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Franklin Mining (Franklin Mining) Degree of Financial Leverage : 0.00 (As of Sep. 2002)


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What is Franklin Mining 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). Franklin Mining's Degree of Financial Leverage for the quarter that ended in Sep. 2002 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

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

Franklin Mining Degree of Financial Leverage Historical Data

The historical data trend for Franklin Mining'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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Franklin Mining Degree of Financial Leverage Chart

Franklin Mining Annual Data
Trend Dec92 Dec93 Dec94 Dec95 Dec96 Dec97 Dec98 Dec99 Dec00 Dec01
Degree of Financial Leverage
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Franklin Mining Quarterly Data
Dec97 Mar98 Jun98 Sep98 Dec98 Mar99 Jun99 Sep99 Dec99 Mar00 Jun00 Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02
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Competitive Comparison of Franklin Mining's Degree of Financial Leverage

For the Other Precious Metals & Mining subindustry, Franklin Mining'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.


Franklin Mining's Degree of Financial Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Franklin Mining's Degree of Financial Leverage distribution charts can be found below:

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



Franklin Mining Degree of Financial Leverage Calculation

Franklin Mining's Degree of Financial Leverage for the quarter that ended in Sep. 2002 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -507.785 (Sep. 2002) / -52.754 (Sep. 2001) - 1 )/( -0.281 (Sep. 2002) / -0.445 (Sep. 2001) - 1 )
=8.6255/-0.3685
=-23.40***

* 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.


Franklin Mining  (OTCPK:FMNJ) 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.


Franklin Mining Degree of Financial Leverage Related Terms

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Franklin Mining (Franklin Mining) Business Description

Traded in Other Exchanges
N/A
Address
215 west Bandera Road, Suite 114-459, Boerne, TX, USA, 78006
Franklin Mining Inc is engaged in the exploration, development, and mining of precious and non-ferrous metals, including gold, silver, lead, copper, and zinc. Its principal mining properties are Franklin Mines, located near Idaho Springs in clear creek country, Colorado, and the Franklin Mill, located on the site of Franklin Mines.

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