GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Roth CH Acquisition V Co (NAS:ROCL) » Definitions » Degree of Financial Leverage

Roth CH Acquisition V Co (Roth CH Acquisition V Co) Degree of Financial Leverage : 1.28 (As of Mar. 2024)


View and export this data going back to 2022. Start your Free Trial

What is Roth CH Acquisition V 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). Roth CH Acquisition V Co's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.28. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Roth CH Acquisition V Co's Degree of Financial Leverage or its related term are showing as below:

ROCL's Degree of Financial Leverage is ranked worse than
68.8% of 468 companies
in the Diversified Financial Services industry
Industry Median: 0.74 vs ROCL: 1.28

Roth CH Acquisition V Co Degree of Financial Leverage Historical Data

The historical data trend for Roth CH Acquisition V 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.

Roth CH Acquisition V Co Degree of Financial Leverage Chart

Roth CH Acquisition V Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- - -3.91 0.16

Roth CH Acquisition V Co Quarterly Data
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 1.73 1.85 19.56 0.16 1.28

Competitive Comparison of Roth CH Acquisition V Co's Degree of Financial Leverage

For the Shell Companies subindustry, Roth CH Acquisition V 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.


Roth CH Acquisition V Co's Degree of Financial Leverage Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Roth CH Acquisition V Co's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Roth CH Acquisition V Co's Degree of Financial Leverage falls into.



Roth CH Acquisition V Co Degree of Financial Leverage Calculation

Roth CH Acquisition V Co's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.141 (Mar. 2024) / 0.12 (Mar. 2023) - 1 )/( -0.578 (Mar. 2024) / 0.829 (Mar. 2023) - 1 )
=-2.175/-1.6972
=1.28***

* 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.


Roth CH Acquisition V Co  (NAS:ROCL) 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.


Roth CH Acquisition V Co Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Roth CH Acquisition V Co's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Roth CH Acquisition V Co (Roth CH Acquisition V Co) Business Description

Traded in Other Exchanges
N/A
Address
888 San Clemente Drive, Suite 400, Newport Beach, CA, USA, 92660
Roth CH Acquisition V Co is a blank check company.
Executives
Ryan Hultstrand officer: Co-Chief Operating Officer 888 SAN CLEMENTE DRIVE SUITE 400, NEWPORT BEACH CA 92660
Sam Chawla director 1640 MARENGO STREET, 6TH FLOOR, LOS ANGELES CA 90033
Gordon J Roth 10 percent owner, officer: Chief Financial Officer 26 CORPORATE PLAZA, NEWPORT BEACH CA 92660
John C Lipman director, 10 percent owner, officer: Co-Chief Executive Officer C/O CARTER SECURITIES LLC, 767 THIRD AVENUE 27TH FLOOR, NEW YORK NY 10017
Rick Hartfiel officer: Co-President 222 SOUTH NINTH STREET, SUITE 350, MINNEAPOLIS MN 55402
Byron Roth director, 10 percent owner, officer: Co-Chief Executive Officer 888 SAN CLEMENTE DRIVE, SUITE 400, NEWPORT BEACH CA 92660
Aaron Gurewitz officer: Co-President 888 SAN CLEMENTE DRIVE, SUITE 400, NEWPORT BEACH CA 92660
Adam Rothstein director 101 CROSS HWY, WESTPORT CA 92610
Cr Financial Holdings, Inc. 10 percent owner 888 SAN CLEMENTE DRIVE, SUITE 400, NEWPORT BEACH CA 92660
Andrew Costa officer: Co-Chief Operating Officer 888 SAN CLEMENTE DRIVE SUITE 400, NEWPORT BEACH CA 92660
Matthew Day officer: Co-Chief Operating Officer 888 SAN CLEMENTE DRIVE SUITE 400, NEWPORT BEACH CA 92660
Chlm Sponsor-5 Llc 10 percent owner 888 SAN CLEMENTE DRIVE SUITE 400, NEWPORT BEACH CA 92660
Pamela Jean Ellison director 888 SAN CLEMENTE DRIVE SUITE 400, NEWPORT BEACH CA 92660

Roth CH Acquisition V Co (Roth CH Acquisition V Co) Headlines