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Cushman & Wakefield (Cushman & Wakefield) Degree of Financial Leverage : 3.38 (As of Mar. 2024)


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What is Cushman & Wakefield 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). Cushman & Wakefield's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 3.38. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CWK's Degree of Financial Leverage is ranked worse than
91.64% of 1758 companies
in the Real Estate industry
Industry Median: 1.02 vs CWK: 3.38

Cushman & Wakefield Degree of Financial Leverage Historical Data

The historical data trend for Cushman & Wakefield'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.

Cushman & Wakefield Degree of Financial Leverage Chart

Cushman & Wakefield Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only -0.08 -101.07 -0.02 -8.96 2.27

Cushman & Wakefield 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 2.01 1.87 2.15 2.27 3.38

Competitive Comparison of Cushman & Wakefield's Degree of Financial Leverage

For the Real Estate Services subindustry, Cushman & Wakefield'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.


Cushman & Wakefield's Degree of Financial Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Cushman & Wakefield's Degree of Financial Leverage distribution charts can be found below:

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



Cushman & Wakefield Degree of Financial Leverage Calculation

Cushman & Wakefield'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
=( 0.04 (Mar. 2024) / 0.33 (Mar. 2023) - 1 )/( 295.7 (Mar. 2024) / 399.4 (Mar. 2023) - 1 )
=-0.8788/-0.2596
=3.38***

* 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.


Cushman & Wakefield  (NYSE:CWK) 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.


Cushman & Wakefield Degree of Financial Leverage Related Terms

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Cushman & Wakefield (Cushman & Wakefield) Business Description

Traded in Other Exchanges
Address
125 Old Broad Street, London, GBR, EC2N 1AR
Cushman & Wakefield is one of the largest commercial real estate services firms in the world, with global headquarters in Chicago. The firm provides various real estate-related services to owners, occupiers, and investors. These include brokerage services for leasing and capital markets sales as well as advisory services such valuation, project management, and facilities management.
Executives
Nathaniel Robinson officer: EVP, Strategic Planning, CIO 225 WEST WACKER DRIVE, CHICAGO IL 60606
Tpg Gp A, Llc 10 percent owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michelle Felman director
Noelle J Perkins officer: See Remarks 3075 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE TX 60515
Pagac Drone Holding Gp I Ltd 10 percent owner 32/F, AIA CENTRAL, 1 CONNAUGHT ROAD CENTRAL, HONG KONG K3 NA
Michelle Mackay director C/O WCI COMMUNITIES, INC., 24301 WALDEN CENTER DRIVE, BONITA SPRINGS FL 34134
W Brett White director, officer: Executive Chairman and CEO 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Andrew R. Mcdonald officer: President C/O CUSHMAN & WAKEFIELD PLC, 225 W WACKER DR SUITE 3000, CHICAGO IL 60606
Jon Winkelried 10 percent owner C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
John Forrester officer: President 225 WEST WACKER DRIVE, CHICAGO IL 60606
Angela Sun director 7001 EAST BELLEVIEW AVENUE, DENVER CO 80236
Tpg Asia Advisors Vi, Inc. 10 percent owner C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, FORT WORTH TX 76102
Anthony Murray Miller director 225 WEST WACKER DRIVE, CHICAGO IL 60606
Neil O Johnston officer: Global Chief Financial Officer
Angelique G. Brunner director C/O CHESAPEAKE LODGING TRUST, 4300 WILSON BOULEVARD, SUITE 625, ARLINGTON VA 22203