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Integral Ad Science Holding (Integral Ad Science Holding) Degree of Financial Leverage : 1.26 (As of Mar. 2024)


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What is Integral Ad Science Holding 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). Integral Ad Science Holding's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.26. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Integral Ad Science Holding's Degree of Financial Leverage or its related term are showing as below:

IAS's Degree of Financial Leverage is ranked worse than
69.77% of 1009 companies
in the Media - Diversified industry
Industry Median: 0.99 vs IAS: 1.26

Integral Ad Science Holding Degree of Financial Leverage Historical Data

The historical data trend for Integral Ad Science Holding'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.

Integral Ad Science Holding Degree of Financial Leverage Chart

Integral Ad Science Holding Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- 0.63 0.36 0.78 2.54

Integral Ad Science Holding Quarterly Data
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 0.74 -34.89 29.09 2.54 1.26

Competitive Comparison of Integral Ad Science Holding's Degree of Financial Leverage

For the Advertising Agencies subindustry, Integral Ad Science Holding'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.


Integral Ad Science Holding's Degree of Financial Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Integral Ad Science Holding's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Integral Ad Science Holding's Degree of Financial Leverage falls into.



Integral Ad Science Holding Degree of Financial Leverage Calculation

Integral Ad Science Holding'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
=( 0.01 (Mar. 2024) / 0.105 (Mar. 2023) - 1 )/( 8.04 (Mar. 2024) / 28.317 (Mar. 2023) - 1 )
=-0.9048/-0.7161
=1.26***

* 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.


Integral Ad Science Holding  (NAS:IAS) 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.


Integral Ad Science Holding Degree of Financial Leverage Related Terms

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Integral Ad Science Holding (Integral Ad Science Holding) Business Description

Traded in Other Exchanges
N/A
Address
95 Morton Street, 8th Floor, New York, NY, USA, 10014
Integral Ad Science Holding Corp is a digital advertising verification company. Its cloud-based technology platform delivers independent measurement and verification of digital advertising across all devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Geographically, the company derives a majority of its revenue from the Americas region.
Executives
Vista Equity Partners Fund Vi, L.p. 10 percent owner 4 EMBARCADERO CENTER, 20TH FLOOR, SAN FRANCISCO CA 94111
Tania Secor officer: Chief Financial Officer 99 WALL STREET, #1950, NEW YORK NY 10005
Lisa Utzschneider director, officer: Chief Executive Officer C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Tom Sharma officer: Chief Product Officer 95 MORTON STREET, FLOOR 8, NEW YORK NY 10014
Anil Sukumaran officer: Chief Accounting Officer 99 WALL STREET, #1950, NEW YORK NY 10005
Oleg Bershadsky officer: Chief Operating Officer 95 MORTON STREET, FLOOR 8, NEW YORK NY 10014
Michael Eugene Fosnaugh director C/O PING IDENTITY CORPORATION, 1001 17TH STREET, SUITE 100, DENVER CO 80202
Lucia Anthony C. Jr. officer: Chief Technology Officer 95 MORTON STREET, FLOOR 8, NEW YORK NY 10014
Otto Berkes director 95 MORTON STREET, FLOOR 8, NEW YORK NY 10014
Joseph Pergola officer: Chief Financial Officer 95 MORTON STREET, FLOOR 8, NEW YORK NY 10014
Brooke Nakatsukasa director 95 MORTON STREET, FLOOR 8, NEW YORK NY 10014
Vista Equity Partners Management, Llc 10 percent owner FOUR EMBARCADERO CENTER, 20TH FLOOR, SAN FRANCISCO CA 94111
Christina Silvia Lema director 101 MERRITT 7, NORWALK CT 06851
Martin A Taylor director 100 WASHINGTON AVENUE S., SUITE 100, MINNEAPOLIS MN 55401
Jill Putman director 100 WASHINGTON AVENUE S., SUITE 100, MINNEAPOLIS MN 55401