GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Jefferies Financial Group Inc (NYSE:JEF) » Definitions » Degree of Financial Leverage

JEF (Jefferies Financial Group) Degree of Financial Leverage : 4.63 (As of Feb. 2025)


View and export this data going back to 1968. Start your Free Trial

What is Jefferies Financial 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). Jefferies Financial Group's Degree of Financial Leverage for the quarter that ended in Feb. 2025 was 4.63. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

JEF's Degree of Financial Leverage is ranked worse than
94.97% of 656 companies
in the Capital Markets industry
Industry Median: 0.98 vs JEF: 4.63

Jefferies Financial Group Degree of Financial Leverage Historical Data

The historical data trend for Jefferies Financial 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.

Jefferies Financial Group Degree of Financial Leverage Chart

Jefferies Financial Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.19 2.16 1.67 -1.63 3.74

Jefferies Financial Group Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 -0.91 -0.12 1.47 3.74 4.63

Competitive Comparison of Jefferies Financial Group's Degree of Financial Leverage

For the Capital Markets subindustry, Jefferies Financial 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.


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

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

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


;
;

Jefferies Financial Group Degree of Financial Leverage Calculation

Jefferies Financial Group's Degree of Financial Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 2.86 (Feb. 2025) / 1.22 (Feb. 2024) - 1 )/( 4482.741 (Feb. 2025) / 3474.142 (Feb. 2024) - 1 )
=1.3443/0.2903
=4.63***

* 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.


Jefferies Financial Group  (NYSE:JEF) 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.


Jefferies Financial Group Degree of Financial Leverage Related Terms

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


Jefferies Financial Group Business Description

Traded in Other Exchanges
Address
520 Madison Avenue, New York, NY, USA, 10022
Jefferies Financial Group Inc is a full-service investment banking and capital markets firm. It has two reportable segments; Investment Banking and Capital Markets which is also the majority revenue generating segment, includes securities, commodities, corporate lending, futures and foreign exchange capital markets activities and its investment banking business, which provides underwriting and financial advisory services to clients across different sectors. The Asset Management reportable business segment provides alternative investment management services to investors in the U.S. and overseas and generates investment income from capital invested in and managed by it or its affiliated asset managers. Operates geographically in America, Europe and Middle East, Asia Pasific.
Executives
Joseph S Steinberg director, 10 percent owner, officer: President C/O LEUCADIA NATIONAL CORP, 315 PARK AVENUE SOUTH, NEW YORK NY 10010
Richard B Handler director, officer: CEO C/O JEFFERIES LLC, 520 MADISON AVE., NEW YORK NY 10022
Brian P Friedman director, officer: President
Robert D Beyer director 1014 VINE ST, CINCINNATI OH 45202
Mark Lawrence Cagno officer: VP and Co-Controller C/O JEFFERIES FINANCIAL GROUP INC., 520 MADISON AVENUE, NEW YORK NY 10022
Matthew Scott Larson officer: EVP, Co-CFO C/O JEFFERIES FINANCIAL GROUP INC., 520 MADISON AVENUE, NEW YORK NY 10022
Rocco J Nittoli officer: Treasurer 315 PARK AVENUE SOUTH, NEW YORK NY 10010
Thomas W Jones director ALTRIA GROUP INC, 6601 WEST BROAD STREET, RICHMOND VA 23230
O Kane Michael T director 80 HICKORY HILL BLVD, TOTOWA NJ 07512
Melissa Weiler director 399 PARK AVE 38TH FL, NEW YORK DC 10022
Matrice Ellis-kirk director C/O JEFFERIES FINANCIAL GROUP INC, 520 MADISON AVENUE, NEW YORK NY 10022
Stuart Harry Reese director
Barry J Alperin director C/O HENRY SCHEIN INC, 135 DURYEA RD, MELVILLE NY 11747
Maryanne Gilmartin director C/O JEFFERIES FINANCIAL GROUP INC., 520 MADISON AVE., NEW YORK NY 10022
Jacob M Katz director C/O HERC HOLDINGS INC., 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134