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SRNW (Stratos Renewables) Degree of Financial Leverage : 1.20 (As of Mar. 2025)


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What is Stratos Renewables 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). Stratos Renewables's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 1.20. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

SRNW's Degree of Financial Leverage is ranked worse than
66.47% of 346 companies
in the Diversified Financial Services industry
Industry Median: 0.72 vs SRNW: 1.20

Stratos Renewables Degree of Financial Leverage Historical Data

The historical data trend for Stratos Renewables'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.

Stratos Renewables Degree of Financial Leverage Chart

Stratos Renewables Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only 0.62 - - -3.27 1.26

Stratos Renewables Quarterly Data
Mar09 Jun09 Sep09 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -3.29 1.99 - 1.26 1.20

Competitive Comparison of Stratos Renewables's Degree of Financial Leverage

For the Shell Companies subindustry, Stratos Renewables'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.


Stratos Renewables's Degree of Financial Leverage Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Stratos Renewables's Degree of Financial Leverage distribution charts can be found below:

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


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Stratos Renewables Degree of Financial Leverage Calculation

Stratos Renewables's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.001 (Mar. 2025) / -0.01 (Mar. 2024) - 1 )/( -0.052 (Mar. 2025) / -0.598 (Mar. 2024) - 1 )
=-1.1/-0.913
=1.20***

* 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.


Stratos Renewables  (OTCPK:SRNW) 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.


Stratos Renewables Degree of Financial Leverage Related Terms

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


Stratos Renewables Business Description

Traded in Other Exchanges
N/A
Address
3535 Executive Terminal Drive, Henderson, NV, USA, 89052
Stratos Renewables Corp is a shell company and is exploring opportunities to identify targets for acquisition.
Executives
I2bf Biodiesel Ltd 10 percent owner 650 PAGE MILL ROAD, PALO ALTO CA 94304
Leonard Brooks director 9440 LITTLE SANTA MONICA BOULEVARD, SUITE 401, BEVERLY HILLS CA 90210
Thomas Charles Snyder officer: President AVENUE DE MESSIDOR 310, BRUSSELS C9 1180
Stephen L Norris director 1701 SOUTH FLAGLER DRIVE 1807, WEST PALM BEACH FL 33401
Valerie A Broadbent officer: SECRETARY 9440 LITTLE SANTA MONICA BLVD, SUITE 401, BEVERLY HILLS CA 90210
Sanjay Pai officer: Chief Strategy Officer 200 EAST 64TH STREET 4B, NEW YORK NY 10065
Luis Humberto Goyzueta director, 10 percent owner, officer: President CALLE LOS EUCHARIZ 150, DPTO 201, MONTERRICO R5 PERU
Goyzueta Angobaldo Gustavo Adolfo officer: Secretary CALLE LA CORUNA 149, URB. LA ESTANCIA, LA MOLINA, LIMA R5 12
Steven Magami director, 10 percent owner C/O ARC INVESTMENT PARTNERS, LLC, 9440 LITTLE SANTA MONICA BLVD, SUITE 400, BEVERLY HILLS CA 90210
Julio Cesar Alonso officer: Chief Financial Officer 9440 LITTLE SANTA MONICA, SUITE 401, BEVERLY HILLS CA 90210
Carlos Antonio Salas director, officer: Chief Executive Officer 9440 LITTLE SANTA MONICA, SUITE 401, BEVERLY HILLS CA 90210
De Las Casas Luis Francisco director 9440 LITTLE SANTA MONICA, SUITE 401, BEVERLY HILLS CA 90210
Jorge Eduardo Aza officer: Chief Operating Officer 9440 LITTLE SANTA MONICA, SUITE 401, BEVERLY HILLS CA 90210

Stratos Renewables Headlines

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