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REAC Group (REAC Group) Degree of Financial Leverage : 0.00 (As of Dec. 2019)


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What is REAC Group 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). REAC Group's Degree of Financial Leverage for the quarter that ended in Dec. 2019 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

REAC's Degree of Financial Leverage is not ranked *
in the Real Estate industry.
Industry Median: 1.02
* Ranked among companies with meaningful Degree of Financial Leverage only.

REAC Group Degree of Financial Leverage Historical Data

The historical data trend for REAC Group'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.

REAC Group Degree of Financial Leverage Chart

REAC Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Degree of Financial Leverage
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REAC Group Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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Competitive Comparison of REAC Group's Degree of Financial Leverage

For the Real Estate Services subindustry, REAC Group'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.


REAC Group's Degree of Financial Leverage Distribution in the Real Estate Industry

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

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



REAC Group Degree of Financial Leverage Calculation

REAC Group's Degree of Financial Leverage for the quarter that ended in Dec. 2019 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.34 (Dec. 2019) / -17.84 (Dec. 2018) - 1 )/( -4.124 (Dec. 2019) / -0.627 (Dec. 2018) - 1 )
=-0.9809/5.5774
=-0.18***

* 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.


REAC Group  (OTCPK:REAC) 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.


REAC Group Degree of Financial Leverage Related Terms

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


REAC Group (REAC Group) Business Description

Industry
Traded in Other Exchanges
N/A
Address
74th Street UNIT 1, 3400 North-West, Miami, FL, USA, 33122
REAC Group Inc owns and operates the real estate advertising portal website. The company provides an online website that serves as an internet portal that features a real estate search engine and a media network that directs consumers to receive detailed information about agents, offices, and current listings, homes for sale, commercial properties, mortgages, and foreclosures. It provides a service that enables real estate professionals to grow their businesses online.
Executives
Robert Deangelis director, 10 percent owner, officer: President,Secretary,Treasurer 8878 COVENANT AVENUE NO. 209 PITTSBURGH PA 15237
Baker Myers & Associates, Llc 10 percent owner 4124 FRANKLIN ROAD NASHVILLE TN 37204
Ivan Baca 10 percent owner 2885 E. MIDWAY BLVD., NO. 432 BROOMFIELD CO 80234
Eric Daniel Strom 10 percent owner 110 APACHE PLUME ST. BRIGHTON CO 80601

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