GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Strategic Acquisitions Inc (OTCPK:STQN) » Definitions » Degree of Financial Leverage

Strategic Acquisitions (Strategic Acquisitions) Degree of Financial Leverage : 1.25 (As of Mar. 2024)


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

What is Strategic Acquisitions 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). Strategic Acquisitions's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.25. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

STQN's Degree of Financial Leverage is not ranked
in the Credit Services industry.
Industry Median: 0.93 vs STQN: 1.25

Strategic Acquisitions Degree of Financial Leverage Historical Data

The historical data trend for Strategic Acquisitions'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.

Strategic Acquisitions Degree of Financial Leverage Chart

Strategic Acquisitions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 0.50 1.36 -0.23 4.16

Strategic Acquisitions Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.15 0.41 1.06 4.16 1.25

Competitive Comparison of Strategic Acquisitions's Degree of Financial Leverage

For the Credit Services subindustry, Strategic Acquisitions'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.


Strategic Acquisitions's Degree of Financial Leverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Strategic Acquisitions's Degree of Financial Leverage distribution charts can be found below:

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



Strategic Acquisitions Degree of Financial Leverage Calculation

Strategic Acquisitions's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.1 (Mar. 2024) / -0.01 (Mar. 2023) - 1 )/( 1.084 (Mar. 2024) / -0.139 (Mar. 2023) - 1 )
=-11/-8.7986
=1.25***

* 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.


Strategic Acquisitions  (OTCPK:STQN) 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.


Strategic Acquisitions Degree of Financial Leverage Related Terms

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


Strategic Acquisitions (Strategic Acquisitions) Business Description

Traded in Other Exchanges
N/A
Address
51 JFK Parkway, Suite 135, Short Hills, NJ, USA, 07078
Strategic Acquisitions Inc is engaged in providing loans collateralized by digital assets. The firm's platform under development will facilitate the origination and servicing of digital asset-backed loans and will consist of a customer-facing website, a mobile application, and a loan management system used to monitor the loans made by the firm. The Platform will provide an integrated service for the origination, documentation, and servicing of collateralized loans.
Executives
Exworth Management Llc 10 percent owner 51 JFK PARKWAY, 1ST FLOOR WEST #135, SHORT HILLS NJ 07078
Yuanyuan Huang director, officer: Secretary and Treasurer 51 JFK PARKWAY SUITE 135, SHORT HILLS NJ 07078
Wei Huang director 3303 BELMONT RIVER LN, KATY TX 77494
Jonathan Braun director 1459 SHUNPIKE RD., CAMBRIDGE NY 12816
John P Oshea director, officer: President C/O WESTMINSTER SECURITIES CORP, 100 WALL ST, 7TH FLOOR, NEW YORK NY 10005
Nextcoal International, Inc. 10 percent owner 1459 SHUNPIKE ROAD, CAMBRIDGE NY 12816
Marika Xirouhakis director, officer: Secretary 100 WALL ST, 7TH FL, NEW YORK NY 10005
Deborah A Salerno other: Exiting 10% Owner 75 MAIDEN LANE SUITE 214, NEW YORK NY 10280
Victor Edwin Stewart other: Resigning Director
Richard S Kaye other: Resigning Director

Strategic Acquisitions (Strategic Acquisitions) Headlines

No Headlines