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Xos (XOS) Degree of Financial Leverage : 2.26 (As of Mar. 2025)


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What is Xos 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). Xos's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 2.26. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

XOS's Degree of Financial Leverage is ranked worse than
84.88% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.11 vs XOS: 2.26

Xos Degree of Financial Leverage Historical Data

The historical data trend for Xos'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.

Xos Degree of Financial Leverage Chart

Xos Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
- -0.90 -2.76 0.11 1.67

Xos Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.46 0.97 1.18 1.67 2.26

Competitive Comparison of Xos's Degree of Financial Leverage

For the Farm & Heavy Construction Machinery subindustry, Xos'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.


Xos's Degree of Financial Leverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Xos's Degree of Financial Leverage distribution charts can be found below:

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


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Xos Degree of Financial Leverage Calculation

Xos's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -6.17 (Mar. 2025) / -10.67 (Mar. 2024) - 1 )/( -44.9 (Mar. 2025) / -55.179 (Mar. 2024) - 1 )
=-0.4217/-0.1863
=2.26***

* 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.


Xos  (NAS:XOS) 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.


Xos Degree of Financial Leverage Related Terms

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


Xos Business Description

Traded in Other Exchanges
Address
3550 Tyburn Street, Unit 100, Los Angeles, CA, USA, 90065
Xos Inc is a fleet electrification solutions provider committed to the decarbonization of commercial transportation. Xos designs and manufactures Classes 5 through 8 battery-electric commercial vehicles that travel on last-mile, back-to-base routes of up to 200 miles per day. Xos also offers charging infrastructure products and services through Xos Energy Solutions to support electric vehicle fleets. Its products include Stepvan, MDXT, HDXT, Xosphere, and Xos Energy Solutions.
Executives
Liana Pogosyan officer: Acting Chief Financial Officer C/O XOS, INC., 3550 TYBURN STREET, LOS ANGELES CA 90065
Christen T Romero officer: General Counsel 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Jose Castaneda officer: VP, Business Development 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
George N Mattson director C/O DELTA AIR LINES, INC., P.O. BOX 20574, DEPT. 981, ATLANTA GA 30320
Robert Ferber officer: Chief Technology Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Giordano Sordoni director, officer: Chief Operating Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Dakota Semler director, officer: Chief Executive Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Edward J Rapp director 100 NE ADAMS STREET, PEORIA IL 61629
Stuart N. Bernstein director C/O XOS, INC., 3550 TYBURN STREET, LOS ANGELES CA 90065
Anousheh Ansari director 10560 DR. MARTIN LUTHER KING JR. ST. N., ST. PETERSBURG, FL FL 33716
Alice K Jackson director 1800 LARIMER STREET, DENVER CO 80202
Burt Jordan director 4387 CHERRY HILL DRIVE, ORCHARD LAKE MI 48323
Kingsley Afemikhe officer: Chief Financial Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Aljomaih Automotive Co. 10 percent owner P.O. BOX 224, KING KHALID STREET, ALJOMAIH BUILDING, 1ST FLOOR, DAMMAM T0 31411
Emerald Green Trust 10 percent owner 3211 MULHOLLAND HIGHWAY, MALIBU CA 90265