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AIRS (AirSculpt Technologies) Degree of Financial Leverage : 0.02 (As of Jun. 2024)


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What is AirSculpt Technologies 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). AirSculpt Technologies's Degree of Financial Leverage for the quarter that ended in Jun. 2024 was 0.02. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

AIRS's Degree of Financial Leverage is ranked better than
83.99% of 637 companies
in the Healthcare Providers & Services industry
Industry Median: 1.01 vs AIRS: 0.02

AirSculpt Technologies Degree of Financial Leverage Historical Data

The historical data trend for AirSculpt Technologies'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.

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AirSculpt Technologies Degree of Financial Leverage Chart

AirSculpt Technologies Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- -0.31 -1.67 -28.06 0.22

AirSculpt Technologies Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 0.10 0.65 0.22 0.08 0.02

Competitive Comparison of AirSculpt Technologies's Degree of Financial Leverage

For the Medical Care Facilities subindustry, AirSculpt Technologies'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.


AirSculpt Technologies's Degree of Financial Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, AirSculpt Technologies's Degree of Financial Leverage distribution charts can be found below:

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



AirSculpt Technologies Degree of Financial Leverage Calculation

AirSculpt Technologies's Degree of Financial Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.072 (Jun. 2024) / -0.23 (Jun. 2023) - 1 )/( 8.39 (Jun. 2024) / -0.213 (Jun. 2023) - 1 )
=-0.687/-40.3897
=0.02***

* 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.


AirSculpt Technologies  (NAS:AIRS) 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.


AirSculpt Technologies Degree of Financial Leverage Related Terms

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


AirSculpt Technologies Business Description

Traded in Other Exchanges
N/A
Address
1111 Lincoln Road, Suite 802, Miami Beach, FL, USA, 33139
AirSculpt Technologies Inc is a national provider of body contouring procedures delivering a premium consumer experience under its brand Elite Body Sculpture. At Elite Body Sculpture, company provide custom body contouring using proprietary AirSculpt method that removes unwanted fat in a minimally invasive procedure.
Executives
Todd Magazine director, officer: President and CEO 1111 LINCOLN ROAD, SUITE 802, MIAMI BEACH FL 33139
Thomas J Aaron director 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Dennis Dean officer: Chief Financial Officer 40 BURTON HILLS BOULEVARD SUITE 500, NASHVILLE TN 37215
Caroline Chu director 400 ALTON ROAD, UNIT TH-103M, MIAMI BEACH FL 33139
Kenneth Higgins director 400 ALTON ROAD, UNIT TH-103M, MIAMI BEACH FL 33139
Aaron Rollins director, 10 percent owner, officer: Chief Executive Officer 400 ALTON ROAD, UNIT TH-103M, MIAMI BEACH FL 33139
Adam T Feinstein director, 10 percent owner 40 BURTON HILLS BOULEVARD SUITE 500, NASHVILLE TN 37215
Ronald P. Zelhof officer: COO and President 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
Pamela L. Netzky director C/O AMPLIFY SNACK BRANDS, INC., 500 WEST 5TH STREET, AUSTIN TX 78701
Daniel Sollof director 400 ALTON ROAD, UNIT TH-103M, MIAMI BEACH FL 33139
Vscp Ebs Aggregator, L.p. director, 10 percent owner 428 GREENWICH STREET, NEW YORK NY 10013
Ebs Aggregator Blocker Holdings, Llc director, 10 percent owner 428 GREENWICH STREET, NEW YORK NY 10013