GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Walmart Chile SA (XSGO:WMTCL) » Definitions » Degree of Financial Leverage

Walmart Chile (XSGO:WMTCL) Degree of Financial Leverage : 0.00 (As of Jun. 2016)


View and export this data going back to 1996. Start your Free Trial

What is Walmart Chile 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). Walmart Chile's Degree of Financial Leverage for the quarter that ended in Jun. 2016 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

XSGO:WMTCL's Degree of Financial Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.03
* Ranked among companies with meaningful Degree of Financial Leverage only.

Walmart Chile Degree of Financial Leverage Historical Data

The historical data trend for Walmart Chile'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.

Walmart Chile Degree of Financial Leverage Chart

Walmart Chile Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only - - - - -

Walmart Chile Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 - - - - -

Competitive Comparison of Walmart Chile's Degree of Financial Leverage

For the Department Stores subindustry, Walmart Chile'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.


Walmart Chile's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Walmart Chile's Degree of Financial Leverage distribution charts can be found below:

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



Walmart Chile Degree of Financial Leverage Calculation

Walmart Chile's Degree of Financial Leverage for the quarter that ended in Jun. 2016 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 57.15 (Jun. 2016) / 27.924 (Jun. 2015) - 1 )/( 225660.189 (Jun. 2016) / 176078.004 (Jun. 2015) - 1 )
=1.0466/0.2816
=3.72***

* 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.


Walmart Chile  (XSGO:WMTCL) 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.


Walmart Chile Degree of Financial Leverage Related Terms

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


Walmart Chile (XSGO:WMTCL) Business Description

Traded in Other Exchanges
N/A
Address
Av eduardo frei montalva 8301, Casilla, Santiago, CHL, 620
Walmart Chile SA is engaged in the operation of supermarkets. The company operates supermarkets under the brands lider, express lider, acuenta, ekono, central mayorista, and lider.cl. The firm also provides financial services which include offering financing to its customers through MasterCard and presto credit cards, requesting advances in cash, consumer loans, access to various products and services such as insurance, payment of accounts, and Real estate services which includes construction of new premises of the company and management of commercial premises that are part of company's supermarkets.

Walmart Chile (XSGO:WMTCL) Headlines

No Headlines