GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Braemar PLC (OTCPK:BSEAF) » Definitions » Degree of Financial Leverage

Braemar (Braemar) Degree of Financial Leverage : 1.67 (As of Aug. 2023)


View and export this data going back to . Start your Free Trial

What is Braemar 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). Braemar's Degree of Financial Leverage for the quarter that ended in Aug. 2023 was 1.67. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BSEAF's Degree of Financial Leverage is ranked worse than
79.32% of 943 companies
in the Transportation industry
Industry Median: 1.04 vs BSEAF: 1.67

Braemar Degree of Financial Leverage Historical Data

The historical data trend for Braemar'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.

Braemar Degree of Financial Leverage Chart

Braemar Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 75.37 0.20 -0.12 4.39 -6.07

Braemar Semi-Annual Data
Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 -0.81 4.39 0.67 -6.07 1.67

Competitive Comparison of Braemar's Degree of Financial Leverage

For the Marine Shipping subindustry, Braemar'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.


Braemar's Degree of Financial Leverage Distribution in the Transportation Industry

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

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



Braemar Degree of Financial Leverage Calculation

Braemar's Degree of Financial Leverage for the quarter that ended in Aug. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.119 (Aug. 2023) / 0.533 (Aug. 2022) - 1 )/( 4.895 (Aug. 2023) / 18.523 (Aug. 2022) - 1 )
=-1.2233/-0.7357
=1.66***

* 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.


Braemar  (OTCPK:BSEAF) 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.


Braemar Degree of Financial Leverage Related Terms

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


Braemar (Braemar) Business Description

Industry
Traded in Other Exchanges
Address
Trafalgar Square, One Strand, London, GBR, WC2N 5HR
Braemar PLC provides advice in investment, chartering, and risk management to enable its clients to secure sustainable returns and mitigate risk in shipping and energy industry. The company's operating segment are, Chartering, Investment Advisory and Risk Advisory. The majority of the revenue for the company is generated from its Chartering business segment under which it provides cost-saving solutions that create and protect the deals for their clients. Geographically, the company has its presence in United Kingdom, Singapore, Australia, Switzerland, United States, Germany and Rest of the world. A substantial part of its overall revenue is generated from its business in United Kingdom.

Braemar (Braemar) Headlines

From GuruFocus