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Environmental Solutions Worldwide (Environmental Solutions Worldwide) Degree of Financial Leverage : 0.00 (As of Dec. 2014)


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What is Environmental Solutions Worldwide 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). Environmental Solutions Worldwide's Degree of Financial Leverage for the quarter that ended in Dec. 2014 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Environmental Solutions Worldwide's Degree of Financial Leverage or its related term are showing as below:

ESWW's Degree of Financial Leverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 0.98
* Ranked among companies with meaningful Degree of Financial Leverage only.

Environmental Solutions Worldwide Degree of Financial Leverage Historical Data

The historical data trend for Environmental Solutions Worldwide'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.

Environmental Solutions Worldwide Degree of Financial Leverage Chart

Environmental Solutions Worldwide Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Degree of Financial Leverage
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Environmental Solutions Worldwide Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
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Competitive Comparison of Environmental Solutions Worldwide's Degree of Financial Leverage

For the Auto Parts subindustry, Environmental Solutions Worldwide'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.


Environmental Solutions Worldwide's Degree of Financial Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Environmental Solutions Worldwide's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Environmental Solutions Worldwide's Degree of Financial Leverage falls into.



Environmental Solutions Worldwide Degree of Financial Leverage Calculation

Environmental Solutions Worldwide's Degree of Financial Leverage for the quarter that ended in Dec. 2014 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 70.52 (Dec. 2014) / -3.09 (Dec. 2013) - 1 )/( 3.983 (Dec. 2014) / 1.433 (Dec. 2013) - 1 )
=-23.822/1.7795
=-13.39***

* 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.


Environmental Solutions Worldwide  (OTCPK:ESWW) 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.


Environmental Solutions Worldwide Degree of Financial Leverage Related Terms

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Environmental Solutions Worldwide (Environmental Solutions Worldwide) Business Description

Traded in Other Exchanges
N/A
Address
200 Progress Drive, Montgomerville, PA, USA, 18936
Environmental Solutions Worldwide Inc through its subsidiaries is involved in the designing, development, manufacturing, and sales of emissions control technologies. It also provides emissions testing and environmental certification services. The firm's products include horizondpf, longview dpf, and vista dpf. It has Air testing services and MHDD diesel emission control manufacturing and sales operating segments. The company derives the majority of its revenues from MHDD diesel control segment.
Executives
John J Suydam director C/O APOLLO MANAGEMENT LP, 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Joshua Black director C/O APOLLO MANAGEMENT LP, 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Mark Yung director, other: Remarks C/O 335 CONNIE CRESENT, CONCORD A6 L4K 5R2
John J Hannan director 9 WEST 57TH STREET, NEW YORK NY 10019
Leon D Black 10 percent owner APOLLO ADVISORS LP, 1301 AVENOE OF THE AMERICAS, NEW YORK NY 10019
Richard S Ressler other: See Remarks C/O J2 GLOBAL COMMUNICATIONS, INC., 6922 HOLLYWOOD BLVD, 5TH FLOOR, LOS ANGELES CA 90028
Peter D. Bloch director 483 BAY STREET, N105, TORONTO A6 M5G2C9
Elbert O Hand director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143

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