Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Cornerstone Building Brands's Degree of Financial Leverage for the quarter that ended in Mar. 2022 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Cornerstone Building Brands's Degree of Financial Leverage or its related term are showing as below:
CNR's Degree of Financial Leverage is not ranked *
in the Construction industry.
Industry Median: 0.98 * Ranked among companies with meaningful Degree of Financial Leverage only.
Cornerstone Building Brands Degree of Financial Leverage Historical Data
The historical data trend for Cornerstone Building Brands'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.
Cornerstone Building Brands Annual Data
Trend
Oct12
Oct13
Oct14
Oct15
Oct16
Oct17
Oct18
Dec19
Dec20
Dec21
Degree of Financial Leverage
-
-
-
-
-
Cornerstone Building Brands Quarterly Data
Apr17
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Degree of Financial Leverage
-
-
-
-
-
Competitive Comparison
For the Building Products & Equipment subindustry, Cornerstone Building Brands'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.
Cornerstone Building Brands Degree of Financial Leverage Distribution
For the Construction industry and Industrials sector, Cornerstone Building Brands's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Cornerstone Building Brands's Degree of Financial Leverage falls into.
Cornerstone Building Brands Degree of Financial Leverage Calculation
Cornerstone Building Brands's Degree of Financial Leverage for the quarter that ended in Mar. 2022 is calculated as:
* 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.
Cornerstone Building Brands (NYSE:CNR) 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.
Cornerstone Building Brands Degree of Financial Leverage Related Terms
Thank you for viewing the detailed overview of Cornerstone Building Brands's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Cornerstone Building Brands (NYSE:CNR) Business Description
Cornerstone Building Brands Inc constructs and sells building materials for the commercial, residential, and repair industries in North America. The company operates in three segments: commercial, which provides metal products and coil coating services for commercial construction; siding, which offers vinyl and steel siding, aluminum coil and gutters, roofing accessories, moldings, window and door trim, rain removal systems, vents, fences, and railings; and windows, which includes vinyl, aluminum, and wooden windows as well as steel, wood, and fiberglass doors. All three segments contribute sizably to total revenue.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
0(0%) 9:42AM EST
Email Alerts
Stock PDF
RSS
Website
Filings
Download
Manual of Stocks™ Web APP
CNR has been successfully added to your 