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Wotif.com Holdings (ASX:WTF) Degree of Financial Leverage : 0.00 (As of Jun. 2014)


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What is Wotif.com Holdings 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). Wotif.com Holdings's Degree of Financial Leverage for the quarter that ended in Jun. 2014 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Wotif.com Holdings's Degree of Financial Leverage or its related term are showing as below:

ASX:WTF's Degree of Financial Leverage is not ranked *
in the Interactive Media industry.
Industry Median: 0.98
* Ranked among companies with meaningful Degree of Financial Leverage only.

Wotif.com Holdings Degree of Financial Leverage Historical Data

The historical data trend for Wotif.com Holdings'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.

Wotif.com Holdings Degree of Financial Leverage Chart

Wotif.com Holdings Annual Data
Trend Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
Degree of Financial Leverage
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Wotif.com Holdings Semi-Annual Data
Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
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Competitive Comparison of Wotif.com Holdings's Degree of Financial Leverage

For the Internet Content & Information subindustry, Wotif.com Holdings'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.


Wotif.com Holdings's Degree of Financial Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Wotif.com Holdings's Degree of Financial Leverage distribution charts can be found below:

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



Wotif.com Holdings Degree of Financial Leverage Calculation

Wotif.com Holdings's Degree of Financial Leverage for the quarter that ended in Jun. 2014 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.203 (Jun. 2014) / 0.24 (Jun. 2013) - 1 )/( 60.375 (Jun. 2014) / 68.943 (Jun. 2013) - 1 )
=-0.1542/-0.1243
=1.24***

* 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.


Wotif.com Holdings  (ASX:WTF) 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.


Wotif.com Holdings Degree of Financial Leverage Related Terms

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Wotif.com Holdings (ASX:WTF) Business Description

Traded in Other Exchanges
N/A
Address
Wotif.com Holdings Limited is a provider of online accommodation, activity and flight booking services in Australasia. The company represents over 19,600+ properties in more than 66 countries with its headquarters in Australia and offices in New Zealand, UK, Singapore, Thailand, Malaysia and Canada.

Wotif.com Holdings (ASX:WTF) Headlines

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