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Franchise Services of North America (Franchise Services of North America) Degree of Financial Leverage : 0.00 (As of Mar. 2017)


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What is Franchise Services of North America 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). Franchise Services of North America's Degree of Financial Leverage for the quarter that ended in Mar. 2017 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Franchise Services of North America's Degree of Financial Leverage or its related term are showing as below:

FCHAF'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.

Franchise Services of North America Degree of Financial Leverage Historical Data

The historical data trend for Franchise Services of North America'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.

Franchise Services of North America Degree of Financial Leverage Chart

Franchise Services of North America Annual Data
Trend Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
Degree of Financial Leverage
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Franchise Services of North America Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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Competitive Comparison of Franchise Services of North America's Degree of Financial Leverage

For the Rental & Leasing Services subindustry, Franchise Services of North America'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.


Franchise Services of North America's Degree of Financial Leverage Distribution in the Business Services Industry

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

* The bar in red indicates where Franchise Services of North America's Degree of Financial Leverage falls into.



Franchise Services of North America Degree of Financial Leverage Calculation

Franchise Services of North America's Degree of Financial Leverage for the quarter that ended in Mar. 2017 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0 (Mar. 2017) / 0 (Mar. 2016) - 1 )/( -0.117 (Mar. 2017) / 0.23 (Mar. 2016) - 1 )
=/-1.5087
=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.


Franchise Services of North America  (OTCPK:FCHAF) 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.


Franchise Services of North America Degree of Financial Leverage Related Terms

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Franchise Services of North America (Franchise Services of North America) Business Description

Traded in Other Exchanges
N/A
Address
1052 Highland Colony Parkway, Suite 204, Ridgeland, MS, USA, 39157
Franchise Services of North America Inc is a car rental franchisor in North America. The firm operates in the car, van and light truck rental space, alongside a range of insurance products, both business and personal, to its franchisees, the automobile industry, and consumers. It operates through its subsidiary, U-Save Auto Rental of America Inc. (U-Save). Its segments include Franchise, Insurance and Other. The Franchise segment is engaged in franchising to operate U-Save Auto Rental businesses in the United States. The Insurance segment which generates majority revenue is engaged in providing franchisees and independent auto rental operators with financial services related to insurance products in the United States.

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