VIPR (VIPV) Degree of Financial Leverage : 0.00 (As of Sep. 2010)

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What is VIPR Degree of Financial Leverage?

VIPR VIPV -96.67% Degree of Financial Leverage is 0.00 as of Sep. 2010.

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). VIPR's Degree of Financial Leverage for the quarter that ended in Sep. 2010 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

VIPV's Degree of Financial Leverage is not ranked *
in the Media - Diversified industry.
Industry Median: 0.96
* Ranked among companies with meaningful Degree of Financial Leverage only.

VIPR  (OTCPK:VIPV) 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.


VIPR Degree of Financial Leverage Related Terms


VIPR Degree of Financial Leverage Historical Data

* Premium members only.

The historical data trend for VIPR'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.

VIPR Degree of Financial Leverage Chart

VIPR Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Degree of Financial Leverage
Get a 7-Day Free Trial 0.00 0.00 0.00 0.00 0.00

VIPR Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 0.00 0.00 0.00 0.00 0.00

VIPV vs LOGX, KNIT: Degree of Financial Leverage Comparison

For the Advertising Agencies subindustry, VIPR'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.


VIPR Degree of Financial Leverage vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, VIPR's Degree of Financial Leverage distribution charts can be found below:

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



VIPR Degree of Financial Leverage Calculation

VIPR's Degree of Financial Leverage for the quarter that ended in Sep. 2010 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -3 (Sep. 2010) / 0 (Sep. 2009) - 1 )/( -1.005 (Sep. 2010) / -0.55 (Sep. 2009) - 1 )
=/0.8273
=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.

What does a Degree of Financial Leverage of 0.00 mean?
VIPR (VIPV) has a Degree of Financial Leverage of 0.00 as of Sep. 2010. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for VIPR and its competitors.
Is VIPR's Degree of Financial Leverage too high?
VIPR's current Degree of Financial Leverage is 0.00.
How does VIPR's Degree of Financial Leverage compare to LOGX and KNIT?
VIPR's Degree of Financial Leverage of 0.00 can be compared against companies in the Media - Diversified industry. The industry median Degree of Financial Leverage is 0.96. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Media - Diversified company?
The median Degree of Financial Leverage among Media - Diversified companies is 0.96, based on 982 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for VIPR and its competitors. For the Media - Diversified industry, the median Degree of Financial Leverage is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VIPR's current Degree of Financial Leverage is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VIPR stock overvalued right now?
VIPR (VIPV) has a current Degree of Financial Leverage of 0.00. The current Degree of Financial Leverage is 0.00. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For VIPR (VIPV), the current Degree of Financial Leverage is 0.00 as of Sep. 2010. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

VIPR Business Description

Address 5376 Walter Place, Burnaby, BC, CAN, V5G 4K2
VIPR Corp is engaged in the acquisition, development and marketing of businesses and their products for personal consumption, apparel and home use. Its objective is to locate, acquire and develop opportunities within the personal consumption, apparel and home markets.