Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Converge Information And Communications Technology Solutions's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 1.36. The higher Degree of Financial Leverage, the more volatile earnings will be.
CVGYY's Degree of Financial Leverage is ranked worse than 66.3% of 359
companies
in the Telecommunication Services industry
Industry Median: 1.05
vs CVGYY: 1.36
Converge Information And Communications Technology Solutions (OTCPK:CVGYY) 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.
Converge Information And Communications Technology Solutions Degree of Financial Leverage Related Terms
Converge Information And Communications Technology Solutions Degree of Financial Leverage Historical Data
* 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.
Converge Information And Communications Technology Solutions Degree of Financial Leverage Chart
Converge Information And Communications Technology Solutions Annual Data
* 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.
Converge Information And Communications Technology Solutions Degree of Financial Leverage vs Telecommunication Services Industry
* 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.
What does a Degree of Financial Leverage of 1.36 mean?
Converge Information And Communications Technology Solutions (CVGYY) has a Degree of Financial Leverage of 1.36 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Converge Information And Communications Technology Solutions and its competitors. According to the industry distribution chart, Converge Information And Communications Technology Solutions ranks #238 out of 359 companies in the Telecommunication Services industry, placing it in the top 66.3%.
Is Converge Information And Communications Technology Solutions' Degree of Financial Leverage too high?
Converge Information And Communications Technology Solutions' current Degree of Financial Leverage is 1.36. The Telecommunication Services industry median Degree of Financial Leverage is 1.05. Converge Information And Communications Technology Solutions' value of 1.36 is 29.5% above this industry median. Based on the distribution chart, Converge Information And Communications Technology Solutions ranks #238 out of 359 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Converge Information And Communications Technology Solutions has a GF Score™ of 95/100, reflecting its overall financial health beyond just this single metric.
How does Converge Information And Communications Technology Solutions' Degree of Financial Leverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Converge Information And Communications Technology Solutions ranks #238 out of 359 companies for Degree of Financial Leverage. This places Converge Information And Communications Technology Solutions in the lower half of its industry. The industry median Degree of Financial Leverage is 1.05. Converge Information And Communications Technology Solutions' value of 1.36 is 29.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Telecommunication Services company?
The median Degree of Financial Leverage among Telecommunication Services companies is 1.05, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Converge Information And Communications Technology Solutions's current Degree of Financial Leverage of 1.36 is 29.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Converge Information And Communications Technology Solutions and its competitors. For the Telecommunication Services industry, the median Degree of Financial Leverage is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Converge Information And Communications Technology Solutions's current Degree of Financial Leverage is 1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Converge Information And Communications Technology Solutions stock overvalued right now?
Converge Information And Communications Technology Solutions (CVGYY) has a current Degree of Financial Leverage of 1.36. The current Degree of Financial Leverage is 1.36 and 29.5% above the Telecommunication Services industry median of 1.05. Converge Information And Communications Technology Solutions' overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Converge Information And Communications Technology Solutions (CVGYY), the current Degree of Financial Leverage is 1.36 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Converge Information And Communications Technology Solutions Business Description
Converge Information And Communications Technology Solutions Inc is a pure-play high-speed fixed broadband provider in the Philippines, with industry optical fiber-based connectivity services. Its singular focus on high-speed fixed broadband services is deeply ingrained in the organization and permeates all aspects of Converge's operations, including network rollout, product and service innovation, sales, and customer service. The company operates in two businesses, namely Residential Business and Enterprise Business, and it generates maximum revenue from Residential Business. The company derives all its revenue from Philippines.
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