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AGYS (Agilysys) Degree of Financial Leverage : -2.37 (As of Mar. 2025)


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What is Agilysys 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). Agilysys's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was -2.37. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

AGYS's Degree of Financial Leverage is ranked better than
94.96% of 2659 companies
in the Software industry
Industry Median: 0.97 vs AGYS: -2.37

Agilysys Degree of Financial Leverage Historical Data

The historical data trend for Agilysys'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.

Agilysys Degree of Financial Leverage Chart

Agilysys Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.84 0.90 1.22 17.52 -2.37

Agilysys Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 17.52 9.91 10.13 -4.22 -2.37

Competitive Comparison of Agilysys's Degree of Financial Leverage

For the Software - Application subindustry, Agilysys'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.


Agilysys's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Agilysys's Degree of Financial Leverage distribution charts can be found below:

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


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Agilysys Degree of Financial Leverage Calculation

Agilysys's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.82 (Mar. 2025) / 3.17 (Mar. 2024) - 1 )/( 27.164 (Mar. 2025) / 20.684 (Mar. 2024) - 1 )
=-0.7413/0.3133
=-2.37***

* 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.


Agilysys  (NAS:AGYS) 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.


Agilysys Degree of Financial Leverage Related Terms

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


Agilysys Business Description

Industry
Traded in Other Exchanges
Address
3655 Brookside Parkway, Suite 300, Alpharetta, GA, USA, 30022
Agilysys Inc provides hospitality software delivering cloud-native SaaS and on-premise solutions for hotels, resorts, cruise lines, casinos, corporate foodservice management, restaurants, universities, stadiums, and healthcare facilities. The company's software solutions include point-of-sale (POS), property management (PMS), inventory and procurement, payments, and related applications that manage and enhance the entire guest journey. It derives maximum revenue from the provision of software subscription and maintenance services, followed by the provision of professional services, and the sale of products (proprietary software licenses, third-party hardware, and operating systems). Agilysys operates across North America, Europe, the Middle East, Asia-Pacific, and India.
Executives
John Mutch other: See Explanation of Responses C/O PEREGRINE SYSTEMS, INC., 3611 VALLEY CENTRE DRIVE, SAN DIEGO CA 92130
Wood William David Iii officer: Chief Financial Officer 1000 WINWARD CONCOURSE, #250, ALPHARETTA GA 30005
Chris J Robertson officer: Controller 1000 WINDWARD CONCOURSE, ALPHARETTA GA 30005
Melvin L Keating director 18 DRIFTWOOD DRIVE, LIVINGSTON NJ 07039
Kyle C Badger officer: SVP, GC & Secretary 40W267 KESLINGER ROAD, LAFOX IL 60147
Ramesh Srinivasan director, officer: President & CEO
Mak Capital Fund Lp 10 percent owner 590 MADISON AVENUE, 9TH FLOOR, NEW YORK NY 10022
Jerry C Jones director 301 E. DAVE WARD DRIVE, CONWAY AR 72032
Michael A Kaufman 10 percent owner 590 MADISON AVENUE, 9TH FLOOR, NEW YORK NY 10022
Donald A Colvin director ONE CAESARS PALACE DRIVE, LAS VEGAS NV 89109
Prabuddha Biswas officer: CTO & SVP of Technology 3380 146TH PL SE, BELLEVUE WA 98007
Donald Anthony Demarinis officer: Senior Vice President of Sales 1000 WINDWARD CONCOURSE, SUITE 250, ALPHARETTA GA 30005
Laveti Sridhar officer: VP of Est. Prod. & Cust. Supp. 1000 WINDWARD CONCOURSE, SUITE 250, ALPHARETTA GA 30005
Jebaseelan Kingsley officer: VP, Professional Services 1000 WINDWARD CONCOURSE #250, ALPHARETTA GA 30005
Jacks Robert L. Jr. officer: VP of Professional Services 6775 EDMOND STREET, SUITE 100, LAS VEGAS NV 89118