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Destination XL Group (Destination XL Group) Degree of Financial Leverage : 2.42 (As of Jan. 2024)


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What is Destination XL 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). Destination XL Group's Degree of Financial Leverage for the quarter that ended in Jan. 2024 was 2.42. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

DXLG's Degree of Financial Leverage is ranked worse than
88.81% of 1072 companies
in the Retail - Cyclical industry
Industry Median: 1.05 vs DXLG: 2.42

Destination XL Group Degree of Financial Leverage Historical Data

The historical data trend for Destination XL 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.

Destination XL Group Degree of Financial Leverage Chart

Destination XL Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.76 0.54 0.84 -29.71 2.42

Destination XL Group Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 -29.71 -2.33 3.81 2.77 2.42

Competitive Comparison of Destination XL Group's Degree of Financial Leverage

For the Apparel Retail subindustry, Destination XL 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.


Destination XL Group's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

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

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



Destination XL Group Degree of Financial Leverage Calculation

Destination XL Group's Degree of Financial Leverage for the quarter that ended in Jan. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.43 (Jan. 2024) / 1.33 (Jan. 2023) - 1 )/( 42.06 (Jan. 2024) / 58.427 (Jan. 2023) - 1 )
=-0.6767/-0.2801
=2.42***

* 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.


Destination XL Group  (NAS:DXLG) 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.


Destination XL Group Degree of Financial Leverage Related Terms

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


Destination XL Group (Destination XL Group) Business Description

Traded in Other Exchanges
N/A
Address
555 Turnpike Street, Canton, MA, USA, 02021
Destination XL Group Inc is a retailer of branded and designer men's clothing and footwear in the United States. The company sells shirts, outerwear, suits, sleepwear, footwear and other accessories through branded stores like Polo, Reebok, Oak Hill, Robert Graham, Lacoste, Levi's and True Nation. It also sells products across the world.
Executives
Robert S Molloy officer: Vice President,General Counsel C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Jack Boyle director C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Awm Investment Company, Inc. 10 percent owner 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Anthony Gaeta officer: SVP, Store Sales & Operations 555 TURNPIKE STREET, CANTON MA 02021
Allison Surette officer: SVP, GMM C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Dara Pauker officer: Chief Operating Officer C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
John F Cooney officer: Chief Accounting Officer C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Stacey Jones officer: Chief Human Resources Officer C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Ivy Ross director C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Francis C Chane officer: VP, Distribution & Logistics C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Stratton Peter H Jr. officer: SVP Finance,Controller,CAO C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Ujjwal Dhoot officer: Chief Digital Officer C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
James Reath officer: Chief Marketing Officer C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Carmen Bauza director 2400 WEST CENTRAL ROAD, HOFFMAN ESTATES IL 60192
Willem Mesdag director C/O RED MOUNTAIN CAPITAL MANAGEMENT INC., 10100 SANTA MONICA BOULEVARD, SUITE 925, LOS ANGELES CA 90067