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Aware (AWRE) Degree of Financial Leverage : -3.47 (As of Sep. 2024)


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What is Aware 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). Aware's Degree of Financial Leverage for the quarter that ended in Sep. 2024 was -3.47. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

AWRE's Degree of Financial Leverage is ranked better than
96.39% of 2658 companies
in the Software industry
Industry Median: 0.96 vs AWRE: -3.47

Aware Degree of Financial Leverage Historical Data

The historical data trend for Aware'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.

Aware Degree of Financial Leverage Chart

Aware Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.52 -0.06 0.71 -2.26 -20.17

Aware Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -52.77 -20.17 -9.05 -1.00 -3.47

Competitive Comparison of Aware's Degree of Financial Leverage

For the Software - Application subindustry, Aware'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.


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

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

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



Aware Degree of Financial Leverage Calculation

Aware's Degree of Financial Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.36 (Sep. 2024) / -0.23 (Sep. 2023) - 1 )/( -5.858 (Sep. 2024) / -6.997 (Sep. 2023) - 1 )
=0.5652/-0.1628
=-3.47***

* 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.


Aware  (NAS:AWRE) 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.


Aware Degree of Financial Leverage Related Terms

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


Aware Business Description

Industry
Traded in Other Exchanges
N/A
Address
76 Blanchard Road, Burlington, MA, USA, 01803
Aware Inc is a provider of software and services to the biometrics industry. The company's software products are used in government and commercial biometrics systems to identify or authenticate people. The government applications of biometrics systems include border control, visa applicant screening, law enforcement, national defense, intelligence, secure credentialing, access control, and background checks. Its commercial applications include user authentication for login to mobile devices, computers, networks, and software programs, user authentication for financial transactions and purchases. Its geographical segments include the United States, the United Kingdom, and the Rest of the world, out of which it derives maximum revenue from United States.
Executives
David K Traverse officer: Principal Financial Officer 108 ADAMS STREET, DUNSTABLE MA 01827
Robert A Eckel director, officer: CEO and President C/O AWARE, INC., 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
Stafford John S Iii director, 10 percent owner 230 SOUTH LASALLE STREET 400, CHICAGO IL 60604
David Brian Barcelo officer: Chief Financial Officer 15 DAWN CIRCLE, ANDOVER MA 01810
Ronin Trading, Llc 10 percent owner 350 N. ORLEANS STREET, 2N, CHICAGO IL 60654
Craig A Herman officer: Chief Revenue Officer 15 ABBOT STREET, MARBLEHEAD MA 01945
Mohamed Lazzouni officer: Chief Technology Officer C/O VIISAGE TECHNOLOGY, INC., 296 CONCORD ROAD, BILLIERCA MA 01821
Gary Evee director 36 CONCETTA SASS DRIVE, RANDOLPH MA 02368
Peter R. Faubert director 50 NAGOG PARK, ACTON MA 01720
Ronin Capital, Llc 10 percent owner 350 N. ORLEANS, SUITE 2N, CHICAGO IL 60654
Brian D Connolly director 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
Brent P Johnstone director 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
Richard P Moberg director C/O AWARE INC, 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
David J Martin officer: Chief Financial Officer
Adrian F Kruse director C/O AWARE INC, 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730

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