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DoubleVerify Holdings (DoubleVerify Holdings) Degree of Financial Leverage : 1.05 (As of Dec. 2023)


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What is DoubleVerify Holdings 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). DoubleVerify Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 1.05. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

DV's Degree of Financial Leverage is ranked worse than
57.02% of 2627 companies
in the Software industry
Industry Median: 0.99 vs DV: 1.05

DoubleVerify Holdings Degree of Financial Leverage Historical Data

The historical data trend for DoubleVerify Holdings'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.

DoubleVerify Holdings Degree of Financial Leverage Chart

DoubleVerify Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial 0.92 0.27 1.70 0.32 1.05

DoubleVerify Holdings Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.32 0.27 -0.04 - 1.05

Competitive Comparison of DoubleVerify Holdings's Degree of Financial Leverage

For the Software - Application subindustry, DoubleVerify Holdings'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.


DoubleVerify Holdings's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, DoubleVerify Holdings's Degree of Financial Leverage distribution charts can be found below:

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



DoubleVerify Holdings Degree of Financial Leverage Calculation

DoubleVerify Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.41 (Dec. 2023) / 0.25 (Dec. 2022) - 1 )/( 96.943 (Dec. 2023) / 60.273 (Dec. 2022) - 1 )
=0.64/0.6084
=1.05***

* 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.


DoubleVerify Holdings  (NYSE:DV) 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.


DoubleVerify Holdings Degree of Financial Leverage Related Terms

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


DoubleVerify Holdings (DoubleVerify Holdings) Business Description

Traded in Other Exchanges
N/A
Address
462 Broadway, New York, NY, USA, 10013
DoubleVerify Holdings Inc is a digital media measurement and analytics software platform. The Authentic Ad ensures that a digital ad was delivered in a brand-safe setting, completely viewable, by a real individual, and in the expected geography, is one of its solutions. It generates revenues from its advertisement customers by charging a Measured Transaction Fee on the volume of Media Transactions Measured on the software platform.
Executives
Julie Eddleman officer: Global Chief Comm. Officer C/O DOUBLEVERIFY HOLDINGS, INC., 233 SPRING STREET, NEW YORK NY 10013
Nicola T Allais officer: Chief Financial Officer C/O DOUBLEVERIFY HOLDINGS, INC., 233 SPRING STREET, NEW YORK NY 10013
Laura Desmond director 345 PARK AVENUE, SAN JOSE CA 95110
Mark Zagorski director, officer: Chief Executive Officer C/O TREMOR VIDEO, INC., 1501 BROADWAY, SUITE 801, NEW YORK NY 10036
Providence Vii U.s. Holdings L.p. 10 percent owner C/O PROVIDENCE EQUITY PARTNERS, L.L.C., 50 KENNEDY PLAZA, 18TH FL, PROVIDENCE RI 02903
Robert Davis Noell director, 10 percent owner C/O STREAM GLOBAL SERVICES, INC., 20 WILLIAM STREET, SUITE 310, WELLESLEY MA 02481
Andrew E Grimmig officer: Chief Legal Officer C/O DOUBLEVERIFY HOLDINGS, INC., 233 SPRING STREET, NEW YORK NY 10013
Sundeep Jain director C/O DOUBLEVERIFY HOLDINGS, INC., 160 VARICK STREET, SUITE 03-120, NEW YORK NY 10013
Matthew F. Mclaughlin officer: Chief Operating Officer C/O DOUBLEVERIFY HOLDINGS, INC., 233 SPRING STREET, NEW YORK NY 10013
David James Blumberg 10 percent owner 432 BRYANT ST., SAN FRANCISCO CA 94107
Blumberg Capital Management Ii, L.l.c. 10 percent owner 432 BRYANT ST, SAN FRANCISCO CA 94107
Rosario C Perez director C/O DOUBLEVERIFY HOLDINGS, INC., 233 SPRING STREET, NEW YORK NY 10013
Scott Wagner director C/O WILSON SONSINI GOODRICH AND ROSATI, 650 PAGE MILL ROAD, PALO ALTO CA 94304
Karim A Tabet 10 percent owner C/O PROVIDENCE EQUITY PARTNERS, L.L.C., 50 KENNEDY PLAZA, 18TH FL, PROVIDENCE RI 02903
Andrew A Tisdale 10 percent owner C/O PROVIDENCE EQUITY PARTNERS, L.L.C., 50 KENNEDY PLAZA, 18TH FL, PROVIDENCE RI 02903