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BNS Split II (TSX:BSC.PR.C.PFD) Degree of Financial Leverage : 0.00 (As of Mar. 2020)


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What is BNS Split II 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). BNS Split II's Degree of Financial Leverage for the quarter that ended in Mar. 2020 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TSX:BSC.PR.C.PFD's Degree of Financial Leverage is not ranked *
in the Asset Management industry.
Industry Median: 0.97
* Ranked among companies with meaningful Degree of Financial Leverage only.

BNS Split II Degree of Financial Leverage Historical Data

The historical data trend for BNS Split II'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.

BNS Split II Degree of Financial Leverage Chart

BNS Split II Annual Data
Trend Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Degree of Financial Leverage
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BNS Split II Semi-Annual Data
Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20
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Competitive Comparison of BNS Split II's Degree of Financial Leverage

For the Asset Management subindustry, BNS Split II'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.


BNS Split II's Degree of Financial Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, BNS Split II's Degree of Financial Leverage distribution charts can be found below:

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



BNS Split II Degree of Financial Leverage Calculation

BNS Split II's Degree of Financial Leverage for the quarter that ended in Mar. 2020 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0 (Mar. 2020) / 0 (Mar. 2019) - 1 )/( -6.623 (Mar. 2020) / -2.638 (Mar. 2019) - 1 )
=/1.5106
=0.00***

* 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.


BNS Split II  (TSX:BSC.PR.C.PFD) 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.


BNS Split II Degree of Financial Leverage Related Terms

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BNS Split II (TSX:BSC.PR.C.PFD) Business Description

Traded in Other Exchanges
N/A
Address
150 King Street West, 18th Floor, Toronto, ON, CAN, M5H 1J9
BNS Split Corp II is a Canada based company. It holds a portfolio consisting of common shares of the Bank of Nova Scotia in order to generate income for the holders of the company's preferred shares and to enable the holders of the company's capital shares to participate in any capital appreciation in the BNS shares. The company receives maximum revenue in the form of dividend income.

BNS Split II (TSX:BSC.PR.C.PFD) Headlines

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