Beam (FRA:BJM) Degree of Financial Leverage : 0.00 (As of Dec. 2013)

View and export this data going back to . Start your Free Trial

What is Beam 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). Beam's Degree of Financial Leverage for the quarter that ended in Dec. 2013 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

FRA:BJM's Degree of Financial Leverage is not ranked ^*
in the Beverages - Alcoholic industry.
Industry Median: 1.01
* Ranked among companies with meaningful Degree of Financial Leverage only.

Beam Degree of Financial Leverage Historical Data

The historical data trend for Beam'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.

Beam Degree of Financial Leverage Chart

Beam Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Degree of Financial Leverage

Get a 7-Day Free Trial

Beam Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Degree of Financial Leverage	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Beam's Degree of Financial Leverage

For the Beverages - Wineries & Distilleries subindustry, Beam'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.

Beam's Degree of Financial Leverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Beam's Degree of Financial Leverage distribution charts can be found below:

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

Beam Degree of Financial Leverage Calculation

Beam's Degree of Financial Leverage for the quarter that ended in Dec. 2013 is calculated as:

Degree of Financial Leverage	=	% Change in Earnings per Share (Diluted)^**	/	% Change in EBIT
	=	( 1.621 (Dec. 2013) / 1.829 (Dec. 2012) - 1 )	/	( 415.37 (Dec. 2013) / 463.753 (Dec. 2012) - 1 )
	=	-0.1137	/	-0.1043
	=	1.09^***

** 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.

Beam (FRA:BJM) 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.

Beam Degree of Financial Leverage Related Terms

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

Beam (FRA:BJM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Beam Inc (FRA:BJM) » Definitions » Degree of Financial Leverage

Traded in Other Exchanges

N/A

Address

Website

http://www.beamglobal.com

Beam Inc., is incorporated under the laws of Delaware in 1985. On May 30, 1997, the Company's name was changed from American Brands, Inc. to Fortune Brands, Inc. Following the spin-off on October 3, 2011, the Company became a standalone Spirits Company under the name Beam Inc. It is a premium spirits company that makes and sells branded distilled spirits products in major markets. The Company's three reportable segments are the geographic regions of North America, EMEA and APSA. Each segment is engaged in the manufacture and sale of distilled spirits products. Its principal products include bourbon whiskey, Scotch whisky, Canadian whisky, tequila, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. The Company's portfolio consists of brands it identifies as Power Brands, Rising Stars, Local Jewels and Value Creators. The Power Brands are the core brand equities, with its reach in premium categories and large annual sales volume. Rising Stars are smaller premium brands in priority markets. Brands identified as Local Jewels act as Power Brands in local markets. Value Creators include a variety of brands competing across multiple categories. The principal markets for its spirits products are the United States, Australia, Germany, Spain, the United Kingdom, and Canada, and continues to invest in emerging markets such as India, Brazil, Mexico, Russia, Central Europe, Asia, and other geographies. The Company operates its business on the basis of geographical regions, consisting of North America, Europe/Middle East/Africa, and Asia-Pacific/South America. Its peak season for business is the fourth calendar quarter due to holiday buying. Raw materials for the production, storage and aging of distilled products are corn and other grains for whiskies and other spirits, agave for tequila, molasses for rum, grapes for cognac and fortified wines, new or used oak barrels, and plastic and glass for bottles. These materials are generally readily available from a number of sources, except that new oak barrels are available from only a few sources. The Company uses different business models to market and distribute its products in different regions of the world. In the U.S., it sells products either to wholesale distributors for resale to retail outlets or, in those states that control alcohol sales, to state governments who then sell them to retail customers and consumers. It competes on the basis of product quality, brand image, innovation, price, and service in response to consumer preferences. The production, storage, transportation, distribution and sale of its products are subject to regulation by federal, state, local, and foreign authorities.

Beam (FRA:BJM) Headlines

No Headlines