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Capri Holdings (Capri Holdings) Degree of Financial Leverage : 2.54 (As of Mar. 2024)


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What is Capri Holdings 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). Capri Holdings's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 2.54. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CPRI's Degree of Financial Leverage is ranked worse than
88.62% of 1081 companies
in the Retail - Cyclical industry
Industry Median: 1.04 vs CPRI: 2.54

Capri Holdings Degree of Financial Leverage Historical Data

The historical data trend for Capri Holdings'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.

Capri Holdings Degree of Financial Leverage Chart

Capri Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.22 2.11 -7.97 0.82 2.54

Capri Holdings 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 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 0.82 1.14 1.12 1.21 2.54

Competitive Comparison of Capri Holdings's Degree of Financial Leverage

For the Luxury Goods subindustry, Capri Holdings'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.


Capri Holdings's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Capri Holdings's Degree of Financial Leverage distribution charts can be found below:

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



Capri Holdings Degree of Financial Leverage Calculation

Capri Holdings'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
=( -1.96 (Mar. 2024) / 4.6 (Mar. 2023) - 1 )/( 367 (Mar. 2024) / 837 (Mar. 2023) - 1 )
=-1.4261/-0.5615
=2.54***

* 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.


Capri Holdings  (NYSE:CPRI) 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.


Capri Holdings Degree of Financial Leverage Related Terms

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


Capri Holdings (Capri Holdings) Business Description

Traded in Other Exchanges
Address
90 Whitfield Street, 2nd Floor, London, GBR, W1T 4EZ
Michael Kors, Versace, and Jimmy Choo are the brands of Capri Holdings, a marketer, distributor, and retailer of upscale accessories and apparel. Michael Kors, Capri's largest brand, offers handbags, footwear, and apparel through more than 800 company-owned stores, wholesale, and e-commerce. Versace (acquired in 2018) is known for its ready-to-wear luxury fashion, while Jimmy Choo (acquired in 2017) is best known for women's luxury footwear. John Idol has served as CEO since 2003.
Executives
Cedric Wilmotte officer: CEO - Michael Kors C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ
Mahesh Madhavan director C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ
Judy Gibbons director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
John D Idol director, officer: Chairman & CEO 650 MADISON AVE, NEW YORK NY 10022
Daniel Purefoy officer: SVP, Global Ops 33 KINGSWAY, LONDON X0 WC2B 6UF
Thomas Jr. Edwards officer: EVP, CFO, COO & Treasurer 6820 LBJ FREEWAY, DALLAS TX 75240
Stephen F Reitman director 11 WEST 42ND STREET, 21ST FLOOR, NEW YORK NY 10036
Krista A Mcdonough officer: SVP, General Counsel 33 KINGSWAY, LONDON X0 WC2B 6UF
Joshua Schulman officer: CEO - Michael Kors 603 WEST 50TH STREET, NEW YORK X1 10019
Marilyn C Crouther director 1902 RESTON METRO PLAZA, RESTON VA 20190
Jenna Hendricks officer: SVP, Chief People Officer 33 KINGSWAY, LONDON X0 WC2B 6UF
Jean Tomlin director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Freestone Robin Anthony David director 33 KINGSWAY, LONDON X0 WC2B 6UF
Ann Mclaughlin Korologos director PO BOX 3599, BATTLECREEK MI 49016-3599
Cathy Marie Robinson officer: SVP, Corp Str & Ch Ops Off C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036

Capri Holdings (Capri Holdings) Headlines

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