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The Pegasus (The Pegasus) Degree of Financial Leverage : 0.00 (As of Sep. 2006)


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What is The Pegasus 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). The Pegasus's Degree of Financial Leverage for the quarter that ended in Sep. 2006 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

PEGX's Degree of Financial Leverage is not ranked *
in the Media - Diversified industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Financial Leverage only.

The Pegasus Degree of Financial Leverage Historical Data

The historical data trend for The Pegasus'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.

The Pegasus Degree of Financial Leverage Chart

The Pegasus Annual Data
Trend Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05
Degree of Financial Leverage
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The Pegasus Quarterly Data
Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06
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Competitive Comparison of The Pegasus's Degree of Financial Leverage

For the Broadcasting subindustry, The Pegasus'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.


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

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

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



The Pegasus Degree of Financial Leverage Calculation

The Pegasus's Degree of Financial Leverage for the quarter that ended in Sep. 2006 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -369 (Sep. 2006) / 2908 (Sep. 2005) - 1 )/( -36.513 (Sep. 2006) / -29.736 (Sep. 2005) - 1 )
=-1.1269/0.2279
=-4.94***

* 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.


The Pegasus  (OTCPK:PEGX) 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.


The Pegasus Degree of Financial Leverage Related Terms

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The Pegasus (The Pegasus) Business Description

Traded in Other Exchanges
N/A
Address
225 City Line Avenue, Suite 100, Bala Cynwyd, PA, USA, 19004
The Pegasus Companies Inc is the holding company for a variety of satellite and media companies. The company previously operated as an independent provider of DIRECTV to more than 1.1 million subscribers but went into bankruptcy following the termination of the relationship. The company primarily owns and operates six broadcast TV stations and operates three others. These stations serve markets in Tennessee, Florida, Pennsylvania, and Maine.
Executives
Peninsula Investment Partners, L.p. 10 percent owner 404B EAST MAIN STREET, 2ND FLOOR, CHARLOTTESVILLE, VA 22902
Peninsula Capital Advisors Llc 10 percent owner 404B EAST MAIN STREET, 2ND FLOOR, CHARLOTTESVILLE, VA 22902
James Mcentee director CIRA CENTRE, 2929 ARCH STREET, 17TH FLOOR, PHILADELPHIA PA 19104-2870
Ronald B Stark officer: Principal Accounting Officer C/O NRG ENERGY, INC., 211 CARNEGIE CENTER, PRINCETON NJ 08540
Par Capital Management Inc 10 percent owner 200 CLARENDON STREET, FL 48, BOSTON MA 02116
Pegasus Capital Llc 10 percent owner C/O PEGASUS CAPITAL ADVISORS, L.P., 750 EAST MAIN STREET, SUITE 600, STAMFORD CT 06902

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