GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Alpine 4 Holdings Inc (NAS:ALPP) » Definitions » Degree of Financial Leverage

Alpine 4 Holdings (Alpine 4 Holdings) Degree of Financial Leverage : 0.47 (As of Jun. 2023)


View and export this data going back to 2016. Start your Free Trial

What is Alpine 4 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). Alpine 4 Holdings's Degree of Financial Leverage for the quarter that ended in Jun. 2023 was 0.47. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Alpine 4 Holdings's Degree of Financial Leverage or its related term are showing as below:

ALPP's Degree of Financial Leverage is ranked better than
73.57% of 507 companies
in the Conglomerates industry
Industry Median: 1 vs ALPP: 0.47

Alpine 4 Holdings Degree of Financial Leverage Historical Data

The historical data trend for Alpine 4 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.

Alpine 4 Holdings Degree of Financial Leverage Chart

Alpine 4 Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only -0.84 0.10 -0.08 0.22 1.27

Alpine 4 Holdings Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 -0.61 0.25 1.27 1.27 0.47

Competitive Comparison of Alpine 4 Holdings's Degree of Financial Leverage

For the Conglomerates subindustry, Alpine 4 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.


Alpine 4 Holdings's Degree of Financial Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Alpine 4 Holdings's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Alpine 4 Holdings's Degree of Financial Leverage falls into.



Alpine 4 Holdings Degree of Financial Leverage Calculation

Alpine 4 Holdings's Degree of Financial Leverage for the quarter that ended in Jun. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.81 (Jun. 2023) / -0.66 (Jun. 2022) - 1 )/( -18.192 (Jun. 2023) / -12.232 (Jun. 2022) - 1 )
=0.2273/0.4872
=0.47***

* 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.


Alpine 4 Holdings  (NAS:ALPP) 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.


Alpine 4 Holdings Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Alpine 4 Holdings's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Alpine 4 Holdings (Alpine 4 Holdings) Business Description

Traded in Other Exchanges
N/A
Address
2525 East Arizona Biltmore Circle, Suite 237, Phoenix, AZ, USA, 85016
Alpine 4 Holdings Inc is a holding company that acquires businesses in several industry segments namely Aerospace, Battery Tech, Defense Services, Technology, and Manufacturing, as either a Driver, Stabilizer, or Facilitator from the company's disruptive DSF business model. It focuses on how the incorporation of new technologies can drive innovation even in brick-and-mortar businesses, with an understanding of how technology and innovation can enhance businesses.
Executives
Winters Ii Charles W. director, officer: Chrmn of Board; Director 2525 EAST ARIZONA BILTMORE CIR, SUITE 237, PHOENIX AZ 85016
Kent Wilson director, officer: CEO; President; Secretary 2525 EAST ARIZONA BILTMORE CIRCLE, SUITE 237, PHOENIX AZ 85016
Ian Kantrowitz director, officer: VP of IR; Director of IR 4742 N. 24TH STREET, SUITE 300, PHOENIX AZ 85016
Scott W. Edwards director 946 E. LOBSTER TRAP LANE, TEMPE AZ 85283
David George Schmitt officer: CHIEF FINANCIAL OFFICER 4742 N. 24TH STREET, SUITE 300, PHOENIZ AZ 85016
Richard Chiang other: Previous Officer and Director 460 BRANNAN STREET SUITE 78064, SAN FRANCISCO CA 94107
Richard Battaglini director, 10 percent owner, officer: Chairman and President 934 W CORONADO ROAD, PHOENIX AZ 85007

Alpine 4 Holdings (Alpine 4 Holdings) Headlines

From GuruFocus