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Ventura Cannabis and Wellness (Ventura Cannabis and Wellness) Degree of Financial Leverage : 0.00 (As of May. 2020)


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What is Ventura Cannabis and Wellness 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). Ventura Cannabis and Wellness's Degree of Financial Leverage for the quarter that ended in May. 2020 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Ventura Cannabis and Wellness's Degree of Financial Leverage or its related term are showing as below:

CVHIF's Degree of Financial Leverage is not ranked *
in the Drug Manufacturers industry.
Industry Median: 0.975
* Ranked among companies with meaningful Degree of Financial Leverage only.

Ventura Cannabis and Wellness Degree of Financial Leverage Historical Data

The historical data trend for Ventura Cannabis and Wellness'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.

Ventura Cannabis and Wellness Degree of Financial Leverage Chart

Ventura Cannabis and Wellness Annual Data
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Ventura Cannabis and Wellness Quarterly Data
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Competitive Comparison of Ventura Cannabis and Wellness's Degree of Financial Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Ventura Cannabis and Wellness'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.


Ventura Cannabis and Wellness's Degree of Financial Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Ventura Cannabis and Wellness's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Ventura Cannabis and Wellness's Degree of Financial Leverage falls into.



Ventura Cannabis and Wellness Degree of Financial Leverage Calculation

Ventura Cannabis and Wellness's Degree of Financial Leverage for the quarter that ended in May. 2020 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.044 (May. 2020) / -0.084 (May. 2019) - 1 )/( -1.375 (May. 2020) / -2.766 (May. 2019) - 1 )
=-0.4762/-0.5029
=0.95***

* 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.


Ventura Cannabis and Wellness  (OTCPK:CVHIF) 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.


Ventura Cannabis and Wellness Degree of Financial Leverage Related Terms

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Ventura Cannabis and Wellness (Ventura Cannabis and Wellness) Business Description

Traded in Other Exchanges
N/A
Address
800 W. 6th St, Suite 1415, Los Angeles, CA, USA, 90017
Ventura Cannabis and Wellness Corp is a vertically integrated, California-based products cannabis company. The company is currently building out its distribution channel through revenue-sharing agreements with owner-operator of cannabis dispensaries to ensure it's products get premium shelf space. The Company plans to target four segments in the U.S. cannabis and CBD market with products suited to their needs: senior citizens, upwardly mobile middle-aged female professionals, upwardly mobile middle-aged male professionals and individuals suffering from addiction. These segments desire discrete and well-designed products as well as the accurate dosage of THC.

Ventura Cannabis and Wellness (Ventura Cannabis and Wellness) Headlines

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