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Brunswick (Brunswick) Degree of Financial Leverage : 1.00 (As of Mar. 2024)


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What is Brunswick 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). Brunswick's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BC's Degree of Financial Leverage is ranked worse than
76.22% of 1274 companies
in the Vehicles & Parts industry
Industry Median: 0.97 vs BC: 1.00

Brunswick Degree of Financial Leverage Historical Data

The historical data trend for Brunswick'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.

Brunswick Degree of Financial Leverage Chart

Brunswick Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.66 -1.16 1.27 1.01 1.53

Brunswick Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.46 -1.17 2.30 1.53 1.00

Competitive Comparison of Brunswick's Degree of Financial Leverage

For the Recreational Vehicles subindustry, Brunswick'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.


Brunswick's Degree of Financial Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Brunswick's Degree of Financial Leverage distribution charts can be found below:

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



Brunswick Degree of Financial Leverage Calculation

Brunswick'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
=( 5.38 (Mar. 2024) / 8.3 (Mar. 2023) - 1 )/( 617.3 (Mar. 2024) / 952.5 (Mar. 2023) - 1 )
=-0.3518/-0.3519
=1.00***

* 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.


Brunswick  (NYSE:BC) 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.


Brunswick Degree of Financial Leverage Related Terms

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


Brunswick (Brunswick) Business Description

Traded in Other Exchanges
Address
26125 N. Riverwoods Boulevard, Suite 500, Mettawa, IL, USA, 60045-3420
Brunswick is a leading manufacturer in the marine recreation industry. The company has more than 60 brands delivering products across propulsion (outboard, sterndrive, and inboard engines, propulsion-related controls, rigging, and propellers), parts, accessories, and technology, and boats (including well-known brands like Boston Whaler and Sea Ray). It also owns numerous Freedom Boat Club (shared ownership) locations as well as Boateka, which facilitates transactions in the used boat market. Brunswick's focus surrounds building the innovative marine and recreational experiences, technologies, and connections supported by quality and innovation.
Executives
Nancy E Cooper director 26 CHERRY TREE LANE, RIVERSIDE CT 06878
David V Singer director 13024 BALLANTYNE CORPORATE PL, SUITE 900, CHARLOTTE NC 28277
Brenna Preisser officer: V.P. & CHIEF HR OFFICER C/O BRUNSWICK CORPORATION, 1 N. FIELD COURT, LAKE FOREST IL 60045
David M Foulkes officer: VP&Pres Marine Cons Solutions C/O BRUNSWICK CORPORATION, 26125 N RIVERWOOD BLVD. SUITE 500, METTAWA IL 60045-3420
Ryan M Gwillim officer: Senior Vice President & CFO C/O BRUNSWICK CORPORATION, 26125 N. RIVERWOODS BLVD #500, METTAWA IL 60045
Christopher F Dekker officer: V.P. GEN COUNSEL & SECRETARY BRUNSWICK CORPORATION, 1 N FIELD COURT, LAKE FOREST IL 60045
John G Buelow officer: EVP & President Mercury Marine 26125 N. RIVERWOODS BLVD. #500, METTAWA IL 60045
Randall S Altman officer: Vice President and Controller C/O BRUNSWICK CORPORATION, 26125 N RIVERWOODS BLVD, METTAWA IL 60045
Jill Wrobel officer: EVP Chief Human Resources Off C/OBRUNSWICK CORPORATION, 26125 N. RIVERWOODS BLVD. #500, METTAWA IL 60045
Mary Ann Wright director 486 S. PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Reginald Fils-aime director C/O GAMESTOP CORP., 625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Aine Denari officer: VP, President Boat Group C/O BRUNSWICK CORPORATION, 26125 N. RIVERWOODS BLVD. #500, METTAWA IL 60045
Brett A Dibkey officer: Vice President C/O BRUNSWICK CORPORATION, 26125 N. RIVERWOODS BLVD. #500, METTAWA IL 60045
William Metzger officer: VICE PRESIDENT AND TREASURER C/O BRUNSWICK CORP, 1 N FIELD COURT, LAKE FOREST IL 60045
Christopher Drees officer: PRESIDENT - MERCURY MARINE C/O BRUNSWICK CORPORATION, 26125 N. RIVERWOODS BLVD SUITE 500, METTAWA IL 60045