GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » FRX Innovations Inc (STU:W2A) » Definitions » Degree of Financial Leverage

FRX Innovations (STU:W2A) Degree of Financial Leverage : 0.00 (As of Sep. 2023)


View and export this data going back to 2023. Start your Free Trial

What is FRX Innovations 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). FRX Innovations's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

STU:W2A's Degree of Financial Leverage is not ranked *
in the Chemicals industry.
Industry Median: 1.02
* Ranked among companies with meaningful Degree of Financial Leverage only.

FRX Innovations Degree of Financial Leverage Historical Data

The historical data trend for FRX Innovations'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.

FRX Innovations Degree of Financial Leverage Chart

FRX Innovations Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
- - 24.92 0.87 -0.38

FRX Innovations Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 -0.24 -0.38 2.74 1.44 1.69

Competitive Comparison of FRX Innovations's Degree of Financial Leverage

For the Specialty Chemicals subindustry, FRX Innovations'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.


FRX Innovations's Degree of Financial Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, FRX Innovations's Degree of Financial Leverage distribution charts can be found below:

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



FRX Innovations Degree of Financial Leverage Calculation

FRX Innovations's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.092 (Sep. 2023) / -0.173 (Sep. 2022) - 1 )/( -7.066 (Sep. 2023) / -10.047 (Sep. 2022) - 1 )
=-0.4682/-0.2967
=1.58***

* 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.


FRX Innovations  (STU:W2A) 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.


FRX Innovations Degree of Financial Leverage Related Terms

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


FRX Innovations Business Description

Traded in Other Exchanges
N/A
Address
200 Turnpike Road, Chelmsford, MA, USA, 01824
FRX Innovations Inc is a manufacturer of environmentally sustainable flame retardant solutions within the plastics and additives market that serve a number of large markets spanning electronics, automotive, electric vehicles (EV), and medical devices. The company manufactures products under the brand name Nofia. Its product portfolio consists of Nofia Polyphosphonates, which are produced using sustainable green chemistry principles such as a solvent-free production process, no waste byproducts, and atom efficiency; Nofia Homopolymers; Nofia Reactive Oligomers.

FRX Innovations Headlines

No Headlines