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UCP (UCP) Degree of Financial Leverage : 0.00 (As of Mar. 2017)


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What is UCP 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). UCP's Degree of Financial Leverage for the quarter that ended in Mar. 2017 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

UCP's Degree of Financial Leverage is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 1.02
* Ranked among companies with meaningful Degree of Financial Leverage only.

UCP Degree of Financial Leverage Historical Data

The historical data trend for UCP'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.

UCP Degree of Financial Leverage Chart

UCP Annual Data
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UCP Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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Competitive Comparison of UCP's Degree of Financial Leverage

For the Residential Construction subindustry, UCP'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.


UCP's Degree of Financial Leverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, UCP's Degree of Financial Leverage distribution charts can be found below:

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



UCP Degree of Financial Leverage Calculation

UCP's Degree of Financial Leverage for the quarter that ended in Mar. 2017 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.28 (Mar. 2017) / 0.54 (Mar. 2016) - 1 )/( 12.296 (Mar. 2017) / 10.132 (Mar. 2016) - 1 )
=1.3704/0.2136
=6.42***

* 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.


UCP  (NYSE:UCP) 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.


UCP Degree of Financial Leverage Related Terms

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


UCP (UCP) Business Description

Traded in Other Exchanges
N/A
Address
UCP Inc was incorporated in the state of Delaware in May 2013. The Company is engaged in acquiring land, entitling and developing it for residential construction and selling residential lots to third-party homebuilders. It operates in two segments; homebuilding and land development. It competes with numerous national and regional homebuilding companies and with smaller local homebuilders and land developers for, among other things, home buyers, financing, desirable land parcels, raw materials and skilled management and labor resources. The Company is subject to numerous local, state, federal and other statutes, ordinances, rules and regulations.
Executives
Eric H. Speron director C/O PICO HOLDINGS, INC. 7979 IVANHOE AVE, SUITE 300 LA JOLLA CA 92037
Buckingham Capital Management Inc 10 percent owner 485 LEXINGTON AVENUE, 3RD FL, NEW YORK NY 10017
Dustin L. Bogue director, officer: PRESIDENT AND CEO UCP, INC., 99 ALMADEN BOULEVARD, SUITE 400, SAN JOSE CA 95113
Deno G Bokas officer: CHIEF ACCOUNTING OFFICER 1908 DOOLITTLE DRIVE, SAN LEANDRO CA 94577
John R Hart director, 10 percent owner 875 PROSPECT ST SUITE 301 LA JOLLA CA 92037
Webb Maxim C W director

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