GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Big Yellow Group PLC (OTCPK:BYLOF) » Definitions » Degree of Financial Leverage

Big Yellow Group (Big Yellow Group) Degree of Financial Leverage : 1.07 (As of Sep. 2023)


View and export this data going back to 2007. Start your Free Trial

What is Big Yellow Group 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). Big Yellow Group's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 1.07. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BYLOF's Degree of Financial Leverage is ranked better than
52.51% of 678 companies
in the REITs industry
Industry Median: 1.09 vs BYLOF: 1.07

Big Yellow Group Degree of Financial Leverage Historical Data

The historical data trend for Big Yellow Group'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.

Big Yellow Group Degree of Financial Leverage Chart

Big Yellow Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.43 1.17 1.05 0.96 1.03

Big Yellow Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 1.15 0.96 3.98 1.03 1.07

Competitive Comparison of Big Yellow Group's Degree of Financial Leverage

For the REIT - Industrial subindustry, Big Yellow Group'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.


Big Yellow Group's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Big Yellow Group's Degree of Financial Leverage distribution charts can be found below:

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



Big Yellow Group Degree of Financial Leverage Calculation

Big Yellow Group's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 1.246 (Sep. 2023) / 3.233 (Sep. 2022) - 1 )/( 257.906 (Sep. 2023) / 607.93 (Sep. 2022) - 1 )
=-0.6146/-0.5758
=1.07***

* 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.


Big Yellow Group  (OTCPK:BYLOF) 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.


Big Yellow Group Degree of Financial Leverage Related Terms

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


Big Yellow Group (Big Yellow Group) Business Description

Industry
Traded in Other Exchanges
Address
Bridge Road, 2 The Deans, Bagshot, London, Surrey, GBR, GU19 5AT
Big Yellow Group PLC is a real estate investment trust that acquires, owns, and manages self-storage facilities throughout the United Kingdom. The company controls a real estate portfolio of storage properties operated mainly under the Big Yellow brand, with a smaller proportion also run under the lower-frills Armadillo Self Storage brand. Big Yellow's facilities are located across London and the Southeast region of the U.K. The company derives the vast majority of its revenue in the form of self-storage income from its locations in London and the South East. A substantial percentage also comes from sales of packing materials and insurance. Big Yellow's customers include individuals, retailers, professional service companies, hospitality firms, and wholesale merchants.

Big Yellow Group (Big Yellow Group) Headlines