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Summa Silver (TSXV:SSVR) Degree of Financial Leverage : -3.30 (As of Feb. 2025)


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What is Summa Silver 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). Summa Silver's Degree of Financial Leverage for the quarter that ended in Feb. 2025 was -3.30. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TSXV:SSVR's Degree of Financial Leverage is ranked better than
93.18% of 2257 companies
in the Metals & Mining industry
Industry Median: 0.95 vs TSXV:SSVR: -3.30

Summa Silver Degree of Financial Leverage Historical Data

The historical data trend for Summa Silver'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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Summa Silver Degree of Financial Leverage Chart

Summa Silver Annual Data
Trend Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Financial Leverage
Get a 7-Day Free Trial 0.75 0.34 1.78 1.78 199.27

Summa Silver Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 27.65 - 199.27 4.47 -3.30

Competitive Comparison of Summa Silver's Degree of Financial Leverage

For the Other Precious Metals & Mining subindustry, Summa Silver'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.


Summa Silver's Degree of Financial Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Summa Silver's Degree of Financial Leverage distribution charts can be found below:

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


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Summa Silver Degree of Financial Leverage Calculation

Summa Silver's Degree of Financial Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.04 (Feb. 2025) / -0.03 (Feb. 2024) - 1 )/( -2.956 (Feb. 2025) / -3.288 (Feb. 2024) - 1 )
=0.3333/-0.101
=-3.30***

* 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.


Summa Silver  (TSXV:SSVR) 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.


Summa Silver Degree of Financial Leverage Related Terms

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


Summa Silver Business Description

Traded in Other Exchanges
Address
1030 West Georgia Street, Suite 918, Vancouver, BC, CAN, V6E 2Y3
Summa Silver Corp is a Canadian junior mineral exploration company. It owns interests in the Hughes project in central Nevada, and the Mogollon project in southwestern New Mexico, covering a wide range of silver-gold bearing epithermal vein fields. The company has three reportable operating segments, being that of acquisition and exploration and evaluation activities at the Hughes property in Nevada, the Mogollon property in New Mexico, and its corporate headquarters located in Canada.
Executives
Galen Stuart Mcnamara 10% Security Holder
2176423 Ontario Ltd. 10% Security Holder
Eric Sprott 10% Security Holder
Allegiant Gold Ltd. 10% Security Holder
Thomas O'neill Director

Summa Silver Headlines

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