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Aircastle (Aircastle) Degree of Financial Leverage : 0.00 (As of Dec. 2019)


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What is Aircastle 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). Aircastle's Degree of Financial Leverage for the quarter that ended in Dec. 2019 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

AYR's Degree of Financial Leverage is not ranked *
in the Business Services industry.
Industry Median: 1.02
* Ranked among companies with meaningful Degree of Financial Leverage only.

Aircastle Degree of Financial Leverage Historical Data

The historical data trend for Aircastle'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.

Aircastle Degree of Financial Leverage Chart

Aircastle Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Degree of Financial Leverage
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Aircastle Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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Competitive Comparison of Aircastle's Degree of Financial Leverage

For the Rental & Leasing Services subindustry, Aircastle'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.


Aircastle's Degree of Financial Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Aircastle's Degree of Financial Leverage distribution charts can be found below:

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



Aircastle Degree of Financial Leverage Calculation

Aircastle's Degree of Financial Leverage for the quarter that ended in Dec. 2019 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 2.06 (Dec. 2019) / 3.17 (Dec. 2018) - 1 )/( 420.813 (Dec. 2019) / 483.301 (Dec. 2018) - 1 )
=-0.3502/-0.1293
=2.71***

* 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.


Aircastle  (NYSE:AYR) 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.


Aircastle Degree of Financial Leverage Related Terms

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


Aircastle (Aircastle) Business Description

Traded in Other Exchanges
N/A
Address
c/o Aircastle Advisor LLC, 201 Tresser Boulevard, Suite 400, Stamford, CT, USA, 06901
Aircastle Ltd is engaged in acquiring, leasing, and selling of commercial jet aircraft to airlines. The company has only single operating segment which is leasing, financing, selling, and managing commercial flight equipment.
Executives
Michael J Cave director C/O ESTERLINE TECHNOLOGIES CORP, 500 108TH AVE NE, SUITE 1500, BELLEVUE WA 98004
Douglas A Hacker director P O BOX 66100-WHQLD, CHICAGO IL 60666
Ronald W Allen director P O BOX 1734, ATLANTA GA 30301
Ronald Merriman director 6175 NANCY RIDGE, SAN DIEGO CA 92121
Charles W. Pollard director 50 CRESCENT AVENUE, SECOND CLIFF, SCITUATE MA 02066
Ontario Teachers Pension Plan Board 10 percent owner 5650 YONGE STREET, TORONTO A6 M2M 4H5
Peter V Ueberroth director CONTRARIAN GROUP INC, 1071 CAMELBACK ST, NEWPORT BEACH CA 92660
Wesley R Edens director 1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105
Fig Llc 10 percent owner 1345 AVENUE OF THE AMERICAS, 46 FLOOR, NEW YORK NY 10105
Fortress Investment Group Llc 10 percent owner 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Fortress Operating Entity I Lp 10 percent owner 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Fig Corp. 10 percent owner 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Adams Joseph P. Jr. director C/O FORTRESS INVESTMENT GROUP LLC, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Mark S Zeidman officer: Chief Financial Officer 1661 WORTHINGTON ROAD, SUITE 100, W PALM BEACH FL 33409
Fortress Investment Holdings Llc 10 percent owner 1251 AVENUE OF THE AMERICAS, 16TH FLOOR, NEW YORK NY 10020