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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Aeva Technologies's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 2.04. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Aeva Technologies's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Aeva Technologies'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.
Aeva Technologies Annual Data | |||||||||||
Trend | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||
Degree of Financial Leverage | - | 1.09 | 1.06 | 0.73 | 1.61 |
Aeva Technologies Quarterly Data | ||||||||||||||||||
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 | 0.89 | 0.77 | 0.56 | 1.61 | 2.04 |
For the Software - Infrastructure subindustry, Aeva Technologies'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.
For the Software industry and Technology sector, Aeva Technologies's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Aeva Technologies's Degree of Financial Leverage falls into.
Aeva Technologies'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 |
= | ( -3.12 (Mar. 2024) / -3.45 (Mar. 2023) - 1 ) | / | ( -147.866 (Mar. 2024) / -155.148 (Mar. 2023) - 1 ) | |
= | -0.0957 | / | -0.0469 | |
= | 2.04*** |
* 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.
Aeva Technologies (NYSE:AEVA) 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.
Thank you for viewing the detailed overview of Aeva Technologies's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Stephen Paul Zadesky | director | 555 ELLIS STREET, MOUNTAIN VIEW CA 94043 |
Sylebra Capital Ltd | director, 10 percent owner | 28 HENNESSY ROAD, 20TH FLOOR, WAN CHAI, HONG KONG K3 00000 |
Soroush Salehian Dardashti | director, 10 percent owner, officer: Chief Executive Officer | C/O AEVA TECHNOLOGIES, INC., 555 ELLIS STREET, MOUNTAIN VIEW CA 94043 |
Erin L Polek | director | 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121 |
Eberle Christopher G Jr | director | 14 E. 4TH ST SUITE 405, NEW YORK NY 10012 |
Daniel Patrick Gibson | 10 percent owner | 400 FAIRVIEW AVENUE NORTH, SUITE 1200, SEATTLE WA 98109 |
Saurabh Sinha | officer: Chief Financial Officer | C/O AEVA TECHNOLOGIES, INC., 555 ELLIS STREET, MOUNTAIN VIEW CA 94043 |
Peter Hebert | 10 percent owner | C/O LUX VENTURES, 295 MADISON AVE, 24TH FLOOR, NEW YORK NY 10017 |
Shahin Farshchi | director | 11740 WILSHIRE BLVD, #A1309, LOS ANGELES CA 90025 |
Hrach Simonian | director | 285 RIVERSIDE AVE., SUITE 250, WESTPORT CT 06880 |
Mina Rezk | director, 10 percent owner, officer: President & CTO | C/O AEVA TECHNOLOGIES, INC., 555 ELLIS STREET, MOUNTAIN VIEW CA 94043 |
Josh Wolfe | 10 percent owner | C/O LUX HEALTH TECH ACQUISITION CORP., 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010 |
Lux Co-invest Opportunities, L.p. | 10 percent owner | C/O LUX CAPITAL MANAGEMENT, 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010 |
Lux Co-invest Partners, Llc | 10 percent owner | C/O LUX CAPITAL, 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010 |
Lux Venture Partners Iv, Llc | 10 percent owner | 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010 |
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