GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Sirius Minerals PLC (OTCPK:SRUXY) » Definitions » Degree of Financial Leverage

Sirius Minerals (Sirius Minerals) Degree of Financial Leverage : 0.00 (As of Jun. 2019)


View and export this data going back to 2010. Start your Free Trial

What is Sirius Minerals 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). Sirius Minerals'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 Sirius Minerals's Degree of Financial Leverage or its related term are showing as below:

SRUXY's Degree of Financial Leverage is not ranked *
in the Agriculture industry.
Industry Median: 1.06
* Ranked among companies with meaningful Degree of Financial Leverage only.

Sirius Minerals Degree of Financial Leverage Historical Data

The historical data trend for Sirius Minerals'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.

Sirius Minerals Degree of Financial Leverage Chart

Sirius Minerals Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Dec16 Dec17 Dec18
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

Sirius Minerals Semi-Annual Data
Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
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 - - - - -

Competitive Comparison of Sirius Minerals's Degree of Financial Leverage

For the Agricultural Inputs subindustry, Sirius Minerals'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.


Sirius Minerals's Degree of Financial Leverage Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Sirius Minerals's Degree of Financial Leverage distribution charts can be found below:

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



Sirius Minerals Degree of Financial Leverage Calculation

Sirius Minerals'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
=( 0.777 (Jun. 2019) / -0.227 (Jun. 2018) - 1 )/( 103.413 (Jun. 2019) / -29.26 (Jun. 2018) - 1 )
=-4.4229/-4.5343
=0.98***

* 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.


Sirius Minerals  (OTCPK:SRUXY) 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.


Sirius Minerals Degree of Financial Leverage Related Terms

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


Sirius Minerals (Sirius Minerals) Business Description

Traded in Other Exchanges
N/A
Address
68 Haymarket, Third Floor, Greener House, London, GBR, SW1Y 4RF
Sirius Minerals PLC is a producer of multi-nutrient fertilizers. The company is currently organized into one business division: the UK segment. Under its UK segment, the firm conducts North Yorkshire polyhalite project related activities and the corporate operations. POLY4 is the trademark name of all polyhalite products from the company. The company operates its business mainly in the United Kingdom.

Sirius Minerals (Sirius Minerals) Headlines

From GuruFocus

Sirius Minerals: Financing will be a serious challenge

By Bronte Capital Bronte Capital 07-02-2015