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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Avenue Therapeutics's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 135.81. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Avenue Therapeutics's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Avenue Therapeutics'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.
Avenue Therapeutics Annual Data | |||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | -0.89 | 1.02 | 1.00 | 0.47 | -0.14 |
Avenue Therapeutics Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Degree of Financial Leverage | Get a 7-Day Free Trial | -2.61 | -0.53 | -0.75 | -0.14 | 135.81 |
For the Biotechnology subindustry, Avenue Therapeutics'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.
For the Biotechnology industry and Healthcare sector, Avenue Therapeutics's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Avenue Therapeutics's Degree of Financial Leverage falls into.
Avenue Therapeutics's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:
Degree of Financial Leverage | = | % Change in Earnings per Share (Diluted)** | / | % Change in EBIT |
= | ( -1187.625 (Mar. 2024) / -138.241 (Mar. 2023) - 1 ) | / | ( -7.235 (Mar. 2024) / -6.852 (Mar. 2023) - 1 ) | |
= | 7.591 | / | 0.0559 | |
= | 135.81*** |
* 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.
Avenue Therapeutics (NAS:ATXI) 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.
Thank you for viewing the detailed overview of Avenue Therapeutics's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Rosenwald Lindsay A Md | director | 375 PARK AVE, NEW YORK NY 10152 |
Fortress Biotech, Inc. | 10 percent owner | 1111 KANE CONCOURSE, SUITE 301, BAY HARBOR ISLANDS FL 33154 |
Invagen Pharmaceuticals, Inc. | 10 percent owner | SITE B, 7 OSER AVE., HAUPPAUGE NY 11788 |
Alexandra Maclean | officer: Chief Executive Officer | C/O AVENUE THERAPEUTICS, INC., 2 GANSEVOORT STREET, 9TH FLOOR, NEW YORK NC 10014 |
Faith L. Charles | director | ABEONA THERAPEUTICS INC., 1330 AVENUE OF THE AMERICAS - FLOOR 33, NEW YORK NY 10019 |
David Jin | officer: Int. PEO, Int. PFO, and COO | C/O AVENUE THERAPEUTICS, INC., 1140 AVENUE OF THE AMERICAS, FLOOR 9, NEW YORK NY 10036 |
Joseph Walter Vazzano | officer: Chief Financial Officer | 1330 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019 |
Neil Herskowitz | director | 2109 BROADWAY, SUITE 206, NEW YORK NY 10023 |
Curtis Gale Oltmans | director | C/O ARRAY BIOPHARMA INC., 3200 WALNUT ST., BOULDER CO 80301 |
Jay D Kranzler | director | 4350 EXECUTIVE DRIVE, SUITE 325, SAN DIEGO CA 92121 |
Lucy Lu | director, officer: President, CEO | THE FEMALE HEALTH COMPANY, 4400 BISCAYNE BOULEVARD, SUITE 888, MIAMI FL 33137 |
Elizabeth Garrett Ingram | director | 30930 RUSSELL RANCH ROAD, WESTLAKE VILLAGE CA 91362 |
Thomas Gregory Moore | director | C/O AKORN, INC., 1925 WEST FIELD COURT, SUITE 300, LAKE FOREST IL 60045 |
Nishant Saxena | director | CIPLA HOUSE, PENINSULA BUSINESS PARK, LOWER PAREL, MUMBAI K7 400013 |
Jaideep Ashok Gogtay | director | CIPLA LTD., MUMBA CENTRAL, BESIDE CITY CENTER, MUMBAI K7 400008 |
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