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FIAC (Focus Impact Acquisition) Degree of Financial Leverage : -2.88 (As of Jun. 2024)


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What is Focus Impact Acquisition 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). Focus Impact Acquisition's Degree of Financial Leverage for the quarter that ended in Jun. 2024 was -2.88. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Focus Impact Acquisition's Degree of Financial Leverage or its related term are showing as below:

FIAC's Degree of Financial Leverage is ranked better than
85.75% of 414 companies
in the Diversified Financial Services industry
Industry Median: 0.86 vs FIAC: -2.88

Focus Impact Acquisition Degree of Financial Leverage Historical Data

The historical data trend for Focus Impact Acquisition'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.

Focus Impact Acquisition Degree of Financial Leverage Chart

Focus Impact Acquisition Annual Data
Trend Dec21 Dec22 Dec23
Degree of Financial Leverage
- - -0.72

Focus Impact Acquisition Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -0.25 -0.41 -0.72 -1.19 -2.88

Competitive Comparison of Focus Impact Acquisition's Degree of Financial Leverage

For the Shell Companies subindustry, Focus Impact Acquisition'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.


Focus Impact Acquisition's Degree of Financial Leverage Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Focus Impact Acquisition's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Focus Impact Acquisition's Degree of Financial Leverage falls into.



Focus Impact Acquisition Degree of Financial Leverage Calculation

Focus Impact Acquisition's Degree of Financial Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.489 (Jun. 2024) / 0.15 (Jun. 2023) - 1 )/( -6.371 (Jun. 2024) / -2.568 (Jun. 2023) - 1 )
=-4.26/1.4809
=-2.88***

* 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.


Focus Impact Acquisition  (NAS:FIAC) 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.


Focus Impact Acquisition Degree of Financial Leverage Related Terms

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


Focus Impact Acquisition Business Description

Traded in Other Exchanges
N/A
Address
1345 Avenue of the Americas, 33rd Floor, New York, NY, USA, 10105
Focus Impact Acquisition Corp is a blank check company.
Executives
D'angela Simms director 40 W. 57TH STREET, 33RD FLOOR, NEW YORK NY 10019
Jerri Devard director 120 E 87TH STREET, #P6A, NEW YORK NY 10128
Westley Moore director, other: Chairman 325 WEST HURON STREET, SUITE 412, CHICAGO IL 60654
Wray T Thorn officer: Chief Investment Officer 63 WEST 17TH STREET, NEW YORK NY 10011
Dawanna Williams director 865 MERRICK AVE, SUITE 200 S, WESTBURY NY 11590
Troy L Carter director 251 LITTLE FALLS DRIVE, WILMINGTON DE 19808
Focus Impact Sponsor, Llc director, 10 percent owner 251 LITTLE FALLS DRIVE, WILMINGTON DE 19808
Carl Stanton officer: Chief Executive Officer C/O FOCUS IMPACT, 251 LITTLE FALLS DRIVE, WILMINGTON DE 19808
Ernest D Lyles officer: Chief Financial Officer C/O FOCUS IMPACT, 250 PARK AVENUE, SUITE 911, NEW YORK NY 10177
Howard L Sanders director C/O FOCUS IMPACT, 250 PARK AVENUE, SUITE 911, NEW YORK NY 10177