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Investment Technology Group (Investment Technology Group) Degree of Financial Leverage : 0.00 (As of Sep. 2018)


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What is Investment Technology Group 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). Investment Technology Group's Degree of Financial Leverage for the quarter that ended in Sep. 2018 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

ITG's Degree of Financial Leverage is not ranked *
in the Capital Markets industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Financial Leverage only.

Investment Technology Group Degree of Financial Leverage Historical Data

The historical data trend for Investment Technology Group'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.

Investment Technology Group Degree of Financial Leverage Chart

Investment Technology Group Annual Data
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Investment Technology Group Quarterly Data
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Competitive Comparison of Investment Technology Group's Degree of Financial Leverage

For the Capital Markets subindustry, Investment Technology Group'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.


Investment Technology Group's Degree of Financial Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Investment Technology Group's Degree of Financial Leverage distribution charts can be found below:

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



Investment Technology Group Degree of Financial Leverage Calculation

Investment Technology Group's Degree of Financial Leverage for the quarter that ended in Sep. 2018 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.02 (Sep. 2018) / -0.95 (Sep. 2017) - 1 )/( 9.943 (Sep. 2018) / 6.875 (Sep. 2017) - 1 )
=-0.9789/0.4463
=-2.19***

* 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.


Investment Technology Group  (NYSE:ITG) 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.


Investment Technology Group Degree of Financial Leverage Related Terms

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


Investment Technology Group (Investment Technology Group) Business Description

Traded in Other Exchanges
N/A
Address
165 Broadway, One Liberty Plaza, New York, NY, USA, 10006
Investment Technology Group Inc is a United States-based brokerage and financial technology company. The company provides a wide range of products and services, including electronic brokerage, research, sales and trading, and platforms and analytics. The company generates over half of its revenue from electronic brokerage, research, and sales and trading. The company has a global presence, with a network of offices in North America, Europe, and Asia-Pacific. Its business is categorized into four reporting segments: U.S. operations, Canadian operations, European operations, and Asia-Pacific operations. The U.S. is its largest market.
Executives
Lee Shavel director ONE LIBERTY PLAZA, NEW YORK NY 10006
Brian G. Cartwright director 3760 KILROY AIRPORT WAY SUITE 300, LONG BEACH CA 90806
R Jarrett Lilien director 250 WEST 34TH STREET, 3RD FLOOR, C/O WISDOMTREE, INC., NEW YORK NY 10119
Kevin J Lynch director 201 POST STREET, SUITE 1000, SAN FRANCISCO CA 94108
T Kelley Millet director ITG INC., ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006
Christopher V Dodds director ITG INC., ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006
D. E. Shaw & Co, L.p. 10 percent owner, other: See footnotes 1 and 2 1166 AVENUE OF THE AMERICAS, NINTH FLOOR, NEW YORK NY 10036
David E Shaw 10 percent owner, other: See footnotes 1 and 2 120 WEST FORTY-FIFTH STREET, 39TH FLOOR, NEW YORK NY 10036
D. E. Shaw & Co, L.l.c. 10 percent owner, other: See footnotes 1 and 2 1166 AVENUE OF THE AMERICAS, NINTH FLOOR, NEW YORK NY 10036
D. E. Shaw Laminar Portfolios, L.l.c. 10 percent owner, other: See footnotes 1 and 2. 120 WEST FORTY-FIFTH STREET, 39TH FLOOR, NEW YORK NY 10036
William I Jacobs director C/O MASTERCARD INTERNATIONAL INC, 2000 PURCHASE ST, PUCHASE NY 10577-2509
Killian Raymond L Jr director C/O INVESTMENT TECHNOLOGY GROUP INC, 900 THIRD AVE, NEW YORK NY 10022
Mark A Wolfson director C/O ARBOR INVESTORS, 2460 SAND HILL RD STE 300, MENLO PARK CA 94025