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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Walgreens Boots Alliance's Degree of Financial Leverage for the quarter that ended in Feb. 2024 was 0.53. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Walgreens Boots Alliance's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Walgreens Boots Alliance'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.
Walgreens Boots Alliance Annual Data | |||||||||||||||||||||
Trend | Aug14 | Aug15 | Aug16 | Aug17 | Aug18 | Aug19 | Aug20 | Aug21 | Aug22 | Aug23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 0.63 | 1.15 | 3.19 | 1.38 | 0.81 |
Walgreens Boots Alliance Quarterly Data | ||||||||||||||||||||
May19 | Aug19 | Nov19 | Feb20 | May20 | Aug20 | Nov20 | Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | Feb23 | May23 | Aug23 | Nov23 | Feb24 | |
Degree of Financial Leverage | Get a 7-Day Free Trial | 0.89 | 0.86 | 0.81 | 1.18 | 0.53 |
For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance'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.
For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Walgreens Boots Alliance's Degree of Financial Leverage falls into.
Walgreens Boots Alliance's Degree of Financial Leverage for the quarter that ended in Feb. 2024 is calculated as:
Degree of Financial Leverage | = | % Change in Earnings per Share (Diluted)** | / | % Change in EBIT |
= | ( -7 (Feb. 2024) / -3.65 (Feb. 2023) - 1 ) | / | ( -13664 (Feb. 2024) / -4975 (Feb. 2023) - 1 ) | |
= | 0.9178 | / | 1.7465 | |
= | 0.53*** |
* 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.
Walgreens Boots Alliance (NAS:WBA) 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.
Thank you for viewing the detailed overview of Walgreens Boots Alliance's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Nancy M Schlichting | director | 200 WILMOT ROAD, DEERFIELD IL 60015 |
Timothy C Wentworth | director, officer: Chief Executive Officer | C/O EXPRESS SCRIPTS HOLDING COMPANY, ONE EXPRESS WAY, ST. LOUIS MO 63121 |
Richard P. Gates | officer: SVP, Chief Pharmacy Officer | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Neal J. Sample | officer: EVP, Chief Information Officer | 200 VESEY STREET, NEW YORK NY 10285 |
Todd Heckman | officer: Interim Global Controller | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Polen Thomas E Jr | director | BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417 |
John Patrick Driscoll | officer: EVP, Pres. U.S. Healthcare | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Rosalind G Brewer | director, officer: CEO | C/O MOLSON COORS BREWING COMPANY, 1225 17TH STREET, SUITE 3200, DENVER CO 80202 |
Kevin M. Ban | officer: EVP, Chief Medical Officer | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Bryan C Hanson | director | ZIMMER BIOMET HOLDINGS, 345 E. MAIN STREET, WARSAW IN 46580 |
Henry Lee Cooper | officer: EVP, Pres. Walgreens Pharmacy | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Tracey D Brown | officer: SVP, Pres., Walgreens Retail | 675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010 |
Inderpal S Bhandari | director | C/O WALGREENS BOOTS ALLIANCE, INC., DEERFIELD IL 60015 |
Steven J Shulman | director | 1564 NE EXPRESSWAY, ATTN: BJ PURCELL, ATLANTA GA 30329 |
Holly May | officer: EVP, Global Chief HR Officer | 6301 FITCH PATH, NEW ALBANY OH 43054 |
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