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Comarco (Comarco) Degree of Financial Leverage : 0.00 (As of Oct. 2017)


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What is Comarco 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). Comarco's Degree of Financial Leverage for the quarter that ended in Oct. 2017 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CMRO's Degree of Financial Leverage is not ranked *
in the Hardware industry.
Industry Median: 0.99
* Ranked among companies with meaningful Degree of Financial Leverage only.

Comarco Degree of Financial Leverage Historical Data

The historical data trend for Comarco'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.

Comarco Degree of Financial Leverage Chart

Comarco Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Degree of Financial Leverage
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Comarco Quarterly Data
Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
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Competitive Comparison of Comarco's Degree of Financial Leverage

For the Communication Equipment subindustry, Comarco'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.


Comarco's Degree of Financial Leverage Distribution in the Hardware Industry

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

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



Comarco Degree of Financial Leverage Calculation

Comarco's Degree of Financial Leverage for the quarter that ended in Oct. 2017 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.06 (Oct. 2017) / 0.05 (Oct. 2016) - 1 )/( -0.923 (Oct. 2017) / -1.082 (Oct. 2016) - 1 )
=-2.2/-0.147
=14.97***

* 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.


Comarco  (OTCPK:CMRO) 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.


Comarco Degree of Financial Leverage Related Terms

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


Comarco (Comarco) Business Description

Industry
Traded in Other Exchanges
N/A
Address
28202 Cabot Road, Suite 300, Laguna Niguel, CA, USA, 92677
Comarco Inc through its subsidiaries is engaged in developing numerous technologies in the field of power adapters and chargers for portable mobile devices such as laptop computers, tablets smartphones and more. The company is focused on realizing value from its ongoing intellectual property enforcement actions and other litigation. In addition, it also explores for opportunities to expand, protect, and monetize its patent portfolio, through the sale or licensing of the patent portfolio.
Executives
Neal C Bradsher 10 percent owner
Broadwood Partners Lp 10 percent owner BROADWOOD CAPITAL INC., 142 WEST 57TH STREET, 11TH FLOOR, NEW YORK NY 10019
Broadwood Capital Inc 10 percent owner 142 WEST 57TH STREET, 11TH FLOOR, NEW YORK NY 10019
Lou Silverman director
Michael H. Mulroy director 1300 N. KELLOGG DRIVE, SUITE D, ANAHEIM CA 92807
Alisha Charlton officer: VP, Chief Accounting Officer 25541 COMMERCENTRE DRIVE, LAKE FOREST CA 92630
Marxe Austin W & Greenhouse David M 10 percent owner C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Robert J Majteles director
Van Der Kaay Erik director C/O RF MICRO DEVICES, INC., 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Don M Bailey director 1300 N. KELLOGG DRIVE, SUITE D, ANAHEIM CA 92607
Stadium Capital Partners L P other: former 10% owner 199 ELM STREET, NEW CANAAN CT 06840

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