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HSTM (HealthStream) Degree of Financial Leverage : 1.40 (As of Mar. 2025)


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What is HealthStream 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). HealthStream's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 1.40. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

HSTM's Degree of Financial Leverage is ranked worse than
72.21% of 637 companies
in the Healthcare Providers & Services industry
Industry Median: 0.97 vs HSTM: 1.40

HealthStream Degree of Financial Leverage Historical Data

The historical data trend for HealthStream'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.

HealthStream Degree of Financial Leverage Chart

HealthStream Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.86 1.16 1.93 0.98 0.97

HealthStream Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.73 0.73 1.26 0.97 1.40

Competitive Comparison of HealthStream's Degree of Financial Leverage

For the Health Information Services subindustry, HealthStream'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.


HealthStream's Degree of Financial Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, HealthStream's Degree of Financial Leverage distribution charts can be found below:

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


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HealthStream Degree of Financial Leverage Calculation

HealthStream's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.63 (Mar. 2025) / 0.58 (Mar. 2024) - 1 )/( 19.976 (Mar. 2025) / 18.815 (Mar. 2024) - 1 )
=0.0862/0.0617
=1.40***

* 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.


HealthStream  (NAS:HSTM) 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.


HealthStream Degree of Financial Leverage Related Terms

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


HealthStream Business Description

Traded in Other Exchanges
Address
500 11th Avenue North, Suite 1000, Nashville, TN, USA, 37203
HealthStream Inc provides workforce and provider solutions for healthcare organizations. Its reportable segments include Workforce Solutions and Provider Solutions. Workforce development solutions consist of SaaS, subscription-based products that are used by healthcare organizations. Its Provider Solutions products offer healthcare organizations software applications for administering and tracking provider credentialing, privileging, call center and enrollment activities. The company generates a majority of its revenue from Subscription Services.
Executives
Scott Fenstermacher officer: Senior Vice President 500 11TH AVENUE NORTH, SUITE 1000, NASHVILLE TN 37203
Tate Deborah Taylor director 209 10TH AVENUE SOUTH, SUITE 450, NASHVILLE TN 37203
Kevin P O'hara officer: Senior Vice President 209 10TH AVENUE SOUTH, SUITE 450, NASHVILLE TN 37203
Michael Sousa officer: Senior Vice President 209 10TH AVENUE SOUTH, SUITE 450, NASHVILLE TN 37203
Trisha L Coady officer: SVP & GM, Clinical Solutions 209 10TH AVENUE SOUTH, SUITE 450, NASHVILLE TN 37203
Amir Alex Jahangir director 500 11TH AVENUE NORTH, SUITE 1000, NASHVILLE TN 37203
J Edward Pearson officer: Senior Vice President
Jeffrey L Mclaren director 209 10TH AVE SOUTH STE 450, NASHVILLE TN 37203
Michael Scott Mcquigg officer: Senior VP, hStream Solutions 209 10TH AVENUE SOUTH, SUITE 450, NASHVILLE TN 37203
Terry Allison Rappuhn director P O BOX 58062, NASHVILLE TN 37205
Frank Gordon director 3102 WEST END AVE., SUITE 650, NASHVILLE TN 37203
Frist Robert A Jr 10 percent owner, officer: CEO 211 CRAIGHEAD AVE, NASHVILLE TN 37205
C Martin Harris director
Linda Rebrovick director 511 UNION STREET, SUITE 1900, NASHVILLE TN 37219
Scott Alexander Roberts officer: Interim CFO 209 10TH AVENUE SOUTH, SUITE 450, NASHVILLE TN 37203