owner 159 BANK STREET, 4TH FLOOR, BURLINGTON VT 05401
Maiden Holdings North America, Ltd. 10 percent owner 6000 MIDLANTIC DRIVE, SUITE 200S, MOUNT LAUREL NJ 08054
Maiden Holdings, Ltd. 10 percent owner 48 PAR-LA-VILLE ROAD, SUITE 1141, HAMILTON D0 -HM 11
Steven Harold Nigro director 445 FIFTH AVENUE, NEW YORK NY 10016
Simcha G Lyons director 225 WEST 83RD STREET, APT 3Q, NEW YORK NY 10024
Claude Leblanc director ONE BERMUDIANA ROAD, HAMILTON D0 HM 11
Paul S Giordano director C/O XL CAPITAL LTD, XL HOUSE, ONE BERMUDIANA RD, HAMILTON BERMUDA D0 HMII
Denis M Butkovic officer: SVP, General Counsel & Secty 13 ELLIS COURT, MORGANVILLE X1 07751
Raymond Michael Neff director PO BOX 460, SARASOTA FL 34230
Holly Lynn Blanchard director 1952 COUNTY ROAD C, CERESCO NE 68017
William Jarman officer: SVP & Chief Actuary 224 COUNTRY CLUB DRIVE, MOORESTOWN X1 08057
Michael C Haines officer: SVP - Finance 701 ROUTE 301, P.O. BOX 320, COLD SPRING X1 10516
Karen Schmitt officer: PRESIDENT, MAIDEN RE 6000 MIDLANTIC DRIVE, MT LAUREL NJ 08054