What is Morgans Hotel Group Co 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).
Morgans Hotel Group Co's Degree of Financial Leverage for the quarter that ended in Sep. 2016 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Morgans Hotel Group Co's Degree of Financial Leverage or its related term are showing as below:
MHGC's Degree of Financial Leverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 0.94 * Ranked among companies with meaningful Degree of Financial Leverage only.
Morgans Hotel Group Co Degree of Financial Leverage Historical Data
The historical data trend for Morgans Hotel Group Co'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.
Morgans Hotel Group Co Degree of Financial Leverage Chart
Competitive Comparison of Morgans Hotel Group Co's Degree of Financial Leverage
For the Lodging subindustry, Morgans Hotel Group Co'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.
Morgans Hotel Group Co's Degree of Financial Leverage Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Morgans Hotel Group Co's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Morgans Hotel Group Co's Degree of Financial Leverage falls into.
Morgans Hotel Group Co Degree of Financial Leverage Calculation
Morgans Hotel Group Co's Degree of Financial Leverage for the quarter that ended in Sep. 2016 is calculated as:
* 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.
Morgans Hotel Group Co (NAS:MHGC) 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.
Morgans Hotel Group Co Degree of Financial Leverage Related Terms
Thank you for viewing the detailed overview of Morgans Hotel Group Co's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Morgans Hotel Group Co (Morgans Hotel Group Co) Business Description
Morgans Hotel Group Co was incorporated in the state of Delaware on October 19, 2005. The company is a fully-integrated lifestyle hospitality company that operates, owns, acquires, develops and redevelops boutique hotels in gateway cities and select resort markets in the United States, Europe and other international locations. The Company's portfolio of Morgans Hotel Group branded hotel properties and food and beverage operations and entities consisted of: three owned hotels, consisting of Hudson in New York, Delano South Beach in Miami Beach, and Clift in San Francisco comprising approximately 1,450 rooms, and the food and beverage operations located at these hotels; owned food and beverage operations, consisting of leasehold interests in the food and beverage operations located at Sanderson, in London, and Mandalay Bay in Las Vegas; two joint venture hotels, consisting of Mondrian South Beach in Miami Beach and Mondrian SoHo in New York, comprising approximately 500 rooms and the Company's investment in the food and beverage venture at Mondrian South Beach in Miami Beach; seven managed hotels, consisting of Royalton and Morgans in New York, Shore Club in Miami Beach, Mondrian in Los Angeles, Sanderson, St Martins Lane, and Mondrian London in London, comprising approximately 1,550 rooms; the Company's licensed hotel, Delano Las Vegas, comprising 1,117 rooms and franchised hotel, 10 Karakoy, in Istanbul, comprising 71 rooms; 90% controlling interest in TLG Acquisition LLC which operates numerous food and beverage and nightclub venues primarily in Las Vegas pursuant to management agreements with MGM Resorts International; and the Company's investments in certain hotels under development and other proposed properties. The Company is subject to numerous United States and international laws, including laws governing employees in its hotels in such areas as minimum wage and maximum working hours, overtime, working conditions, hiring and firing employees and work permits.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MHGC has been successfully added to your 