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ENTX (Entera Bio) Degree of Financial Leverage : 3.00 (As of Sep. 2024)


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What is Entera Bio 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). Entera Bio's Degree of Financial Leverage for the quarter that ended in Sep. 2024 was 3.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

ENTX's Degree of Financial Leverage is ranked worse than
90.91% of 1441 companies
in the Biotechnology industry
Industry Median: 0.94 vs ENTX: 3.00

Entera Bio Degree of Financial Leverage Historical Data

The historical data trend for Entera Bio'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.

Entera Bio Degree of Financial Leverage Chart

Entera Bio Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only -3.42 9.90 -3.34 -0.33 0.98

Entera Bio 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 1.11 0.98 1.29 1.64 3.00

Competitive Comparison of Entera Bio's Degree of Financial Leverage

For the Biotechnology subindustry, Entera Bio'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.


Entera Bio's Degree of Financial Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Entera Bio's Degree of Financial Leverage distribution charts can be found below:

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



Entera Bio Degree of Financial Leverage Calculation

Entera Bio'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
=( -0.26 (Sep. 2024) / -0.34 (Sep. 2023) - 1 )/( -9.211 (Sep. 2024) / -9.996 (Sep. 2023) - 1 )
=-0.2353/-0.0785
=3.00***

* 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.


Entera Bio  (NAS:ENTX) 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.


Entera Bio Degree of Financial Leverage Related Terms

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


Entera Bio Business Description

Industry
Traded in Other Exchanges
Address
Minrav Building - Fifth Floor, Kiryat Hadassah, Jerusalem, ISR, 9112002
Entera Bio Ltd is a clinical-stage biopharmaceutical company engaged in the development of orally delivered macromolecule therapeutics, including peptides and therapeutic proteins. The company focuses on underserved, chronic medical conditions where oral administration of a mini tablet peptide or peptide replacement therapy has the potential to significantly shift a treatment paradigm. Its product candidates are; EB613 for the treatment of osteoporosis and EB612 for the treatment of hypoparathyroidism are first-in-class mini tablet formulations of synthetic human PTH (1-34) (teriparatide), designed to have differing pharmacokinetic, or PK, profiles.
Executives
Haya Taitel director KIRYAT HADASSAH, MINRAV BUILDING, 5TH FLOOR, JERUSALEM L3 9112002
Miranda Jayne Toledano director C/O COMPASS THERAPEUTICS, INC., 80 GUEST STREET, SUITE 601, BOSTON MA 02135
Gerald M Lieberman director C/O ALLIANCE CAPITAL, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Sean Ellis director KIRYAT HADASSAH, MINRAV BUILDING, FIFTH FLOOR, JERUSALEM L3 9112002
Dana Yaacov-garbeli officer: Israel CFO KIRYAT HADASSAH, MINRAV BUILDING, FIFTH FLOOR, JERUSALEM L3 9112002
Phillip Schwartz director, officer: President of R&D C/O ENTERA BIO LTD., KIRYAT HADASSAH, MINRAV BUILDING, 5TH FL, JERUSALEM L3 9112002
Ramesh Ratan officer: U.S.based CFO KIRYAT HADASSAH, MINRAV BUILDING, FIFTH FLOOR, JERUSALEM L3 9112002
Ron Mayron director 22A ORANIM ST, HOD HASHARON L3 4526333
Spiros Jamas director, officer: Chief Executive Officer
Gerald M Ostrov director 41 WATERVIEW, LONG BRANCH NJ 07740
Yonatan Malca director KIRYAT HADASSAH, MINRAV BUILDING, FIFTH FLOOR, JERUSALEM L3 9112002
Roger Garceau director 550 HILLS DRIVE, BEDMINSTER NJ 07921
Hillel Galitzer officer: Chief Operating Officer KIRYAT HADASSAH, MINRAV BUILDING, FIFTH FLOOR, JERUSALEM L3 9112002
Santora Arthur C Ii officer: Chief Medical Officer KIRYAT HADASSAH, MINRAV BUILDING, FIFTH FLOOR, JERUSALEM L3 9112002