GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Weis Markets Inc (NYSE:WMK) » Definitions » Degree of Financial Leverage

Weis Markets (Weis Markets) Degree of Financial Leverage : 1.34 (As of Dec. 2023)


View and export this data going back to 1965. Start your Free Trial

What is Weis Markets 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). Weis Markets's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.34. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

WMK's Degree of Financial Leverage is ranked worse than
67.77% of 301 companies
in the Retail - Defensive industry
Industry Median: 1.04 vs WMK: 1.34

Weis Markets Degree of Financial Leverage Historical Data

The historical data trend for Weis Markets'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.

Weis Markets Degree of Financial Leverage Chart

Weis Markets 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 3.61 0.81 0.83 2.10 1.34

Weis Markets 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 2.10 -0.63 0.13 0.76 1.34

Competitive Comparison of Weis Markets's Degree of Financial Leverage

For the Grocery Stores subindustry, Weis Markets'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.


Weis Markets's Degree of Financial Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Weis Markets's Degree of Financial Leverage distribution charts can be found below:

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



Weis Markets Degree of Financial Leverage Calculation

Weis Markets'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
=( 3.86 (Dec. 2023) / 4.65 (Dec. 2022) - 1 )/( 137.186 (Dec. 2023) / 157.052 (Dec. 2022) - 1 )
=-0.1699/-0.1265
=1.34***

* 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.


Weis Markets  (NYSE:WMK) 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.


Weis Markets Degree of Financial Leverage Related Terms

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


Weis Markets (Weis Markets) Business Description

Traded in Other Exchanges
N/A
Address
1000 S. Second Street, P.O. Box 471, Sunbury, PA, USA, 17801-0471
Weis Markets Inc is a U.S.-based company that is principally engaged in retailing food products in Pennsylvania and surrounding states. The company's products consist of center-store goods, fresh goods, pharmacy services, fuel, and other. The center-store goods include groceries, dairy products, frozen foods, alcoholic beverage, and general merchandise items. The fresh goods include meats, seafood, floral, prepared foods, and bakery products. The center-store goods and fresh goods jointly account for the majority of the company's total revenue.
Executives
Robert G. Gleeson officer: SVP, Merchandising & Marketing 1000 SOUTH 2ND STREET, PO BOX 471, SUNBURY PA 17801
Kurt A Schertle officer: Sr. VP Merch. and Marketing 1000 SOUTH SECOND STREET, P.O. BOX 471, SUNBURY PA 17801-0471
Michael T Lockard officer: SVP, CFO and Treasurer 1000 SOUTH 2ND STREET, PO BOX 471, SUNBURY PA 17801
Jennifer Weis other: Member of a 10% owner group C/O WEIS MARKETS, INC., 1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801
Zeh Richard Gregory Jr officer: SVP, Chief Information Officer 1000 SOUTH 2ND STREET, PO BOX 471, SUNBURY PA 17801
Scott F Frost officer: SVP, Chief Financial Officer 1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801
Wayne S Bailey officer: Vice President Grocery Merch.
Jonathan H Weis director, officer: Vice President and Secretary
Dennis G Hatchell director 305 GREGSON DRIVE, CARY NC 27511
Gerrald B Silverman director 207 CROSS STREET, BELMONT MA 02478
Lauth Edward John Iii director 485 SCENERY DRIVE, STATE COLLEGE PA 16801
Harold G Graber officer: Vice President Real Estate
Patricia R. Weis Marital Trust 10 percent owner C/O WEIS MARKETS, INC., 1000 SOUTH, SECOND STREET, P.O. BOX 471, SUNBURY PA 17801
Weis Collen Ross other: Member of a 10% owner group C/O WEIS MARKETS, INC., 1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801
Kathryn Jane Zox other: Member of a 10% owner group 1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801

Weis Markets (Weis Markets) Headlines

From GuruFocus

Weis Markets Announces Quarterly Dividend

By PRNewswire PRNewswire 04-29-2021

Weis Markets Announces Quarterly Dividend

By PRNewswire PRNewswire 07-15-2021

WEIS MARKETS REPORTS FIRST QUARTER 2022 RESULTS

By PRNewswire PRNewswire 05-02-2022

WEIS MARKETS REPORTS THIRD QUARTER 2022 RESULTS

By PRNewswire PRNewswire 10-31-2022

Weis Markets Announces Quarterly Dividend

By PRNewswire PRNewswire 10-28-2021