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Fabled Silver Gold (FRA:7NQ) Degree of Financial Leverage : -4.42 (As of Sep. 2023)


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What is Fabled Silver Gold 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). Fabled Silver Gold's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was -4.42. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Fabled Silver Gold's Degree of Financial Leverage or its related term are showing as below:

FRA:7NQ's Degree of Financial Leverage is ranked better than
94.68% of 2292 companies
in the Metals & Mining industry
Industry Median: 1 vs FRA:7NQ: -4.42

Fabled Silver Gold Degree of Financial Leverage Historical Data

The historical data trend for Fabled Silver Gold'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.

Fabled Silver Gold Degree of Financial Leverage Chart

Fabled Silver Gold Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Sep18 Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only 2.09 0.01 0.97 -0.19 -4.83

Fabled Silver Gold Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 1.95 -4.83 -20.79 -1.74 -4.42

Competitive Comparison of Fabled Silver Gold's Degree of Financial Leverage

For the Other Precious Metals & Mining subindustry, Fabled Silver Gold'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.


Fabled Silver Gold's Degree of Financial Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Fabled Silver Gold's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Fabled Silver Gold's Degree of Financial Leverage falls into.



Fabled Silver Gold Degree of Financial Leverage Calculation

Fabled Silver Gold's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.104 (Sep. 2023) / -0.029 (Sep. 2022) - 1 )/( -0.883 (Sep. 2023) / -2.426 (Sep. 2022) - 1 )
=2.5862/-0.636
=-4.07***

* 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.


Fabled Silver Gold  (FRA:7NQ) 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.


Fabled Silver Gold Degree of Financial Leverage Related Terms

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


Fabled Silver Gold (FRA:7NQ) Business Description

Traded in Other Exchanges
Address
1500 West Georgia Street, Suite 480, Vancouver, BC, CAN, V6G 2Z6
Fabled Silver Gold Corp is focused on acquiring, exploring and operating properties that yield near-term metal production. The company focuses on acquiring precious metal properties in Mexico with blue-sky exploration potential. It has entered into an agreement with Golden Minerals Company to acquire the Santa Maria Property, a high-grade silver-gold property situated in the center of the Mexican epithermal silver-gold belt. The belt has been recognized as a metallogenic province, which has reportedly produced more silver than any other equivalent area in the world. The Company operates in one single reportable segment, which is the acquisition and exploration of mineral resource properties.

Fabled Silver Gold (FRA:7NQ) Headlines

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