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Drone Guarder (Drone Guarder) Degree of Financial Leverage : 0.00 (As of Oct. 2018)


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What is Drone Guarder 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). Drone Guarder's Degree of Financial Leverage for the quarter that ended in Oct. 2018 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Drone Guarder's Degree of Financial Leverage or its related term are showing as below:

DRNG's Degree of Financial Leverage is not ranked *
in the Business Services industry.
Industry Median: 1.01
* Ranked among companies with meaningful Degree of Financial Leverage only.

Drone Guarder Degree of Financial Leverage Historical Data

The historical data trend for Drone Guarder'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.

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Drone Guarder Degree of Financial Leverage Chart

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Competitive Comparison of Drone Guarder's Degree of Financial Leverage

For the Security & Protection Services subindustry, Drone Guarder'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.


Drone Guarder's Degree of Financial Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Drone Guarder's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Drone Guarder's Degree of Financial Leverage falls into.



Drone Guarder Degree of Financial Leverage Calculation

Drone Guarder's Degree of Financial Leverage for the quarter that ended in Oct. 2018 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.016 (Oct. 2018) / 0 (Oct. 2017) - 1 )/( -1.999 (Oct. 2018) / -0.089 (Oct. 2017) - 1 )
=/21.4607
=0.00***

* 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.


Drone Guarder  (OTCPK:DRNG) 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.


Drone Guarder Degree of Financial Leverage Related Terms

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Drone Guarder (Drone Guarder) Business Description

Traded in Other Exchanges
N/A
Address
370 Amapola Avenue, Suite 200A, Torrance, CA, USA, 90501
Drone Guarder Inc is a security and surveillance products provider. The company focused on commercializing a drone enhanced home security system as a turnkey solution. The solution is app-based and includes a drone, infrared camera, and Android mobile app component: once an alarm has been triggered, the DroneGuarder will immediately take off from a wireless charging pad. The camera within the drone will record a video for a few seconds, process it and then send an alert if a threat is found. Its primary revenue model consists of selling home security systems directly to the clients.