What is Diamond Resorts International 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).
Diamond Resorts International's Degree of Financial Leverage for the quarter that ended in Jun. 2016 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Diamond Resorts International's Degree of Financial Leverage or its related term are showing as below:
DRII's Degree of Financial Leverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 0.93 * Ranked among companies with meaningful Degree of Financial Leverage only.
Diamond Resorts International Degree of Financial Leverage Historical Data
* 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.
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Diamond Resorts International Degree of Financial Leverage Chart
Competitive Comparison of Diamond Resorts International's Degree of Financial Leverage
For the Resorts & Casinos subindustry, Diamond Resorts International'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.
Diamond Resorts International's Degree of Financial Leverage Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Diamond Resorts International's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Diamond Resorts International's Degree of Financial Leverage falls into.
Diamond Resorts International Degree of Financial Leverage Calculation
Diamond Resorts International's Degree of Financial Leverage for the quarter that ended in Jun. 2016 is calculated as:
* 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.
Diamond Resorts International (NYSE:DRII) 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.
Diamond Resorts International Degree of Financial Leverage Related Terms
Thank you for viewing the detailed overview of Diamond Resorts International's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Diamond Resorts International (Diamond Resorts International) Business Description
Diamond Resorts International Inc was incorporated as a Delaware corporation on January 11, 2013. The Company provides hospitality and vacation ownership services. The Company has an ownership base of more than 527,000 owner-families, or members, and a network of 307 vacation destinations located in 33 countries throughout the continental United States (U.S.), Hawaii, Canada, Mexico, the Caribbean, Central America, South America, Europe, Asia, Australia and Africa. Its resort network includes 93 resort properties with approximately 11,000units that they manage and 210 affiliated resorts and hotels and four cruise itineraries. The Company offers Vacations of a LifetimeTM--a simple way to acquire a lifetime of vacations at top destinations worldwide. The Company also manages seven multi-resort trusts. The Company operates the front desks, provide housekeeping, conduct maintenance and manage human resources services. It also operates, or outsource the operation of, amenities such as golf courses, food and beverage venues and retail shops, and the company provides an online reservation system, a customer service contact center, rental services, billing services, account collections, accounting and treasury functions and communications and information technology services. In addition to resort services, key components of its business are the Clubs, which enable its members to use their points to stay at resorts in its network. The Clubs offer its members a range of other benefits, such as the opportunity to purchase various products and services including consumer electronics, home appliances and insurance products from third parties at discounted prices. The Company's clubs include THE Club, which is the primary Club sold, and provides members access to all resorts in its network and offers the full range of member services, as well as other Clubs that enable their members to use their points to stay at specified resorts in its network and provide their members with a more limited offering of benefits. The Company refers to THE Club and other Club offerings as "the Clubs." . The vacation ownership industry enables individuals and families to purchase VOIs, which facilitates shared ownership and use of fully-furnished vacation accommodations at a particular resort or network of resorts. The Company markets and sells VOIs that provide access to its network of 93 Diamond Resorts managed resorts and 210 affiliated resorts and hotels and four cruise itineraries. The Company provides loans to eligible customers who purchase VOIs through its U.S., Mexican and St. Maarten sales centers and choose to finance their purchase. In marketing and selling VOIs, the company competes against the vacation ownership divisions of several established hospitality companies. These companies include Bluegreen Corporation, Disney (Disney Vacation Club), Four Seasons Resorts and Hotels, Hilton (Hilton Grand Vacations), Marriott Vacations Worldwide Corporation
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