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Churchill Capital VII (Churchill Capital VII) Degree of Financial Leverage : -0.67 (As of Mar. 2024)


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What is Churchill Capital VII 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). Churchill Capital VII's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was -0.67. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CVIIU's Degree of Financial Leverage is ranked better than
79.06% of 468 companies
in the Diversified Financial Services industry
Industry Median: 0.7 vs CVIIU: -0.67

Churchill Capital VII Degree of Financial Leverage Historical Data

The historical data trend for Churchill Capital VII'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.

Churchill Capital VII Degree of Financial Leverage Chart

Churchill Capital VII Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- - 8.14 -0.41

Churchill Capital VII Quarterly Data
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 -1.06 -0.75 -0.55 -0.41 -0.67

Competitive Comparison of Churchill Capital VII's Degree of Financial Leverage

For the Shell Companies subindustry, Churchill Capital VII'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.


Churchill Capital VII's Degree of Financial Leverage Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Churchill Capital VII's Degree of Financial Leverage distribution charts can be found below:

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



Churchill Capital VII Degree of Financial Leverage Calculation

Churchill Capital VII'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
=( 0 (Mar. 2024) / 0 (Mar. 2023) - 1 )/( -7.11 (Mar. 2024) / -2.72 (Mar. 2023) - 1 )
=/1.614
=0.00***

* 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.


Churchill Capital VII  (NAS:CVIIU) 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.


Churchill Capital VII Degree of Financial Leverage Related Terms

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


Churchill Capital VII (Churchill Capital VII) Business Description

Traded in Other Exchanges
Address
640 Fifth Avenue, 12th Floor, New York, NY, USA, 10019
Churchill Capital Corp VII is a blank check company.
Executives
Atlas Merchant Capital Llc 10 percent owner 477 MADISON AVENUE, 22ND FLOOR, NEW YORK NY 10022
Magnetar Financial Llc 10 percent owner 1603 ORRINGTON AVE., 13TH FLOOR, EVANSTON IL 60201
Magnetar Capital Partners Lp 10 percent owner 1603 ORRINGTON AVE., 13TH FLOOR, EVANSTON IL 60201
Supernova Management Llc 10 percent owner 1603 ORRINGTON AVENUE, 13TH FLOOR, EVANSTON IL 60201
David J. Snyderman 10 percent owner C/O MAGNETAR FINANCIAL LLC, 1603 ORRINGTON AVENUE, 13TH FLOOR, EVANSTON IL 60201
Alan Schrager director C/O OHA INVESTMENT CORPORATION, 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036
Stephen Anthony Murphy director 640 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10019
Andrew Frankle director 640 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10019
Malcolm Stephen Mcdermid director C/O CTC MY CFO, P.O. BOX 10195, DEPT. 1173, PALO ALTO CA 94303
Churchill Sponsor Vii Llc 10 percent owner 640 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10019
Lee Jay Taragin officer: Chief Financial Officer 640 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10019
Bonnie Jonas director 640 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10019
Michael Stuart Klein director, 10 percent owner, officer: See Remarks C/O DAVIS POLK & WARDWELL, 450 LEXINGTON AVENUE, NEW YORK NY 10017
M. Klein Associates, Inc. 10 percent owner 640 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10019
Glenn R August director C/O OHA - 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036