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BRT Apartments (BRT Apartments) Degree of Financial Leverage : 1.55 (As of Dec. 2023)


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What is BRT Apartments 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). BRT Apartments's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.55. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BRT's Degree of Financial Leverage is ranked worse than
73.6% of 678 companies
in the REITs industry
Industry Median: 1.065 vs BRT: 1.55

BRT Apartments Degree of Financial Leverage Historical Data

The historical data trend for BRT Apartments'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.

BRT Apartments Degree of Financial Leverage Chart

BRT Apartments Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.10 10.67 0.61 0.77 1.55

BRT Apartments Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.77 -5.04 1.41 1.51 1.55

Competitive Comparison of BRT Apartments's Degree of Financial Leverage

For the REIT - Residential subindustry, BRT Apartments'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.


BRT Apartments's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, BRT Apartments's Degree of Financial Leverage distribution charts can be found below:

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



BRT Apartments Degree of Financial Leverage Calculation

BRT Apartments's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.16 (Dec. 2023) / 2.66 (Dec. 2022) - 1 )/( 26.23 (Dec. 2023) / 66.434 (Dec. 2022) - 1 )
=-0.9398/-0.6052
=1.55***

* 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.


BRT Apartments  (NYSE:BRT) 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.


BRT Apartments Degree of Financial Leverage Related Terms

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


BRT Apartments (BRT Apartments) Business Description

Industry
Traded in Other Exchanges
Address
60 Cutter Mill Road, Suite 303, Great Neck, NY, USA, 11021
BRT Apartments Corp is a real estate investment trust company. The company is primarily focused on the ownership, operation, and development of multi-family properties. BRT also owns and operates other real estate assets. All of the Company's assets are comprised of multi-family real estate assets generally leased to tenants on a one-year basis.
Executives
Ryan Baltimore officer: Senior Vice President 60 CUTTER MILL ROAD, SUITE 303, GREAT NECK NY 11021
Mitchell Gould officer: VICE PRESIDENT
Gould Investors L P 10 percent owner 60 CUTTER MILL RD, STE 303, GREAT NECK NY 11021-3190
Jeffrey Gould officer: PRESIDENT AND CE0
Matthew J Gould director, officer: Senior Vice President
Mark H Lundy officer: VICE PRESIDENT
Isaac Kalish officer: Assistant Treasurer 60 CUTTER MILL ROAD, SUITE 303, GREAT NECK NY 11021
Louis C Grassi director 220 RXR PLAZA, UNIONDALE NY 11556
Carol Cicero director 516 TOWER TRACE, CANTON GA 30115
George Zweier officer: VICE PRESIDENT - CFO
Jonathan H Simon director 1020 PARK AVENUE, APARTMENT 10D, NEW YORK NY 10028
Jeffrey Rubin director 40 CUTTER MILL ROAD, SUITE 302, GREAT NECK NY 11021
Fredric H Gould director, officer: Chairman of Board 60 CUTTER MILL ROAD, SUITE 303, GREAT NECK NY 11021
Steven Rosenzweig officer: Vice President 60 CUTTER MILL ROAD, SUITE 303, GREAT NECK NY 11021
Alysa Block officer: Treasurer 60 CUTTER MILL ROAD, SUITE 303, GREAT NECK NY 11021