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Quest Water Global (Quest Water Global) Degree of Financial Leverage : 1.09 (As of Dec. 2023)


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What is Quest Water Global 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). Quest Water Global's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.09. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

QWTR's Degree of Financial Leverage is ranked worse than
58.8% of 2927 companies
in the Industrial Products industry
Industry Median: 1.01 vs QWTR: 1.09

Quest Water Global Degree of Financial Leverage Historical Data

The historical data trend for Quest Water Global'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.

Quest Water Global Degree of Financial Leverage Chart

Quest Water Global Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only - - -4.17 1.38 1.09

Quest Water Global Quarterly Data
Mar14 Jun14 Sep14 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 1.38 0.78 0.35 1.27 1.09

Competitive Comparison of Quest Water Global's Degree of Financial Leverage

For the Pollution & Treatment Controls subindustry, Quest Water Global'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.


Quest Water Global's Degree of Financial Leverage Distribution in the Industrial Products Industry

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

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



Quest Water Global Degree of Financial Leverage Calculation

Quest Water Global's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.005 (Dec. 2023) / -0.011 (Dec. 2022) - 1 )/( -0.596 (Dec. 2023) / -1.192 (Dec. 2022) - 1 )
=-0.5455/-0.5
=1.09***

* 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.


Quest Water Global  (OTCPK:QWTR) 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.


Quest Water Global Degree of Financial Leverage Related Terms

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


Quest Water Global (Quest Water Global) Business Description

Traded in Other Exchanges
N/A
Address
828 Harbourside Drive, Suite 209, North Vancouver, BC, CAN, V7P 3R9
Quest Water Global Inc is engaged in the pollution and treatment controls business sector. The company provides various solutions to water-scarce regions. The company's product portfolio consists of AQUAtap, which is a self-contained, solar-powered, decentralized water purification and distribution system, and WEPS (Water Extraction and Purification Systems), which provide water-scarce regions with an alternate, sustainable, pure source of water.
Executives
Peter Miele director, 10 percent owner 2434 NELSON AVENUE, WEST VANCOUVER A1 V7V 4H6
John Balanko director, 10 percent owner, officer: President, CEO 775 ST. ANDREWS ROAD, WEST VANCOUVER A1 V7S 1V5

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