GURUFOCUS.COM » STOCK LIST » Technology » Software » Tracsis PLC (OTCPK:TCIIF) » Definitions » Degree of Financial Leverage

TCIIF (Tracsis) Degree of Financial Leverage : 1.03 (As of Jan. 2025)


View and export this data going back to 2012. Start your Free Trial

What is Tracsis 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). Tracsis's Degree of Financial Leverage for the quarter that ended in Jan. 2025 was 1.03. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TCIIF's Degree of Financial Leverage is ranked worse than
56.91% of 2664 companies
in the Software industry
Industry Median: 0.98 vs TCIIF: 1.03

Tracsis Degree of Financial Leverage Historical Data

The historical data trend for Tracsis'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.

Tracsis Degree of Financial Leverage Chart

Tracsis Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.21 -1.52 0.86 2.09 1.10

Tracsis Semi-Annual Data
Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25
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 0.05 2.09 3.49 1.10 1.03

Competitive Comparison of Tracsis's Degree of Financial Leverage

For the Software - Application subindustry, Tracsis'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.


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

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

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


;
;

Tracsis Degree of Financial Leverage Calculation

Tracsis's Degree of Financial Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.022 (Jan. 2025) / 0.197 (Jan. 2024) - 1 )/( 0.887 (Jan. 2025) / 6.082 (Jan. 2024) - 1 )
=-0.8883/-0.8542
=1.04***

* 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.


Tracsis  (OTCPK:TCIIF) 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.


Tracsis Degree of Financial Leverage Related Terms

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


Tracsis Business Description

Industry
Traded in Other Exchanges
Address
Discovery Way, Nexus, Leeds, GBR, LS2 3AA
Tracsis PLC is engaged in the business of software development and consultancy for the rail industry. It is organized into two main business segments: Rail Technology and Services and Data, Analytics, Consultancy & Events. The Rail Technology and Services division includes software, consultancy, and remote condition monitoring technology and also includes Ontrac. The Data, Analytics, Consultancy & Events division which derives majority revenue, focuses on data capture and analytics, geographic information systems, earth observation, consultancy and event traffic management within a range of transport and pedestrian rich environments. The company currently operates in three geographical markets: the United Kingdom, Ireland, Rest of Europe, North America, and Rest of the world.

Tracsis Headlines