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Aethlon Medical (Aethlon Medical) Degree of Financial Leverage : 7.41 (As of Dec. 2023)


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What is Aethlon Medical 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). Aethlon Medical's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 7.41. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

AEMD's Degree of Financial Leverage is ranked worse than
97.11% of 830 companies
in the Medical Devices & Instruments industry
Industry Median: 0.99 vs AEMD: 7.41

Aethlon Medical Degree of Financial Leverage Historical Data

The historical data trend for Aethlon Medical'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.

Aethlon Medical Degree of Financial Leverage Chart

Aethlon Medical Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.79 -5.03 -3.27 0.24 -0.97

Aethlon Medical 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 0.51 -0.97 -2.31 4.93 7.41

Competitive Comparison of Aethlon Medical's Degree of Financial Leverage

For the Medical Devices subindustry, Aethlon Medical'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.


Aethlon Medical's Degree of Financial Leverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Aethlon Medical's Degree of Financial Leverage distribution charts can be found below:

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



Aethlon Medical Degree of Financial Leverage Calculation

Aethlon Medical'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
=( -5.05 (Dec. 2023) / -7.48 (Dec. 2022) - 1 )/( -12.628 (Dec. 2023) / -13.207 (Dec. 2022) - 1 )
=-0.3249/-0.0438
=7.41***

* 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.


Aethlon Medical  (NAS:AEMD) 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.


Aethlon Medical Degree of Financial Leverage Related Terms

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


Aethlon Medical (Aethlon Medical) Business Description

Traded in Other Exchanges
Address
11555 Sorrento Valley Road, Suite 203, San Diego, CA, USA, 92121
Aethlon Medical Inc is a medical technology company. The company is focused on addressing unmet needs in health and biodefense. The company is focused on the development of Hemopurifier, a clinical-stage therapeutic device designed to combat cancer and eliminate life-threatening viruses from the circulatory system.
Executives
Nicolas Gikakis director 11555 SORRENTO VALLEY ROAD, SUITE 203, SAN DIEGO CA 92121
Lee D Arnold officer: Chief Scientific Officer C/O ASSEMBLY BIOSCIENCES, INC., 99 HUDSON STREET, 5TH FLOOR, NEW YORK NY 10013
Angela Rossetti director PALATIN TECHNOLOGIES, INC., 4B CEDAR BROOK DRIVE, CRANBURY NJ 08512
Steven P Larosa officer: Chief Medical Officer 9635 GRANITE RIDGE DRIVE SUITE 100, SAN DIEGO CA 92123
Chetan Shah director 9 GRACE HILL COURT, TITUSVILLE NJ 08560
Fisher Charles J Jr director C/O AETHLON MEDICAL, INC., 9635 GRANITE RIDGE DR., SUITE 100, SAN DIEGO CA 92123
Guy F. Cipriani director 1727 EAGLERIDGE DRIVE, BELLINGHAM WA 98226
Sabrina Martucci Johnson director 11119 NORTH TORREY PINES ROAD, SUITE 200, LA JOLLA CA 92037
Rodell Timothy C Jr officer: Interim CEO 201 MIDLAND AVE, ASPEN CO 81611
Weiner Family Revocable Trust Ellen R. 10 percent owner 10645 N. TATUM BOULEVARD, SUITE 200-166, PHOENIX AZ 85028
Phillip A Ward director 8910 UNIVERSITY CENTER LANE #660, SAN DIEGO CA 92122
Thomas V Wornham director 8910 UNIVERSITY CENTER LANE #660, SAN DIEGO CA 92122
Rodney S Kenley director, officer: President 9635 GRANITE RIDGE DRIVE, SUITE 100, SAN DIEGO CA 92123
James B Frakes officer: Chief Financial Officer 9635 GRANITE RIDGE DRIVE, SUITE 100, SAN DIEGO CA 92123
Barry Franklyn S Jr director 1141 DELAWARE AVENUE #3N, BUFFALO NY 14209