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PhosAgro PJSC (PhosAgro PJSC) Degree of Financial Leverage : 1.07 (As of Sep. 2023)


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What is PhosAgro PJSC 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). PhosAgro PJSC's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 1.07. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

PHOJY's Degree of Financial Leverage is ranked worse than
53.66% of 246 companies
in the Agriculture industry
Industry Median: 1.045 vs PHOJY: 1.07

PhosAgro PJSC Degree of Financial Leverage Historical Data

The historical data trend for PhosAgro PJSC'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.

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PhosAgro PJSC Degree of Financial Leverage Chart

PhosAgro PJSC Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.90 1.29 1.26 1.54 0.97

PhosAgro PJSC Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 1.08 0.97 1.03 1.01 1.07

Competitive Comparison of PhosAgro PJSC's Degree of Financial Leverage

For the Agricultural Inputs subindustry, PhosAgro PJSC'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.


PhosAgro PJSC's Degree of Financial Leverage Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, PhosAgro PJSC's Degree of Financial Leverage distribution charts can be found below:

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



PhosAgro PJSC Degree of Financial Leverage Calculation

PhosAgro PJSC's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0 (Sep. 2023) / 1.461 (Sep. 2022) - 1 )/( 1414.437 (Sep. 2023) / 3742.889 (Sep. 2022) - 1 )
=/-0.6221
=0.00***

* 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.


PhosAgro PJSC  (OTCPK:PHOJY) 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.


PhosAgro PJSC Degree of Financial Leverage Related Terms

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


PhosAgro PJSC (PhosAgro PJSC) Business Description

Traded in Other Exchanges
Address
Leninsky Prospekt, Apartment 55/1, Building 1, Moscow, RUS, 119333
PhosAgro PJSC produces and distributes fertilizer to the agricultural industry. The company has two segments organized by product: phosphate and nitrogen. The phosphate segment mines apatite-nepheline ore and then processes the ore into sulfate of potash fertilizer. The nitrogen segment produces nitrogen and ammonia-based fertilizers. To compete on cost, the firm controls its logistics operations through the ownership of ships, ports, and railroad cars. It generates revenue throughout the world, with Russia and Europe being its biggest markets.