Martha Stewart Living Omnimedia (FRA:MLV) Degree of Financial Leverage : 0.00 (As of Sep. 2015)

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What is Martha Stewart Living Omnimedia 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). Martha Stewart Living Omnimedia's Degree of Financial Leverage for the quarter that ended in Sep. 2015 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Martha Stewart Living Omnimedia's Degree of Financial Leverage or its related term are showing as below:

FRA:MLV's Degree of Financial Leverage is not ranked ^*
in the Media - Diversified industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Financial Leverage only.

Martha Stewart Living Omnimedia Degree of Financial Leverage Historical Data

The historical data trend for Martha Stewart Living Omnimedia'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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Martha Stewart Living Omnimedia Degree of Financial Leverage Chart

Martha Stewart Living Omnimedia Annual Data

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Degree of Financial Leverage

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Martha Stewart Living Omnimedia Quarterly Data
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Competitive Comparison of Martha Stewart Living Omnimedia's Degree of Financial Leverage

For the Publishing subindustry, Martha Stewart Living Omnimedia'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.

Martha Stewart Living Omnimedia's Degree of Financial Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Martha Stewart Living Omnimedia's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Martha Stewart Living Omnimedia's Degree of Financial Leverage falls into.

Martha Stewart Living Omnimedia Degree of Financial Leverage Calculation

Martha Stewart Living Omnimedia's Degree of Financial Leverage for the quarter that ended in Sep. 2015 is calculated as:

Degree of Financial Leverage	=	% Change in Earnings per Share (Diluted)^**	/	% Change in EBIT
	=	( -0.021 (Sep. 2015) / -0.073 (Sep. 2014) - 1 )	/	( 0.153 (Sep. 2015) / -7.177 (Sep. 2014) - 1 )
	=	-0.7123	/	-1.0213
	=	0.70^***

** 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.

Martha Stewart Living Omnimedia (FRA:MLV) 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.

Martha Stewart Living Omnimedia Degree of Financial Leverage Related Terms

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Martha Stewart Living Omnimedia (FRA:MLV) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Martha Stewart Living Omnimedia Inc (FRA:MLV) » Definitions » Degree of Financial Leverage

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Address

Website

http://www.marthastewart.com

Martha Stewart Living Omnimedia Inc is an integrated media and merchandising company providing consumers with inspiring lifestyle content and well-designed, high-quality products. The Company is organized into three business segments: Publishing, Broadcasting and Merchandising. This combination enables it to cross-promote its content and products. Its Publishing segment consists of operations related to magazine and book publishing and digital distribution, mainly through its website, marthastewart.com. Its Broadcasting business segment consists of operations relating to the production of television programming, the domestic and international distribution of its library of programming in existing and repurposed formats. Its Merchandising segment consists of operations related to the design of merchandise and related packaging, collateral and advertising materials, and the licensing of various proprietary trademarks in connection with retail programs conducted through a number of retailers and manufacturers. The Company generally owns the copyrights in the programs it produce for television and radio distribution. In 2013, Martha Stewart's Cooking School season 2 and Martha Bakes seasons 1 and 2 aired on PBS. On January 31, 2013, the Company entered into a new two-year agreement with Sirius XM Radio to produce approximately 10 hours of original programming each week. This agreement with Sirius XM Radio replaces its historical Martha Stewart Living Radio channel with a daily radio show hosted by Martha Stewart, and other MSLO talent, on SiriusXM Stars. In 2010, the Company launched the Martha Stewart Living product line at The Home Depot, which is currently available at all of The Home Depots stores in the United States and Canada, as well as on homedepot.com and Home Decorators Collection catalog business. It competes with the internet businesses of the stores and other websites that sell similar retail goods.

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