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JBG SMITH Properties (JBG SMITH Properties) Degree of Financial Leverage : 2.10 (As of Dec. 2023)


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What is JBG SMITH Properties 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). JBG SMITH Properties's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 2.10. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

JBGS's Degree of Financial Leverage is ranked worse than
84.96% of 678 companies
in the REITs industry
Industry Median: 1.055 vs JBGS: 2.10

JBG SMITH Properties Degree of Financial Leverage Historical Data

The historical data trend for JBG SMITH Properties'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.

JBG SMITH Properties Degree of Financial Leverage Chart

JBG SMITH Properties Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.54 1.84 0.34 0.23 2.10

JBG SMITH Properties Quarterly Data
Mar19 Jun19 Sep19 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 Premium Member Only Premium Member Only 0.23 - 2.31 2.99 2.10

Competitive Comparison of JBG SMITH Properties's Degree of Financial Leverage

For the REIT - Office subindustry, JBG SMITH Properties'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.


JBG SMITH Properties's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, JBG SMITH Properties's Degree of Financial Leverage distribution charts can be found below:

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



JBG SMITH Properties Degree of Financial Leverage Calculation

JBG SMITH Properties'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
=( -0.78 (Dec. 2023) / 0.7 (Dec. 2022) - 1 )/( -0.946 (Dec. 2023) / 178.699 (Dec. 2022) - 1 )
=-2.1143/-1.0053
=2.10***

* 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.


JBG SMITH Properties  (NYSE:JBGS) 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.


JBG SMITH Properties Degree of Financial Leverage Related Terms

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


JBG SMITH Properties (JBG SMITH Properties) Business Description

Industry
Traded in Other Exchanges
N/A
Address
4747 Bethesda Avenue, Suite 200, Bethesda, MD, USA, 20814
JBG SMITH Properties is a real estate investment trust based in the United States. It owns, operates, invests in and develops real estate assets concentrated in urban infill submarkets in and around Washington, DC. In addition, the company also provides fee-based real estate services to the legacy funds through its third-party real estate services business. The operating segments of the company are commercial, multifamily and third-party asset management and real estate services.
Executives
Angela Valdes officer: Chief Accounting Officer 1600 NE MIAMI GARDENS DRIVE, NORTH MIAMI BEACH FL 33179
Kevin Reynolds officer: Co-Chief Development Officer C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
Steven A Museles officer: Chief Legal Off. & Corp Secy
Madhumita Moina Banerjee officer: EVP, HEAD OF CAPITAL MARKETS C/O JBG SMITH PROPERTIES, 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
David Peter Paul officer: Pres. & Chief Operating Off. C/O JBG/OPERATING PARTNERS, 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
Robert Alexander Stewart director, officer: Executive Vice Chairman C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
George Laucks Xanders officer: Chief Investment Officer C/O JBG SMITH PROPERTIES, 4747 BETHESDA AVENUE, SUITE 200, BETHESDA MD 20814
Scott A Estes director WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
Alan S Forman director 55 WHITNEY AVENUE, 5TH FLOOR, NEW HAVEN CT 06511
Phyllis R Caldwell director AMERICAN CAPITAL, LTD., 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Charles E Haldeman director C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
Alisa Michelle Mall director C/O JBG SMITH PROPERTIES, 4747 BETHESDA AVENUE, SUITE 200, BETHESDA MD 20814
Michael J Glosserman director THE JBG COMPANIES, 4445 WILLARD AVENUE, 4TH FLOOR, CHEVY CHASE MD 20815
University Yale director YALE UNIVERSITY INVESTMENTS OFFICE, 55 WHITNEY AVENUE 5TH FLOOR, NEW HAVEN CT 06510-1300
James Lee Iker officer: Chief Investment Officer C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815

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