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Whole Foods Market (Whole Foods Market) Degree of Financial Leverage : 0.00 (As of Jun. 2017)


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

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

WFM's Degree of Financial Leverage is not ranked *
in the Retail - Defensive industry.
Industry Median: 1.02
* Ranked among companies with meaningful Degree of Financial Leverage only.

Whole Foods Market Degree of Financial Leverage Historical Data

The historical data trend for Whole Foods Market'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.

Whole Foods Market Degree of Financial Leverage Chart

Whole Foods Market Annual Data
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Degree of Financial Leverage
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Whole Foods Market Quarterly Data
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Competitive Comparison of Whole Foods Market's Degree of Financial Leverage

For the Grocery Stores subindustry, Whole Foods Market'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.


Whole Foods Market's Degree of Financial Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Whole Foods Market's Degree of Financial Leverage distribution charts can be found below:

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



Whole Foods Market Degree of Financial Leverage Calculation

Whole Foods Market's Degree of Financial Leverage for the quarter that ended in Jun. 2017 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.22 (Jun. 2017) / 1.43 (Jun. 2016) - 1 )/( 686 (Jun. 2017) / 786 (Jun. 2016) - 1 )
=-0.1469/-0.1272
=1.15***

* 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.


Whole Foods Market  (NAS:WFM) 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.


Whole Foods Market Degree of Financial Leverage Related Terms

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Whole Foods Market (Whole Foods Market) Business Description

Traded in Other Exchanges
N/A
Address
Whole Foods Market is the world's leading retailer of natural and organic foods by units and is the first certified organic grocer in the United States. Whole Foods' only operating segment consists of natural and organic foods supermarkets. As of fiscal 2016, the company had 456 stores in the United States, Canada, and the United Kingdom. The average store size is about 39,000 square feet. About 15% of the company's sales were derived from the sale of private-label products. The company announced a pending acquisition by Amazon in June 2017.
Executives
Scott F Powers director STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111
Sharon Mccollam director C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563
Ken C Hicks director 150 N. ORANGE GROVE BLVD, PASADENA CA 91103
Mary Ellen Coe director 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Gabrielle Sulzberger director 450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017
Glenda J Flanagan officer: Executive Vice President 550 BOWIE STREET, AUSTIN TX 78703
Joseph D Mansueto director C/O MORNINGSTAR, INC., 225 WEST WACKER DRIVE, CHICAGO IL 60606
Robb Walter E Iv director 550 BOWIE STREET, AUSTIN TX 78703
Ralph Z Sorenson director WHOLE FOODS MARKET, INC. 550 BOWIE STREET AUSTIN TX 78703
William A Tindell director 500 FREEPORT PARKWAY, COPPELL TX 75019
Green Equity Investors V, L.p. other: See General Remarks. 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Gei Capital V, Llc other: See General Remarks. 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green Equity Investors Side V, L.p. other: See General Remarks. 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green V Holdings, Llc other: See General Remarks. 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Lgp Management Inc other: See General Remarks. 11111 SANTA MONICA BLVD, STE 2000, LOS ANGELES CA 90025

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