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Web.com Group (Web.com Group) Degree of Financial Leverage : 0.00 (As of Jun. 2018)


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What is Web.com Group 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). Web.com Group's Degree of Financial Leverage for the quarter that ended in Jun. 2018 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Web.com Group's Degree of Financial Leverage or its related term are showing as below:

WEB's Degree of Financial Leverage is not ranked *
in the Interactive Media industry.
Industry Median: 0.99
* Ranked among companies with meaningful Degree of Financial Leverage only.

Web.com Group Degree of Financial Leverage Historical Data

The historical data trend for Web.com Group'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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Web.com Group Degree of Financial Leverage Chart

Web.com Group Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Degree of Financial Leverage
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Web.com Group Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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Competitive Comparison of Web.com Group's Degree of Financial Leverage

For the Internet Content & Information subindustry, Web.com Group'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.


Web.com Group's Degree of Financial Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Web.com Group's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Web.com Group's Degree of Financial Leverage falls into.



Web.com Group Degree of Financial Leverage Calculation

Web.com Group's Degree of Financial Leverage for the quarter that ended in Jun. 2018 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.99 (Jun. 2018) / 0.4 (Jun. 2017) - 1 )/( 80.074 (Jun. 2018) / 85.549 (Jun. 2017) - 1 )
=1.475/-0.064
=-23.05***

* 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.


Web.com Group  (NAS:WEB) 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.


Web.com Group Degree of Financial Leverage Related Terms

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


Web.com Group (Web.com Group) Business Description

Traded in Other Exchanges
N/A
Address
Web.com Group Inc provides a range of internet services to small businesses to help them compete and succeed online. The company offers a range of Web services and products that enable small businesses to establish, maintain, promote, and optimize their online presence. It meets the needs of small businesses anywhere along their lifecycle with affordable, subscription-based solutions including domains, hosting, website design and management, search engine optimization, online marketing campaigns, local sales leads, social media, mobile products and E-commerce solutions. Geographically, the group operates through the market of United States and derives revenue through source of subscription.
Executives
Kevin M Carney officer: Executive Vice President 12735 GRAN BAY PARKWAY WEST, BUILDING 200, JACKSONVILLE FL 32258
Timothy I Maudlin director 18739 VOGEL FARM TRAIL, EDEN PRAIRIE MN 55347
Hugh M Durden director
Timothy Cost director
Ahmet H Okumus 10 percent owner C/O OKUMUS FUND MANAGEMENT LTD., 767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10022
Okumus Opportunistic Value Fund Ltd. 10 percent owner CRAIGMUIR CHAMBERS, SUITE 71, ROAD TOWN, TORTOLA D8 VG 1110
Okumus Fund Management Ltd. 10 percent owner 767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10017
Anton J Levy director 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gapstar Llc 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gapco Gmbh & Co Kg 10 percent owner, other: *See Remarks C/O GENERAL ATLANTIC SERVICE COMPANY, 55 EAST 52ND ST. 32ND FLOOR, NEW YORK NY 10055
Management Gmbh Gapco 10 percent owner, other: *See Remarks C/O GENERAL ATLANTIC SERVICE COMPANY, 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gap-w, Llc 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic Genpar, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic Partners 83, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR NEW YORK NY 10055