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Dun & Bradstreet Holdings (Dun & Bradstreet Holdings) Degree of Financial Leverage : -65.87 (As of Dec. 2023)


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What is Dun & Bradstreet Holdings 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). Dun & Bradstreet Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was -65.87. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Dun & Bradstreet Holdings's Degree of Financial Leverage or its related term are showing as below:

DNB's Degree of Financial Leverage is ranked better than
99.25% of 664 companies
in the Capital Markets industry
Industry Median: 0.98 vs DNB: -65.87

Dun & Bradstreet Holdings Degree of Financial Leverage Historical Data

The historical data trend for Dun & Bradstreet Holdings'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.

Dun & Bradstreet Holdings Degree of Financial Leverage Chart

Dun & Bradstreet Holdings Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial 1.79 0.63 -0.25 -31.61 -65.87

Dun & Bradstreet Holdings 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 -31.61 -9.37 3.90 8.74 -65.87

Competitive Comparison of Dun & Bradstreet Holdings's Degree of Financial Leverage

For the Financial Data & Stock Exchanges subindustry, Dun & Bradstreet Holdings'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.


Dun & Bradstreet Holdings's Degree of Financial Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Dun & Bradstreet Holdings's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Dun & Bradstreet Holdings's Degree of Financial Leverage falls into.



Dun & Bradstreet Holdings Degree of Financial Leverage Calculation

Dun & Bradstreet Holdings'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
=( -0.11 (Dec. 2023) / -0.01 (Dec. 2022) - 1 )/( 140.8 (Dec. 2023) / 166 (Dec. 2022) - 1 )
=10/-0.1518
=-65.87***

* 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.


Dun & Bradstreet Holdings  (NYSE:DNB) 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.


Dun & Bradstreet Holdings Degree of Financial Leverage Related Terms

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


Dun & Bradstreet Holdings (Dun & Bradstreet Holdings) Business Description

Traded in Other Exchanges
N/A
Address
5335 Gate Parkway, Jacksonville, FL, USA, 32256
Dun & Bradstreet Holdings Inc is a provider of business decisioning data and analytics. The company operates in two segments: North America, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights in the United States and Canada; and International, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights directly in the U.K, Europe, Greater China, India and indirectly through its WWN alliances. The company generates maximum revenue from the North American region. Other services provided by the company include digital marketing, sales acceleration, and risk management among others.
Executives
Thomas H. Lee Equity Fund Viii, L.p. director, 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, BOSTON MA 02110
Thomas H. Lee Advisors, Llc director, 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Anthony Jr Pietrontone officer: Chief Accounting Officer C/O DUN & BRADSTREET HOLDINGS, INC., 5335 GATE PARKWAY, JACKSONVILLE FL 32256
Kirsten Marie Kliphouse director 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Bryan T. Hipsher officer: Chief Financial Officer C/O DUN & BRADSTREET HOLDINGS, INC., 5335 GATE PARKWAY, JACKSONVILLE FL 32256
Foley William P Ii director, 10 percent owner, other: Chairman of the Board FIDELITY NATIONAL FINANCIAL, INC., 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Anthony M Jabbour director, officer: Chief Executive Officer 601 RIVERSIDE AVE, JACKSONVILLE FL 32204
Richard N Massey director 900 S. SHACKLEFORD ROAD, SUITE 401, LITTLE ROCK AR 72211
Virginia Green Gomez officer: President, North America 5335 GATE PKWY, JACKSONVILLE FL 32256
Cannae Holdings, Inc. director, 10 percent owner C/O CANNAE HOLDINGS, INC., 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Chinh Chu director, 10 percent owner THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Thl Equity Fund Viii Investors (d&b), L.p. director, 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Black Knight Financial Services, Inc. director, 10 percent owner 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Dnb Holdco, Llc director, 10 percent owner 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Black Knight, Inc. director, 10 percent owner 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204