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InnerWorkings (InnerWorkings) Degree of Financial Leverage : 0.00 (As of Jun. 2020)


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What is InnerWorkings 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). InnerWorkings's Degree of Financial Leverage for the quarter that ended in Jun. 2020 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

INWK's Degree of Financial Leverage is not ranked *
in the Media - Diversified industry.
Industry Median: 0.99
* Ranked among companies with meaningful Degree of Financial Leverage only.

InnerWorkings Degree of Financial Leverage Historical Data

The historical data trend for InnerWorkings'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.

InnerWorkings Degree of Financial Leverage Chart

InnerWorkings Annual Data
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InnerWorkings Quarterly Data
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Competitive Comparison of InnerWorkings's Degree of Financial Leverage

For the Advertising Agencies subindustry, InnerWorkings'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.


InnerWorkings's Degree of Financial Leverage Distribution in the Media - Diversified Industry

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

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



InnerWorkings Degree of Financial Leverage Calculation

InnerWorkings's Degree of Financial Leverage for the quarter that ended in Jun. 2020 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.46 (Jun. 2020) / -1.49 (Jun. 2019) - 1 )/( 3.362 (Jun. 2020) / -68.126 (Jun. 2019) - 1 )
=-0.6913/-1.0493
=0.66***

* 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.


InnerWorkings  (NAS:INWK) 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.


InnerWorkings Degree of Financial Leverage Related Terms

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


InnerWorkings (InnerWorkings) Business Description

Traded in Other Exchanges
N/A
Address
203 North LaSalle Street, Suite 1800, Chicago, IL, USA, 60601
InnerWorkings Inc is a marketing supply-chain company that provides marketing solutions, such as advertising materials, branded merchandise, product packaging, and retail displays. The company has three geographical reportable segments namely North America, EMEA, and LATAM. It generates maximum revenue from North America segment. The company operates a software platform called VALO that enables customers to a source, produce, monitor, and analyze their marketing plan with the company.
Executives
Richard S Stoddart director, officer: President and CEO C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Adan Pope officer: Chief Technology Officer 203 NORTH LASALLE CHICAGO IL 60601
Renae Chorzempa officer: Chief Human Resources Officer C/O INNERWORKINGS, INC. 600 WEST CHICAGO AVENUE CHICAGO IL 60654
Oren B. Azar officer: EVP and General Counsel 600 WEST CHICAGO AVE #850 CHICAGO IL 60654
Marc Zenner director 1000 LOUISIANA STREET, SUITE 3850, HOUSTON TX 77002
Ronald Provenzano officer: Head of Operations C/O INNERWORKINGS, INC. 600 W. CHICAGO AVE. #850 CHICAGO IL 60654
Lindsay Y Corby director 180 NORTH LASALLE STREET, SUITE 300, CHICAGO IL 60601
Charles K Bobrinskoy director C/O INNERWORKINGS, INC., 600 WEST CHICAGO AVENUE, SUITE 850, CHICAGO IL 60654
Donald W Pearson officer: Executive VP and CFO 425 N. MARTINGALE ROAD SUITE 2050 SCHAUMBURG IL 60173-2213
John Bosshart officer: Chief Accounting Officer 500 W. MADISON STREET, #1000, CHICAGO IL 60661
David Fisher director 39 SOUTH LASALLE STREET, SUITE 220, CHICAGO IL 60605
Julie Howard director MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Adam J Gutstein director 875 N. MICHIGAN AVE. STE 3000 CHICAGO IL 60611
Jack M Greenberg director 333 WEST WACKER DR, CHICAGO IL 60606
Kirt P Karros director 12400 HIGH BLUFF DR. SUITE 600, SAN DIEGO CA 92130

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