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ZUMZ (Zumiez) Degree of Financial Leverage : 0.94 (As of Jan. 2025)


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What is Zumiez 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). Zumiez's Degree of Financial Leverage for the quarter that ended in Jan. 2025 was 0.94. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

ZUMZ's Degree of Financial Leverage is ranked better than
57.55% of 1079 companies
in the Retail - Cyclical industry
Industry Median: 1.02 vs ZUMZ: 0.94

Zumiez Degree of Financial Leverage Historical Data

The historical data trend for Zumiez'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.

Zumiez Degree of Financial Leverage Chart

Zumiez Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.12 0.98 0.97 1.30 0.94

Zumiez 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 1.30 2.80 0.67 0.87 0.94

Competitive Comparison of Zumiez's Degree of Financial Leverage

For the Apparel Retail subindustry, Zumiez'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.


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

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

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


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Zumiez Degree of Financial Leverage Calculation

Zumiez'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
=( -0.09 (Jan. 2025) / -3.25 (Jan. 2024) - 1 )/( 1.95 (Jan. 2025) / -64.789 (Jan. 2024) - 1 )
=-0.9723/-1.0301
=0.94***

* 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.


Zumiez  (NAS:ZUMZ) 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.


Zumiez Degree of Financial Leverage Related Terms

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


Zumiez Business Description

Traded in Other Exchanges
Address
4001 204th Street SW, Lynnwood, WA, USA, 98036
Zumiez Inc is a United-States-based specialty retailer engaged in the sale of apparel, footwear, accessories, and hard goods. The company provides merchandise with cultural elements coming from fashion, music, art from action sports, streetwear, and other lifestyles. The company operates under the brands Zumiez, Fast Times, and Blue Tomato, and through both physical stores and websites. The majority of the company's stores are located in the U.S., with the rest in Canada, Australia, and Europe. The U.S. market contributes to the majority of the company's revenue.
Executives
Liliana Gil Valletta director 4001 204TH STREET SW, LYNNWOOD WA 98036
Carmen Bauza director 2400 WEST CENTRAL ROAD, HOFFMAN ESTATES IL 60192
Adam Christopher Ellis officer: President International 4001 204TH STREET SW, LYNNWOOD WA 98036
Guy Matthew Harkless director 4001 204TH STREET SW, LYNNWOOD WA 98036
James P. Murphy director 999 LAKE DRIVE, ISSAQUAH WA 98027
Richard Miles Brooks officer: President and CEO 6300 MERRILL CREEK PARKWAY, SUITE B, EVERETT WA 98203
Troy R. Brown officer: Ex. V.P. of E-commerce 4001 204TH STREET SW, LYNNWOOD WA 98036
Chris K. Visser officer: General Counsel & Corp. Sec. 4001 204TH STREET SW, LYNNWOOD WA 98036
Holmes Kalen director 2401 UTAH AVENUE SOUTH, SUITE 800, SEATTLE WA 98134
Thomas D Campion director, officer: Chairman of Board of Directors 6300 MERRILL CREEK PARKWAY, SUITE B, EVERETT WA 98203
Work Christopher Codington officer: Chief Financial Officer 4001 204TH STREET SW, LYNNWOOD WA 98036
Sarah Gaines Mccoy director 6300 MERRILL CREEK PARKWAY, SUITE B, EVERETT WA 98203-5862
Scott Andrew Bailey director 4001 204TH STREET SW, LYNNWOOD WA 98036
Matthew L Hyde director C/O REI, 6750 SOUTH 228TH ST., KENT WA 98032
Ernest R Johnson director

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