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C&J Energy Services (C&J Energy Services) Degree of Financial Leverage : 0.00 (As of Jun. 2019)


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What is C&J Energy Services 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). C&J Energy Services's Degree of Financial Leverage for the quarter that ended in Jun. 2019 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for C&J Energy Services's Degree of Financial Leverage or its related term are showing as below:

CJ's Degree of Financial Leverage is not ranked *
in the Oil & Gas industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Financial Leverage only.

C&J Energy Services Degree of Financial Leverage Historical Data

The historical data trend for C&J Energy Services'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.

C&J Energy Services Degree of Financial Leverage Chart

C&J Energy Services Annual Data
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C&J Energy Services Quarterly Data
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Competitive Comparison of C&J Energy Services's Degree of Financial Leverage

For the Oil & Gas Equipment & Services subindustry, C&J Energy Services'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.


C&J Energy Services's Degree of Financial Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, C&J Energy Services's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where C&J Energy Services's Degree of Financial Leverage falls into.



C&J Energy Services Degree of Financial Leverage Calculation

C&J Energy Services's Degree of Financial Leverage for the quarter that ended in Jun. 2019 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -4.76 (Jun. 2019) / 1.78 (Jun. 2018) - 1 )/( -223.684 (Jun. 2019) / 94.588 (Jun. 2018) - 1 )
=-3.6742/-3.3648
=1.09***

* 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.


C&J Energy Services  (NYSE:CJ) 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.


C&J Energy Services Degree of Financial Leverage Related Terms

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


C&J Energy Services (C&J Energy Services) Business Description

Industry
Traded in Other Exchanges
N/A
Address
3990 Rogerdale Road, Houston, TX, USA, 77042
C&J Energy Services is an oil and gas equipment and services company operating in North America. The company provides oilfield and rig services to upstream exploration and production companies. Its three main business segments are completion services, well construction and intervention services, and well support services. Completion services generate most of the company's revenue and include fracturing services and cased-hole wireline and pumping services. The well construction and intervention services segment consists of cementing and coiled tubing services. The company's well support services segment includes rig services, fluid management services, and other special well site services. The company generates most of its revenue in the United States.
Executives
Sterling Renshaw officer: See Remarks 3990 ROGERDALE RD., HOUSTON TX 77042
John J Kennedy director C/O EDGEN GROUP INC., 18444 HIGHLAND ROAD, BATON ROUGE LA 70809
Michael Roemer director 10375 RICHMOND AVENUE, SUITE 2000, HOUSTON TX 77042
Patrick M Murray director 1177 ENCLAVE PARKWAY, SUITE 300, HOUSTON TX 77077
Steven L Mueller director
William D. Driver officer: See Remarks 10375 RICHMOND AVENUE, SUITE 2000, HOUSTON TX 77042
Michael S Galvan officer: See Remarks 3990 ROGERDALE RD., HOUSTON TX 77042
Van Gaalen Jan Kees officer: Chief Financial Officer 10205 WESTHEIMER, SUITE 1000, HOUSTON TX 77042
Danielle E. Hunter officer: See Remarks 3990 ROGERDALE RD., HOUSTON TX 77042
Amy H Nelson director 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Stuart M Brightman director 25025 INTERSTATE 45 NORTH, SUITE 600, THE WOODLANDS TX 77380
Solus Alternative Asset Management Lp 10 percent owner 25 MAPLE STREET, 2ND FLOOR, SUMMIT NJ 07901
Christopher Pucillo 10 percent owner C/O SOLUS ALTERNATIVE ASSET MANAGEMENT, 25 MAPLE STREET, 2ND FLOOR, SUMMIT NJ 07901
Solus Gp Llc 10 percent owner C/O SOLUS ALTERNATIVE ASSET MANAGEMENT, 25 MAPLE STREET, 2ND FLOOR, SUMMIT NJ 07901
Stephen A Schwarzman 10 percent owner C/O BLACKSTONE INC., 345 PARK AVE, NEW YORK NY 10154