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ENR (Energizer Holdings) Degree of Financial Leverage : 1.87 (As of Sep. 2024)


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What is Energizer 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). Energizer Holdings's Degree of Financial Leverage for the quarter that ended in Sep. 2024 was 1.87. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

ENR's Degree of Financial Leverage is ranked worse than
85.06% of 2938 companies
in the Industrial Products industry
Industry Median: 1.005 vs ENR: 1.87

Energizer Holdings Degree of Financial Leverage Historical Data

The historical data trend for Energizer 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.

Energizer Holdings Degree of Financial Leverage Chart

Energizer Holdings Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.74 -11.47 1.77 0.47 1.87

Energizer Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 0.47 0.48 0.44 0.48 1.87

Competitive Comparison of Energizer Holdings's Degree of Financial Leverage

For the Electrical Equipment & Parts subindustry, Energizer 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.


Energizer Holdings's Degree of Financial Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Energizer Holdings's Degree of Financial Leverage distribution charts can be found below:

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



Energizer Holdings Degree of Financial Leverage Calculation

Energizer Holdings's Degree of Financial Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.52 (Sep. 2024) / 1.94 (Sep. 2023) - 1 )/( 209.5 (Sep. 2024) / 344.4 (Sep. 2023) - 1 )
=-0.732/-0.3917
=1.87***

* 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.


Energizer Holdings  (NYSE:ENR) 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.


Energizer Holdings Degree of Financial Leverage Related Terms

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


Energizer Holdings Business Description

Traded in Other Exchanges
Address
8235 Forsyth Boulevard, Suite 100, Saint Louis, MO, USA, 63105
Energizer Holdings Inc makes and distributes household batteries, specialty batteries, and lighting products. Energizer offers batteries using lithium, alkaline, carbon-zinc, nickel-metal hydride, zinc-air, and silver oxide technologies. These products are sold under the Energizer, Rayovac, Varta and Eveready brands at performance and premium price segments. It also offers auto care products in the appearance, fragrance, performance, and air conditioning recharge product categories. The company operates in two geographical segments: Americas and International, of which the majority of its revenue is derived from the America. It has two product segments: Batteries & Lights and Auto Care. It earns maximum revenue from Batteries & Lights segment.
Executives
Robin Vauth officer: EVP, International 533 MARYVILLE UNIVERSITY DRIVE, ST. LOUIS MO 63141
Sara B. Hampton officer: VP, Cont. & Chief Acct. Off. 533 MARYVILLE UNIVERSITY DR., SAINT LOUIS MO 63141
Patrick J Moore director C/O SMURFIT STONE CONTAINER CORP, 150 NORTH MICHIGAN AVE, CHICAGO IL 60661
Mark Stephen Lavigne officer: EXECUTIVE VP, COO 533 MARYVILLE UNIVERSITY DRIVE, ST. LOUIS MO 63141
Bill G Armstrong director P O BOX 618, SAINT LOUIS MO 63101
Michael A Lampman officer: EVP, NA & Global Bus. Units 533 MARYVILLE UNIVERSITY DRIVE, SAINT LOUIS MO 63141
Timothy W Gorman officer: VP, Controller & PAO 1475 E. WOODFIELD ROAD, SCHAUMBURG IL 60173
Donal L Mulligan director ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Robert V Vitale director C/O POST HOLDINGS, INC., 2503 SOUTH HANLEY ROAD, ST. LOUIS MO 63144
John J Drabik officer: SVP, Corporate Controller 533 MARYVILLE UNIVERSITY DRIVE, SAINT LOUIS MO 63141
Carlos Abrams-rivera director THE KRAFT HEINZ COMPANY, 200 E. RANDOLPH STREET SUITE 7600, CHICAGO IL 60601
Rebecca Frankiewicz director 100 MANPOWER PLACE, MILWAUKEE WI 53212
Hannah K Kim officer: CLO & Corp. Secretary 533 MARYVILLE UNIVERSITY DRIVE, SAINT LOUIS MO 63141
John Eddy Klein director ONE PINE VALLEY DRIVE, ST. LOUIS MO 63124
Susan K Drath officer: VP, Chief HR Officer 533 MARYVILLE UNIVERSITY DRIVE, SAINT LOUIS MO 63141