GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Helen Of Troy Ltd (STU:HT2) » Definitions » Degree of Financial Leverage

Helen Of Troy (STU:HT2) Degree of Financial Leverage : 0.43 (As of Aug. 2024)


View and export this data going back to 2015. Start your Free Trial

What is Helen Of Troy 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). Helen Of Troy's Degree of Financial Leverage for the quarter that ended in Aug. 2024 was 0.43. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Helen Of Troy's Degree of Financial Leverage or its related term are showing as below:

STU:HT2's Degree of Financial Leverage is ranked better than
77.22% of 1866 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs STU:HT2: 0.43

Helen Of Troy Degree of Financial Leverage Historical Data

The historical data trend for Helen Of Troy'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.

Helen Of Troy Degree of Financial Leverage Chart

Helen Of Troy Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.59 1.15 2.68 1.57 0.78

Helen Of Troy Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.37 0.58 0.78 0.56 0.43

Competitive Comparison of Helen Of Troy's Degree of Financial Leverage

For the Household & Personal Products subindustry, Helen Of Troy'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.


Helen Of Troy's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Helen Of Troy's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Helen Of Troy's Degree of Financial Leverage falls into.



Helen Of Troy Degree of Financial Leverage Calculation

Helen Of Troy's Degree of Financial Leverage for the quarter that ended in Aug. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 5.509 (Aug. 2024) / 5.42 (Aug. 2023) - 1 )/( 221.601 (Aug. 2024) / 206.568 (Aug. 2023) - 1 )
=0.0164/0.0728
=0.23***

* 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.


Helen Of Troy  (STU:HT2) 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.


Helen Of Troy Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Helen Of Troy's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Helen Of Troy Business Description

Traded in Other Exchanges
Address
2 Church Street, Clarendon House, Hamilton, BMU, HM 11
Helen Of Troy Ltd is a consumer products company offering creative products and solutions for its customers through a diversified portfolio of brands. It has two operating segments: Home & Outdoor segment provides a broad range of consumer products for home activities such as food preparation, cooking, cleaning, and organization; as well as products for outdoor and on-the-go activities such as hydration, food storage, backpacks, and travel gear, and The Beauty & Wellness segment provides beauty and wellness products including mass and prestige market beauty appliances, prestige market liquid-based hair and personal care products, and wellness devices including thermometers, water and air filtration systems, humidifiers, and fans.

Helen Of Troy Headlines

No Headlines