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SilverCrest Mines (SilverCrest Mines) Degree of Financial Leverage : 0.00 (As of Jun. 2015)


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What is SilverCrest Mines 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). SilverCrest Mines's Degree of Financial Leverage for the quarter that ended in Jun. 2015 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

SVLC's Degree of Financial Leverage is not ranked *
in the Metals & Mining industry.
Industry Median: 0.99
* Ranked among companies with meaningful Degree of Financial Leverage only.

SilverCrest Mines Degree of Financial Leverage Historical Data

The historical data trend for SilverCrest Mines'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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SilverCrest Mines Degree of Financial Leverage Chart

SilverCrest Mines Annual Data
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Degree of Financial Leverage
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SilverCrest Mines Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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Competitive Comparison of SilverCrest Mines's Degree of Financial Leverage

For the Gold subindustry, SilverCrest Mines'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.


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

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

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



SilverCrest Mines Degree of Financial Leverage Calculation

SilverCrest Mines's Degree of Financial Leverage for the quarter that ended in Jun. 2015 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.003 (Jun. 2015) / 0.022 (Jun. 2014) - 1 )/( 3.498 (Jun. 2015) / 14.597 (Jun. 2014) - 1 )
=-0.8636/-0.7604
=1.14***

* 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.


SilverCrest Mines  (AMEX:SVLC) 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.


SilverCrest Mines Degree of Financial Leverage Related Terms

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SilverCrest Mines (SilverCrest Mines) Business Description

Traded in Other Exchanges
N/A
Address
SilverCrest Mines Inc was incorporated on May 22, 1973 under the laws of Ontario as Equitable Mines Limited and changed its name to Magic Foods Inc. on July 24, 1985. The Company was continued on May 15, 1998 under the laws of British Columbia as "Lucre Ventures Ltd. The name of the Company was changed to "Strathclair Ventures Ltd." on September 5, 2001 and to "SilverCrest Mines Inc." on May 23, 2003. The Company is a Canadian precious metals producer with a silver and gold asset base and an operating mine located in Mexico. The Company's principal property is the 100% owned Santa Elena Project, which includes the Santa Elena Mine, located 150 kilometres northeast of Hermosillo, near Banamichi in the State of Sonora, Mexico. The Santa Elena Mine is a high-grade, epithermal silver and gold deposit that is currently being operated as an open pit heap leach operation. The Company's other principal property is the La Joya Property in Durango state, Mexico which contains a large polymetallic deposit that is being explored with the aim of developing silver, copper, gold and tungsten resources. The Company also has a portfolio of other mineral properties, which comprise of the Cruz de Mayo Project (Mexico), the Ermitano Property (Mexico), the Silver Angel Project (Mexico) and the El Zapote Project (El Salvador).

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