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Uranium Energy (XTER:U6Z) Degree of Financial Leverage : 0.97 (As of Jan. 2025)


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What is Uranium Energy 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). Uranium Energy's Degree of Financial Leverage for the quarter that ended in Jan. 2025 was 0.97. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

XTER:U6Z's Degree of Financial Leverage is ranked better than
56.98% of 172 companies
in the Other Energy Sources industry
Industry Median: 1.04 vs XTER:U6Z: 0.97

Uranium Energy Degree of Financial Leverage Historical Data

The historical data trend for Uranium Energy'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.

Uranium Energy Degree of Financial Leverage Chart

Uranium Energy Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.01 - 0.81 1.19 0.26

Uranium Energy Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 0.93 0.39 0.26 0.60 0.97

Competitive Comparison of Uranium Energy's Degree of Financial Leverage

For the Uranium subindustry, Uranium Energy'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.


Uranium Energy's Degree of Financial Leverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Uranium Energy's Degree of Financial Leverage distribution charts can be found below:

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


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Uranium Energy Degree of Financial Leverage Calculation

Uranium Energy's Degree of Financial Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.14 (Jan. 2025) / -0.009 (Jan. 2024) - 1 )/( -65.296 (Jan. 2025) / -4.108 (Jan. 2024) - 1 )
=14.5556/14.8948
=0.98***

* 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.


Uranium Energy  (XTER:U6Z) 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.


Uranium Energy Degree of Financial Leverage Related Terms

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Uranium Energy Business Description

Address
500 North Shoreline Boulevard, Suite 800, Corpus Christi, TX, USA, 78401
Uranium Energy Corp is engaged in uranium mining and related activities. The company is working towards fueling the demand for carbon-free nuclear energy, a key solution to climate change, and energy source for the low-carbon future. The company is advancing its next generation of low-cost, environmentally friendly, in-situ recovery (ISR) mining uranium projects. The company has two extraction-ready ISR hub and spoke platforms in South Texas and Wyoming. UEC also has seven U.S. ISR uranium projects with all of their permits in place, with additional diversified holdings of uranium assets across the U.S., Canada and Paraguay.

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