Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Global Industrial Co's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.93. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Global Industrial Co's Degree of Financial Leverage or its related term are showing as below:
FRA:GML0's Degree of Financial Leverage is ranked better than 61.74% of 149
companies
in the Industrial Distribution industry
Industry Median: 1.06
vs FRA:GML0: 0.93
Global Industrial Co (FRA:GML0) 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.
Global Industrial Co Degree of Financial Leverage Related Terms
Global Industrial Co Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Global Industrial Co'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.
Global Industrial Co Degree of Financial Leverage Chart
FRA:GML0 vs DSGR, TITN, BXC: Degree of Financial Leverage Comparison
For the Industrial Distribution subindustry, Global Industrial Co'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.
Global Industrial Co Degree of Financial Leverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Global Industrial Co's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Global Industrial Co's Degree of Financial Leverage falls into.
* 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.
What does a Degree of Financial Leverage of 0.93 mean?
Global Industrial Co (FRA:GML0) has a Degree of Financial Leverage of 0.93 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Global Industrial Co and its competitors. According to the industry distribution chart, Global Industrial Co ranks #57 out of 149 companies in the Industrial Distribution industry, placing it in the top 38.3%.
Is Global Industrial Co's Degree of Financial Leverage too high?
Global Industrial Co's current Degree of Financial Leverage is 0.93. The Industrial Distribution industry median Degree of Financial Leverage is 1.06. Global Industrial Co's value of 0.93 is 12.3% below this industry median. Based on the distribution chart, Global Industrial Co ranks #57 out of 149 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Global Industrial Co has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Global Industrial Co's Degree of Financial Leverage compare to DSGR and TITN?
According to the Industrial Distribution industry distribution chart, Global Industrial Co ranks #57 out of 149 companies for Degree of Financial Leverage. This puts Global Industrial Co in the upper half of its industry. The industry median Degree of Financial Leverage is 1.06. Global Industrial Co's value of 0.93 is 12.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for an Industrial Distribution company?
The median Degree of Financial Leverage among Industrial Distribution companies is 1.06, based on 149 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Global Industrial Co's current Degree of Financial Leverage of 0.93 is 12.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Global Industrial Co and its competitors. For the Industrial Distribution industry, the median Degree of Financial Leverage is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Global Industrial Co's current Degree of Financial Leverage is 0.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Global Industrial Co stock overvalued right now?
Global Industrial Co (FRA:GML0) has a current Degree of Financial Leverage of 0.93. The stock's GF Value™ is €27.18, compared to a current price of €26.40 — trading 2.9% below its estimated fair value. The current Degree of Financial Leverage is 0.93 and 12.3% below the Industrial Distribution industry median of 1.06. Global Industrial Co's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Global Industrial Co (FRA:GML0), the current Degree of Financial Leverage is 0.93 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Global Industrial Co (FRA:GML0) Overvalued in 2026?
Based on GuruFocus' analysis, Global Industrial Co stock appears to be undervalued.
The current stock price of €26.40 is trading 2.9% below its estimated GF Value™ of €27.18.
Key valuation signals for FRA:GML0:
Degree of Financial Leverage: 0.93
GF Value™: €27.18 vs. price of €26.40 (2.9% below fair value)
Industry Position: 12.3% below the Industrial Distribution median (#57 of 149)
No single metric tells the full story. See the FRA:GML0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Global Industrial Co is a value-added industrial distributor. The company distributes a wide range of industrial and maintenance, repair, and operations (MRO) products to customers across North America, including storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, food service and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw material.
83GF Score
Get the complete analysis for FRA:GML0
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:GML0 has been successfully added to your 
