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Empire State Realty Trust (Empire State Realty Trust) Degree of Financial Leverage : 2.67 (As of Dec. 2023)


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What is Empire State Realty Trust 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). Empire State Realty Trust's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 2.67. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Empire State Realty Trust's Degree of Financial Leverage or its related term are showing as below:

ESRT's Degree of Financial Leverage is ranked worse than
89.04% of 675 companies
in the REITs industry
Industry Median: 1.07 vs ESRT: 2.67

Empire State Realty Trust Degree of Financial Leverage Historical Data

The historical data trend for Empire State Realty Trust'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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Empire State Realty Trust Degree of Financial Leverage Chart

Empire State Realty Trust 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 1.60 2.13 -1.23 -4.30 2.67

Empire State Realty Trust 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 -1.98 7.94 4.38 2.67 -

Competitive Comparison of Empire State Realty Trust's Degree of Financial Leverage

For the REIT - Diversified subindustry, Empire State Realty Trust'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.


Empire State Realty Trust's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Empire State Realty Trust's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Empire State Realty Trust's Degree of Financial Leverage falls into.



Empire State Realty Trust Degree of Financial Leverage Calculation

Empire State Realty Trust's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.3 (Dec. 2023) / 0.22 (Dec. 2022) - 1 )/( 188.606 (Dec. 2023) / 165.964 (Dec. 2022) - 1 )
=0.3636/0.1364
=2.67***

* 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.


Empire State Realty Trust  (NYSE:ESRT) 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.


Empire State Realty Trust Degree of Financial Leverage Related Terms

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


Empire State Realty Trust (Empire State Realty Trust) Business Description

Traded in Other Exchanges
Address
111 West 33rd Street, 12th Floor, New York, NY, USA, 10120
Empire State Realty Trust operates as a pure-play greater New York and Manhattan-focused REIT, featuring its landmark Empire State Building office and observation deck. The company owns and operates around 9.4 million square feet of office space, about 80% of which is located in Manhattan.
Executives
Hannah Y Yang director C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Tassell Christina Van director C/O 111 RIVER STREET, HOBOKEN NJ 07030
Stephen Horn officer: Chief Accounting Officer 255 WEST 94TH STREET, NEW YORK NY 10025
Grant Hill director 121 ORANGE AVE, SUITE 1500, ORLANDO FL 32801
Robert Paige Hood director C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Christina Chiu officer: EVP and CFO C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Patricia Han director 600 OFFICE CENTER DRIVE, FORT WASHINGTON PA 19034
David A Karp director, officer: EVP and CFO C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, NEW YORK NY 10120
Quark Holding Llc 10 percent owner P.O. BOX 23224 OOREDOO TOWER, DIPLOMATIC AREA STREET, WEST BAY, DOHA S3 S3
Thomas J Derosa director C/O WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
Salvatore Michael Giliberto director C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Steven J Gilbert director 540 MADISON AVE, 40TH FL, NEW YORK NY 10022
Robinson James D Iv director 130 EAST 59TH STREET, NEW YORK NY 10022
William H Berkman director 650 MADISON AVE, 25TH FL, NEW YORK NY 10022
Leslie D. Biddle director 111 WEST 33RD STREET 12TH FLOOR, NEW YORK NY 10120