GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Post Holdings Inc (NYSE:POST) » Definitions » Degree of Financial Leverage

Post Holdings (Post Holdings) Degree of Financial Leverage : 1.39 (As of Dec. 2023)


View and export this data going back to 2012. Start your Free Trial

What is Post 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). Post Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.39. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

POST's Degree of Financial Leverage is ranked worse than
74.02% of 1840 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs POST: 1.39

Post Holdings Degree of Financial Leverage Historical Data

The historical data trend for Post 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.

Post Holdings Degree of Financial Leverage Chart

Post Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.80 2.53 -73.63 4.09 1.41

Post 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 6.85 12.14 1.64 1.41 1.39

Competitive Comparison of Post Holdings's Degree of Financial Leverage

For the Packaged Foods subindustry, Post 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.


Post Holdings's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Post Holdings's Degree of Financial Leverage distribution charts can be found below:

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



Post Holdings Degree of Financial Leverage Calculation

Post 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
=( 4.66 (Dec. 2023) / 13.96 (Dec. 2022) - 1 )/( 702.5 (Dec. 2023) / 1353.2 (Dec. 2022) - 1 )
=-0.6662/-0.4809
=1.39***

* 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.


Post Holdings  (NYSE:POST) 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.


Post Holdings Degree of Financial Leverage Related Terms

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


Post Holdings (Post Holdings) Business Description

Traded in Other Exchanges
Address
2503 South Hanley Road, St. Louis, MO, USA, 63144
Post Holdings Inc is an consumer packaged goods holding company. It operates in Post Consumer Brands which Includes branded and private label ready-to-eat cereals, Weetabix it Includes the businesses of Weetabix Limited, which Post acquired in July 2017 and which produces and distributes branded and private label RTE cereal, hot cereals and other cereal-based food products, Foodservice which Includes primarily egg and potato products in the foodservice and food ingredient channels from the businesses of MFI Holding Corporation, lastly Refrigerated Retail segment Provides refrigerated retail products, inclusive of side dishes, eggs and egg products, sausage, cheese and other dairy and refrigerated products.
Executives
Ellen F Harshman director C/O POST HOLDINGS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63144
Dorothy M Burwell director C/O POST HOLDINGS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63021
Bradly A Harper officer: SVP, CHIEF ACCTING OFFICER C/O POST HOLDINGS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63144
Thomas C Erb director C/O POST HOLDINGS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63144
Nicolas Catoggio officer: PRES & CEO, PCB C/O POST HOLDINGS, INC., 2, ST. LOUIS MO 63144
David P Skarie director RALCORP HOLDINGS INC, 800 MARKET STREET STE 2900, ST LOUIS MO 63101
Diedre J Gray officer: SVP, GEN. COUNSEL & SEC'Y C/O POST HOLDINGS, INC., 2503 SOUTH HANLEY ROAD, ST. LOUIS MO 63144
Matthew J Mainer officer: SVP, CFO & TREASURER C/O POST HOLDINGS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63144
Robert E Grote director C/O POST HOLDINGS, INC., 2503 SOUTH HANLEY ROAD, ST. LOUIS MO 63144
Gregory L Curl director
Jennifer Kuperman Johnson director C/O BELLRING BRANDS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63144
Mark W Westphal officer: PRES., MICHAEL FOODS C/O POST HOLDINGS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63144
David W Kemper director PO BOX 419248, KANSAS CITY MO 64141-6248
Jay W Brown director C/O POST HOLDINGS, INC., 2503 S. HANLEY ROAD, ST. LOUIS MO 63144
Robert V Vitale officer: Chief Financial Officer C/O POST HOLDINGS, INC., 2503 SOUTH HANLEY ROAD, ST. LOUIS MO 63144