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Five Point Holdings LLC (Five Point Holdings LLC) Degree of Financial Leverage : 8.10 (As of Mar. 2024)


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What is Five Point Holdings LLC 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). Five Point Holdings LLC's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 8.10. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

FPH's Degree of Financial Leverage is ranked worse than
96.76% of 1759 companies
in the Real Estate industry
Industry Median: 1.02 vs FPH: 8.10

Five Point Holdings LLC Degree of Financial Leverage Historical Data

The historical data trend for Five Point Holdings LLC'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.

Five Point Holdings LLC Degree of Financial Leverage Chart

Five Point Holdings LLC 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 3.37 5.98 9.26 0.19 2.86

Five Point Holdings LLC Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.49 -3.32 -6.72 2.86 8.10

Competitive Comparison of Five Point Holdings LLC's Degree of Financial Leverage

For the Real Estate - Development subindustry, Five Point Holdings LLC'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.


Five Point Holdings LLC's Degree of Financial Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Five Point Holdings LLC's Degree of Financial Leverage distribution charts can be found below:

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



Five Point Holdings LLC Degree of Financial Leverage Calculation

Five Point Holdings LLC'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
=( 0.85 (Mar. 2024) / -0.06 (Mar. 2023) - 1 )/( 29.913 (Mar. 2024) / -34.329 (Mar. 2023) - 1 )
=-15.1667/-1.8714
=8.10***

* 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.


Five Point Holdings LLC  (NYSE:FPH) 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.


Five Point Holdings LLC Degree of Financial Leverage Related Terms

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Five Point Holdings LLC (Five Point Holdings LLC) Business Description

Traded in Other Exchanges
Address
2000 FivePoint, 4th Floor, Irvine, CA, USA, 92618
Five Point Holdings LLC is an owner and developer of mixed-use, master-planned communities in California. It is engaged in developing new communities that, in addition to homesites, include commercial, retail, educational and recreational elements, as well as civic areas, parks, and open spaces. Its four reportable segments are Valencia, San Francisco, Great Park, and Commercial. It derives most of the revenue from the Great Park segment which includes Great Park Neighborhoods being developed adjacent to and around the Orange County Great Park, a metropolitan park under construction in Orange County, California.
Executives
Luxor Capital Group, Lp 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Kim Tobler officer: See Remarks C/O FIVE POINT COMMUNITIES, INC., 2000 FIVEPOINT, 4TH FLOOR, IRVINE CA 92618
Gary H Hunt director C/O WILLIAM LYON HOMES, 4695 MACARTHUR COURT, 8TH FLOOR, NEWPORT BEACH CA 92660
Leo Kij officer: See Remarks C/O FIVE POINT COMMUNITIES, INC., 2000 FIVEPOINT, 4TH FLOOR, IRVINE CA 92618
Daniel Hedigan officer: Chief Executive Officer C/O FIVE POINT HOLDINGS, LLC, 2000 FIVEPOINT, 4TH FLOOR, IRVINE CA 92618
Luxor Capital Partners Long, Lp 10 percent owner 1114 AVENUE OF THE AMERICAS, 28TH FLOOR, NEW YORK NY 10036
Luxor Capital Partners Long Offshore, Ltd. 10 percent owner C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104
Jonathan F Foster director 777 THIRD AVE, 30TH FL, NEW YORK NY 10017
Thebes Partners, Lp 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Lcg Holdings Llc 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Luxor Capital Partners Offshore Ltd 10 percent owner C/O MAPLES CORPORATE SERVICES LTD., PO BOX 309, UGLAND HOUSE, GEORGE TOWN E9 KY1-1104
Luxor Wavefront, Lp 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Luxor Capital Partners, Lp 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Anchorage Capital Group, L.l.c. 10 percent owner 610 BROADWAY, 6TH FLOOR, NEW YORK NY 10012
Lynn Jochim officer: Executive Vice President C/O FIVE POINT HOLDINGS, LLC, 15131 ALTON PARKWAY, 4TH FLOOR, IRVINE CA 92618