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Brainstorm Cell Therapeutics (Brainstorm Cell Therapeutics) Degree of Financial Leverage : 2.17 (As of Mar. 2024)


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What is Brainstorm Cell Therapeutics 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). Brainstorm Cell Therapeutics's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 2.17. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BCLI's Degree of Financial Leverage is ranked worse than
90.75% of 1502 companies
in the Biotechnology industry
Industry Median: 0.97 vs BCLI: 2.17

Brainstorm Cell Therapeutics Degree of Financial Leverage Historical Data

The historical data trend for Brainstorm Cell Therapeutics'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.

Brainstorm Cell Therapeutics Degree of Financial Leverage Chart

Brainstorm Cell Therapeutics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.81 0.05 1.64 -2.55 2.78

Brainstorm Cell Therapeutics 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 0.26 1.18 2.20 2.78 2.17

Competitive Comparison of Brainstorm Cell Therapeutics's Degree of Financial Leverage

For the Biotechnology subindustry, Brainstorm Cell Therapeutics'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.


Brainstorm Cell Therapeutics's Degree of Financial Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Brainstorm Cell Therapeutics's Degree of Financial Leverage distribution charts can be found below:

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



Brainstorm Cell Therapeutics Degree of Financial Leverage Calculation

Brainstorm Cell Therapeutics'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
=( -0.32 (Mar. 2024) / -0.65 (Mar. 2023) - 1 )/( -18.762 (Mar. 2024) / -24.498 (Mar. 2023) - 1 )
=-0.5077/-0.2341
=2.17***

* 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.


Brainstorm Cell Therapeutics  (NAS:BCLI) 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.


Brainstorm Cell Therapeutics Degree of Financial Leverage Related Terms

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


Brainstorm Cell Therapeutics (Brainstorm Cell Therapeutics) Business Description

Traded in Other Exchanges
Address
1325 Avenue of Americas, 28th Floor, New York, NY, USA, 10019
Brainstorm Cell Therapeutics Inc is a biotechnology company. The company is developing novel adult stem cell therapies for debilitating neurodegenerative disorders such as Amyotrophic Lateral Sclerosis (ALS, also known as Lou Gehrig's disease), Progressive Multiple Sclerosis (PMS), and Parkinson's disease (PD). Brainstorm's NurOwn, its proprietary process for the propagation of Mesenchymal Stem Cells (MSC) and differentiation into neurotrophic factor-(NTF) secreting cells (MSC-NTF), and their transplantation at, or near, the site of damage, offers the hope of more effectively treating neurodegenerative diseases.
Executives
Stacy Lindborg officer: EVP, Head Global Clin Research C/O BRAINSTORM CELL THERAPEUTICS, INC., 1325 AVENUE OF AMERICAS, 28TH FLR., NEW YORK NY 10019
Nir Naor director BRAINSTORM CELL THERAPEUTICS, INC., 1325 AVENUE OF AMERICAS, 28TH FLOOR, NEW YORK NY 10019
Kirk Taylor officer: Chief Medical Officer C/O BRAINSTORM CELL THERAPEUTICS INC., 1325 AVENUE OF AMERICAS, 28TH FLOOR, NEW YORK NY 10019
Menghisteab Bairu director C/O BRAINSTORM CELL THERAPEUTICS INC., 1325 AVENUE OF THE AMERICAS 28TH FL, NEW YORK NY 10019
Alla Patlis officer: See Remarks C/O BRAINSTORM CELL THERAPEUTICS, INC., 3 UNIVERSITY PLAZA DRIVE, SUITE 320, HACKENSACK NJ 07601
Anthony Waclawski officer: See Remarks C/O BRAINSTORM CELL THERAPEUTICS, INC., 1325 AVENUE OF THE AMERICAS 28TH FL, NEW YORK NY 10019
Chaim Lebovits officer: Chief Executive Officer 110 EAST 59TH STREET, NEW YORK NY 10019
David Setboun officer: EVP and COO C/O BRAINSTORM CELL THERAPEUTICS, INC., 1325 AVENUE OF AMERICAS, 28TH FLOOR, NEW YORK NY 10019
Acc International Holdings Ltd. other: Member of 10% owner group MORGAN & MORGAN BUILDING, PASEA ESTATE, ROAD TOWN, TORTOLA D8 VG 1110
Sankesh Abbhi director 3119 PONCE DE LEON, UNIT C, CORAL GABLES FL 33134
Jacob A Frenkel director 188 E. 70TH ST., #29A, NEW YORK NY 10021
Arturo Araya officer: Chief Commercial Officer C/O BRAINSTORM CELL THERAPEUTICS, INC., 3 UNIVERSITY PLAZA DRIVE, SUITE 320, HACKENSACK NJ 07601
Preetam Shah officer: EVP, CFO and Treasurer C/O BRAINSTORM CELL THERAPEUTICS, INC., 1325 AVENUE OF AMERICAS, 28TH FLR., NEW YORK NY 10019
Ralph Dr. Kern officer: COO and Chief Medical Officer C/O BRAINSTORM CELL THERAPEUTICS, INC., 3 UNIVERSITY PLAZA DRIVE, SUITE 320, HACKENSACK NJ 07601
Irit Arbel director 6 HADISHON STREEET, JERUSALEM, ISRAEL 96596 L3 00000

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