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TRMB (Trimble) Degree of Financial Leverage : 1.51 (As of Mar. 2025)


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What is Trimble 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). Trimble's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 1.51. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TRMB's Degree of Financial Leverage is ranked worse than
80.27% of 2402 companies
in the Hardware industry
Industry Median: 0.98 vs TRMB: 1.51

Trimble Degree of Financial Leverage Historical Data

The historical data trend for Trimble'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.

Trimble Degree of Financial Leverage Chart

Trimble 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 -2.26 0.71 -247.42 1.58 1.27

Trimble 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 1.54 1.15 1.16 1.27 1.51

Competitive Comparison of Trimble's Degree of Financial Leverage

For the Scientific & Technical Instruments subindustry, Trimble'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.


Trimble's Degree of Financial Leverage Distribution in the Hardware Industry

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

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


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Trimble Degree of Financial Leverage Calculation

Trimble'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
=( 6.13 (Mar. 2025) / 0.96 (Mar. 2024) - 1 )/( 2080.4 (Mar. 2025) / 455.9 (Mar. 2024) - 1 )
=5.3854/3.5633
=1.51***

* 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.


Trimble  (NAS:TRMB) 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.


Trimble Degree of Financial Leverage Related Terms

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


Trimble Business Description

Industry
Traded in Other Exchanges
Address
10368 Westmoor Drive, Westminister, CO, USA, 80021
Trimble Inc provides a technology solutions provider that enables office and mobile professionals to connect their workflows and asset lifecycles to drive a more productive, sustainable future. The company has four reportable segments: Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. The company generates the majority of its revenue from the Buildings and Infrastructure segment, which primarily serves customers working in architecture, engineering, construction, design, asset management, operations, and maintenance.
Executives
James Calvin Dalton director 2065 COURTHOUSE ROAD, STAFFORD VA 22554
Jennifer Allison officer: Corporate VP, General Counsel 10368 WESTMOOR DRIVE, WESTMINSTER CO 80021
Peter Large officer: Senior Vice President 935 STEWART DRIVE, SUNNYVALE CA 94085
Robert G Painter officer: CFO C/O TRIMBLE INC., 935 STEWART DRIVE, SUNNYVALE CA 94085
Darryl R Matthews officer: SVP & Sector Head C/O TRIMBLE INC., 935 STEWART DRIVE, SUNNYVALE CA 94085
Mark S Peek director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Kaigham Gabriel director C/O TRIMBLE INC., 935 STEWART DR, SUNNYVALE CA 94085
Ronald Bisio officer: Sr. Vice President C/O TRIMBLE INC., 935 STEWARD DR., SUNNYVALE CA 94085
Jennifer Lin officer: Chief Platform Officer 935 STEWART DRIVE, SUNNYVALE CA 94085
James A Kirkland officer: Vice President C/O TRIMBLE INC., 935 STEWART DRIVE, SUNNYVALE CA 94085
James Joel Langley officer: Sr. Vice President 935 STEWART DRIVE, SUNNYVALE CA 94085
Thomas W Sweet director ONE DELL WAY, ROUND ROCK TX 78682
Sandra Macquillan director P.O. BOX 619100, DALLAS TX 75261-9100
Bryn Fosburgh officer: VP, Geomatics & Engineering C/O TRIMBLE INC., 935 STEWART DRIVE, SUNNYVALE CA 94085
Steven W Berglund officer: President & CEO C/O TRIMBLE INC., 935 STEWART DRIVE, SUNNYVALE CA 94085