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Team (TISI) Degree of Financial Leverage : 0.65 (As of Mar. 2024)


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What is Team 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). Team's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.65. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TISI's Degree of Financial Leverage is ranked better than
70.94% of 1022 companies
in the Business Services industry
Industry Median: 1.01 vs TISI: 0.65

Team Degree of Financial Leverage Historical Data

The historical data trend for Team'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.

Team Degree of Financial Leverage Chart

Team Annual Data
Trend May14 May15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.48 0.09 0.52 0.92 0.62

Team 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 0.84 0.76 2.63 0.62 0.65

Competitive Comparison of Team's Degree of Financial Leverage

For the Specialty Business Services subindustry, Team'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.


Team's Degree of Financial Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Team's Degree of Financial Leverage distribution charts can be found below:

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



Team Degree of Financial Leverage Calculation

Team'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
=( -15.53 (Mar. 2024) / -29.12 (Mar. 2023) - 1 )/( -13.876 (Mar. 2024) / -49.612 (Mar. 2023) - 1 )
=-0.4667/-0.7203
=0.65***

* 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.


Team  (NYSE:TISI) 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.


Team Degree of Financial Leverage Related Terms

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


Team (TISI) Business Description

Industry
Traded in Other Exchanges
Address
13131 Dairy Ashford, Suite 600, Sugar Land, TX, USA, 77478
Team Inc is a provider of specialty industrial services, including inspection, engineering assessment and mechanical repair and remediation required in maintaining high temperature and high-pressure piping systems and vessels that are utilized in refining, petrochemical, and others. The company operates in two segments namely Inspection and Heat Treating Group and Mechanical Services Group. Inspection and Heat Treating Group provides non-destructive testing services for the process, pipeline and power sectors and others. The Mechanical Services Group provides call-out and turnaround services under both on-stream and shut down circumstances.
Executives
Evan S. Lederman director C/O FIR TREE PARTNERS, 55 WEST 46TH STREET, 29TH FLOOR, NEW YORK NY 10036
Edward J. Stenger director C/O MOTORS LIQUIDATION COMPANY, 300 RENAISSANCE DRIVE, DETROIT MI 48625
Nelson M Haight officer: Chief Financial Officer 110 B JACKSON BLVD, HOUSTON TX 77006
Jeffery Gerald Davis director PO BOX 336, BURTON TX 77835
Anthony R Horton director 12377 MERIT DRIVE, SUITE 1700, DALLAS TX 75251
Michael J Caliel director 1800 WEST LOOP SOUTH, SUITE 500, HOUSTON TX 77027
Corre Opportunities Qualified Master Fund, Lp 10 percent owner 12 EAST 49TH STREET, 40TH FLOOR, NEW YORK NY 10017
Corre Horizon Fund, Lp 10 percent owner CONYERS TRUST COMPANY (CAYMAN) LTD, CRICKET SQUARE, HUTCHINS DR, BOX 2681, GRAND CAYMAN E9 KY1-1111
Corre Horizon Ii Fund, Lp 10 percent owner 12 EAST 49TH STREET, 40TH FLOOR, NEW YORK NY 10017
Corre Partners Management, Llc 10 percent owner 12 EAST 49TH STREET, SUITE 4003, NEW YORK NY 10017
J Michael Anderson director
Matthew E Acosta officer: VP & Chief Accounting Officer 13131 DAIRY ASHFORD, SUITE 600, SUGAR LAND TX 77478
Candice Koederitz director 937 TAHOE BOULEVARD, INCLINE VILLAGE NV 89451
Young Robert James Iii officer: President, AID 13131 DAIRY ASHFORD, SUITE 600, SUGAR LAND TX 77478
James Chadwick Murray officer: President, MOS 13131 DAIRY ASHFORD, SUITE 600, SUGAR LAND TX 77478

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