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OUT (Outfront Media) Degree of Financial Leverage : 0.59 (As of Sep. 2024)


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What is Outfront Media 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). Outfront Media's Degree of Financial Leverage for the quarter that ended in Sep. 2024 was 0.59. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

OUT's Degree of Financial Leverage is ranked better than
64.65% of 744 companies
in the REITs industry
Industry Median: 0.975 vs OUT: 0.59

Outfront Media Degree of Financial Leverage Historical Data

The historical data trend for Outfront Media'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.

Outfront Media Degree of Financial Leverage Chart

Outfront Media Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.29 2.09 -0.90 48.81 2.22

Outfront Media Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.09 2.22 2.54 0.57 0.59

Competitive Comparison of Outfront Media's Degree of Financial Leverage

For the REIT - Specialty subindustry, Outfront Media'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.


Outfront Media's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Outfront Media's Degree of Financial Leverage distribution charts can be found below:

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



Outfront Media Degree of Financial Leverage Calculation

Outfront Media's Degree of Financial Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.37 (Sep. 2024) / -2.68 (Sep. 2023) - 1 )/( 415.6 (Sep. 2024) / -265.8 (Sep. 2023) - 1 )
=-1.5112/-2.5636
=0.59***

* 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.


Outfront Media  (NYSE:OUT) 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.


Outfront Media Degree of Financial Leverage Related Terms

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


Outfront Media Business Description

Industry
Traded in Other Exchanges
Address
90 Park Avenue, 9th Floor, New York, NY, USA, 10016
Outfront Media Inc is a real estate investment trust involved in the ownership of advertising space on its portfolio of billboards and transit displays. The Company generates revenue in the form of rental income by allowing other companies to advertise on its properties and structures under short-term contracts. Outfront Media segments its operations into the United States and International units. Although it also owns assets in Canada and Latin America, the company derives the vast majority of its revenue from billboard advertising agreements in the U.S. Roughly half of the U.S. division's revenue comes from its displays in the New York City and Los Angeles markets. Outfront Media's major customers include entities within the retail, television, healthcare, and entertainment industries.
Executives
Clive A. Punter officer: EVP and Chief Revenue Officer C/O CBS OUTDOOR AMERICAS INC., 405 LEXINGTON AVENUE, NEW YORK NY 10174
Patrick Martin officer: SVP, Controller, CAO 405 LEXINGTON AVENUE, 14TH FLOOR, NEW YORK NY 10174
Jeremy J. Male officer: Chief Executive Officer C/O OUTFRONT MEDIA INC., 405 LEXINGTON AVENUE, NEW YORK NY 10019
Richard H. Sauer officer: EVP, General Counsel & Sec. C/O OUTFRONT MEDIA INC., 405 LEXINGTON AVENUE, NEW YORK NY 10019
Peter Mathes director C/O OUTFRONT MEDIA INC., 405 LEXINGTON AVENUE, NEW YORK NY 10174
Pep Viii-a Aiv Spv, L.p. 10 percent owner 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Pep Viii (scotland) Spv, L.p. 10 percent owner 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Pep Viii-a Spv, L.p. 10 percent owner 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Pep Viii Spv, L.p. 10 percent owner 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Pep Viii Gp Llc 10 percent owner 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Pep Viii Co-invest Spv, L.p. 10 percent owner 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Michael J Dominguez director C/O PROVIDENCE EQUITY PARTNERS, INC., 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Providence Equity Gp Viii (scotland) L.p. 10 percent owner 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Providence Equity Partners Viii-a L.p. 10 percent owner PROVIDENCE EQUITY PARTNERS L.L.C., 50 KENNEDY PLAZA, PROVIDENCE RI 02903
Providence Equity Partners Viii (scotland) L.p. 10 percent owner PROVIDENCE EQUITY PARTNERS L.L.C., 50 KENNEDY PLAZA, PROVIDENCE RI 02903