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Reven Housing REIT (Reven Housing REIT) Degree of Financial Leverage : 0.00 (As of Jun. 2019)


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What is Reven Housing REIT 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). Reven Housing REIT's Degree of Financial Leverage for the quarter that ended in Jun. 2019 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

RVEN's Degree of Financial Leverage is not ranked *
in the REITs industry.
Industry Median: 1.08
* Ranked among companies with meaningful Degree of Financial Leverage only.

Reven Housing REIT Degree of Financial Leverage Historical Data

The historical data trend for Reven Housing REIT'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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Reven Housing REIT Degree of Financial Leverage Chart

Reven Housing REIT Annual Data
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Reven Housing REIT Quarterly Data
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Competitive Comparison of Reven Housing REIT's Degree of Financial Leverage

For the REIT - Residential subindustry, Reven Housing REIT'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.


Reven Housing REIT's Degree of Financial Leverage Distribution in the REITs Industry

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

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



Reven Housing REIT Degree of Financial Leverage Calculation

Reven Housing REIT's Degree of Financial Leverage for the quarter that ended in Jun. 2019 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.33 (Jun. 2019) / -0.23 (Jun. 2018) - 1 )/( -0.967 (Jun. 2019) / -0.908 (Jun. 2018) - 1 )
=0.4348/0.065
=6.69***

* 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.


Reven Housing REIT  (NAS:RVEN) 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.


Reven Housing REIT Degree of Financial Leverage Related Terms

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


Reven Housing REIT (Reven Housing REIT) Business Description

Industry
Traded in Other Exchanges
N/A
Address
875 Prospect Street, Suite 304, La Jolla, CA, USA, 92037
Reven Housing REIT Inc is a US-based company which engaged in the acquisition, ownership, and operation of portfolios of leased single-family homes (SFRs) in the United States. It operates its portfolio properties as single-family rentals generate revenues from rental income from the existing tenants of the SFRs acquired. The company owns nearly 600 single-family homes in the Houston, Jacksonville, Memphis and Atlanta metropolitan areas. Reven operates through the single segment of business being Operation of leased single-family homes. It earns the majority of its revenue from the United States.

Reven Housing REIT (Reven Housing REIT) Headlines