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TRAW (Traws Pharma) Degree of Financial Leverage : 13.75 (As of Mar. 2025)


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What is Traws Pharma 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). Traws Pharma's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 13.75. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TRAW's Degree of Financial Leverage is ranked worse than
98.27% of 1447 companies
in the Biotechnology industry
Industry Median: 0.96 vs TRAW: 13.75

Traws Pharma Degree of Financial Leverage Historical Data

The historical data trend for Traws Pharma'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.

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Traws Pharma Degree of Financial Leverage Chart

Traws Pharma Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.24 1.61 -0.33 -0.17 17.79

Traws Pharma Quarterly Data
Jun20 Sep20 Dec20 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 1.24 -67.96 41.53 17.79 13.75

Competitive Comparison of Traws Pharma's Degree of Financial Leverage

For the Biotechnology subindustry, Traws Pharma'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.


Traws Pharma's Degree of Financial Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Traws Pharma's Degree of Financial Leverage distribution charts can be found below:

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


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Traws Pharma Degree of Financial Leverage Calculation

Traws Pharma'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
=( -106.029 (Mar. 2025) / -21.54 (Mar. 2024) - 1 )/( -24.901 (Mar. 2025) / -19.373 (Mar. 2024) - 1 )
=3.9224/0.2853
=13.75***

* 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.


Traws Pharma  (NAS:TRAW) 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.


Traws Pharma Degree of Financial Leverage Related Terms

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


Traws Pharma Business Description

Industry
Traded in Other Exchanges
N/A
Address
12 Penns Trail, Newtown, PA, USA, 18940
Traws Pharma Inc is a clinical-stage biopharmaceutical company dedicated to developing novel therapies to target critical threats to human health in respiratory viral diseases. It is advancing novel investigational antiviral agents that have potent activity against difficult-to-treat or resistant virus strains that threaten human health. Its product candidates are Tivoxavir marboxil, Ratutrelvir, and Narazaciclib.
Executives
Victor M Moyo officer: CHIEF MEDICAL OFFICER 12 PENNS TRAIL, NEWTOWN PA 18940
Trafford Clarke director 12 PENNS TRAIL, NEWTOWN PA 18940
Peter Atadja director 12 PENNS TRAIL, NEWTOWN PA 18940
Abraham N. Oler officer: VP Corp Dev & Gen Counsel C/O SPECTRUM PHARMACEUTICALS, 11500 SOUTH EASTERN AVENUE, SUITE 240, HENDERSON NV 89052
Steven M Fruchtman officer: Chief Medical Officer 375 PHEASANT RUN, NEWTOWN PA 18940
James J Marino director C/O ONCONOVA THERAPEUTICS, 375 PHEASANT RUN, NEWTOWN PA 18940
Gelder Mark S. Md officer: Chief Medical Officer C/O A.P. PHARMA, INC., 123 SAGINAW DRIVE, REDWOOD CITY CA 94063
Mark Patrick Guerin officer: Chief Accounting Officer 375 PHEASANT RUN, NEWTOWN PA 18940
Mary Teresa Shoemaker director 375 PHEASANT RUN, NEWTOWN PA 18940
Michael B Hoffman director 1 GREENWICH OFFICE PARK, GREENWICH CT 06831
E Premkumar Reddy director 375 PHEASANT RUN, NEWTOWN PA 18940
Jerome Groopman director C/O GENTA INC, TWO CONNELL DR, BERKELEY HEIGHTS NJ 07922
Viren Mehta director OSI PHARMACEUTICALS INC, 58 S SERVICE RD STE 110, MELVILLE NY 11747
Tyndall Capital Partners L P 10 percent owner 150 EAST 58TH STREET, 14TH FLOOR, NEW YORK NY 10155
Armistice Capital, Llc 10 percent owner 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022