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Ovivo (LVGAF) Degree of Financial Leverage : 0.00 (As of Jun. 2016)


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What is Ovivo 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). Ovivo's Degree of Financial Leverage for the quarter that ended in Jun. 2016 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

LVGAF's Degree of Financial Leverage is not ranked *
in the Industrial Products industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Financial Leverage only.

Ovivo Degree of Financial Leverage Historical Data

The historical data trend for Ovivo'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.

Ovivo Degree of Financial Leverage Chart

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

For the Pollution & Treatment Controls subindustry, Ovivo'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.


Ovivo's Degree of Financial Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ovivo's Degree of Financial Leverage distribution charts can be found below:

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



Ovivo Degree of Financial Leverage Calculation

Ovivo's Degree of Financial Leverage for the quarter that ended in Jun. 2016 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.085 (Jun. 2016) / -0.821 (Jun. 2015) - 1 )/( 8.82 (Jun. 2016) / -18.271 (Jun. 2015) - 1 )
=-1.1035/-1.4827
=0.74***

* 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.


Ovivo  (OTCPK:LVGAF) 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.


Ovivo Degree of Financial Leverage Related Terms

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Ovivo (LVGAF) Business Description

Traded in Other Exchanges
N/A
Address
Ovivo Inc was incorporated in May 15, 2007 in Canada. The Company is a provider of technological solutions used in water treatment well as in pulp and paper production. The Corporation operates in more than 25 countries. The Company and its subsidiaries conduct their activities in two main groups: Ovivo and GL&V Pulp and Paper. The Water Treatment Group (Ovivo) designs and markets treatment and recycling solutions and components for municipal and industrial wastewater as well as water used in various industrial processes. The Group also develops seawater desalination technologies and offers water intake screening solutions for power stations, refineries and water desalination facilities. With its technological portfolio, it is positioned to provide comprehensive solutions for the filtration, clarification, treatment and purification of water to be returned into the environment, re-used in various industrial processes or used for domestic purposes. The pulp and paper Group designs and markets equipment used in various stages of paper production, from pulp preparation to sheet formation and finishing. It also serves with rebuilding, upgrading and optimization services for existing equipment, as well as the sale of replacement parts. The Company operates in following geographic segment: United States, Canada, United Kingdom, Other - Europe and Russia, Asia and Asia-Pacific, Middle East and Africa & Latin America.