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SideChannel (SideChannel) Degree of Financial Leverage : -0.21 (As of Dec. 2023)


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What is SideChannel 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). SideChannel's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was -0.21. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

SDCH's Degree of Financial Leverage is ranked better than
88.24% of 2627 companies
in the Software industry
Industry Median: 0.99 vs SDCH: -0.21

SideChannel Degree of Financial Leverage Historical Data

The historical data trend for SideChannel'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.

SideChannel Degree of Financial Leverage Chart

SideChannel Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.36 3.14 0.72 -1.62 0.04

SideChannel Quarterly Data
Mar19 Jun19 Sep19 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 -8.63 2.02 1.88 0.04 -0.21

Competitive Comparison of SideChannel's Degree of Financial Leverage

For the Software - Infrastructure subindustry, SideChannel'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.


SideChannel's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, SideChannel's Degree of Financial Leverage distribution charts can be found below:

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



SideChannel Degree of Financial Leverage Calculation

SideChannel'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
=( -0.045 (Dec. 2023) / -0.078 (Dec. 2022) - 1 )/( -1.912 (Dec. 2023) / -0.637 (Dec. 2022) - 1 )
=-0.4231/2.0016
=-0.21***

* 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.


SideChannel  (OTCPK:SDCH) 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.


SideChannel Degree of Financial Leverage Related Terms

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


SideChannel (SideChannel) Business Description

Industry
Traded in Other Exchanges
N/A
Address
146 Main Street, Suite 406, Worcester, MA, USA, 01608
SideChannel Inc is a provider of cybersecurity services and technology to companies; national, state, and local municipalities; and non-profits. The company earns maximum revenue from vCISO Services that capture the revenue, the Chief Information Security Officer services that it provides to its clients on a 'virtual' or outsourced basis.
Executives
Ryan Polk officer: Chief Financial Officer 7635 INTERACTIVE WAY, SUITE 200, INDIANAPOLIS IN 46278
Brian Wayne Haugli director, 10 percent owner, officer: Chief Executive Officer 146 MAIN ST, SUITE #405, WORCESTER MA 01608
Regan Hugh T Jr director C/O INTEST CORP, 804 EAST GATE DR., SUITE 200, MT. LAUREL NJ 08054
Anthony Ambrose director 6645 185TH AVE NE SUITE 100, REDMOND WA 98052
Deborah Kuenzi Macconnel director 146 MAIN ST, SUITE #405, WORCESTER MA 01608
Kevin Robert Powers director 146 MAIN ST, SUITE #405, WORCESTER MA 01608
Nicholas William Hnatiw officer: Chief Technology Officer 6836 BEE CAVE ROAD,, BLDG 1 #279, AUSTIN TX 78746
Sammy Eugene Davis director 6836 BEE CAVE ROAD, BLDG 1 #279, AUSTIN TX 78746
Andrew Borene officer: Chief Executive Officer 825 MAIN STREET, SUITE 100, BUDA TX 78610
Manchester Management Pr, Llc 10 percent owner 3 WEST HILL PLACE, BOSTON MA 02114
Zeynep Young director 825 MAIN ST., SUITE 100, BUDA TX 78610
David Chasteen director 825 MAIN ST, SUITE 100, BUDA TX 78610
Thomas Wiley Wilkinson director 3 COLERIDGE LANE, AUSTIN TX 78746
James E Besser 10 percent owner 3 WEST HILL PLACE, BOSTON MA 02114
Manchester Explorer, L.p. 10 percent owner MANCHESTER MANAGEMENT COMPANY, L.L.C, 3 WEST HILL PLACE, Boston ma 02114