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Liberty Energy (Liberty Energy) Degree of Financial Leverage : -9.75 (As of Mar. 2024)


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What is Liberty Energy 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). Liberty Energy's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was -9.75. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

LBRT's Degree of Financial Leverage is ranked better than
97.9% of 1000 companies
in the Oil & Gas industry
Industry Median: 1 vs LBRT: -9.75

Liberty Energy Degree of Financial Leverage Historical Data

The historical data trend for Liberty Energy'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.

Liberty Energy Degree of Financial Leverage Chart

Liberty Energy Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only 1.04 1.25 2.87 0.85 0.61

Liberty Energy Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.72 -10.70 0.91 0.61 -9.75

Competitive Comparison of Liberty Energy's Degree of Financial Leverage

For the Oil & Gas Equipment & Services subindustry, Liberty Energy'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.


Liberty Energy's Degree of Financial Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Liberty Energy's Degree of Financial Leverage distribution charts can be found below:

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



Liberty Energy Degree of Financial Leverage Calculation

Liberty Energy's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 2.74 (Mar. 2024) / 3.05 (Mar. 2023) - 1 )/( 654.801 (Mar. 2024) / 648.043 (Mar. 2023) - 1 )
=-0.1016/0.0104
=-9.75***

* 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.


Liberty Energy  (NYSE:LBRT) 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.


Liberty Energy Degree of Financial Leverage Related Terms

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


Liberty Energy (Liberty Energy) Business Description

Industry
Traded in Other Exchanges
N/A
Address
950 17th Street, Suite 2400, Denver, CO, USA, 80202
Liberty Energy is an oilfield services company that provides hydraulic fracturing services—mainly pressure pumping—in major basins throughout North America. Its 2020 acquisition of Schlumberger's OneStim business segment made Liberty one of the largest pressure pumpers in North America. It also added wireline operations, two Permian frac sand mines, and an expanded technological portfolio.
Executives
Christopher A Wright director, officer: Chief Executive Officer 106 ALTA VISTA AVENUE, MILL VALLEY CA 94941
R Sean Elliott officer: See Remarks 6565 MACARTHUR BLVD, SUITE 1050, IRVING TX 75039
Ron Gusek officer: President 950 17TH STREET, SUITE 2000, DENVER CO 80202
Ken Babcock director 950 17TH STREET, SUITE 2000, DENVER CO 80202
Ryan T Gosney officer: Chief Accounting Officer 950 17TH STREET, SUITE 2000, DENVER CO 80202
Michael Stock officer: Chief Financial Officer 950 17TH STREET, SUITE 2000, DENVER CO 80202
Limited/nv Schlumberger 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Audrey Robertson director BONANZA CREEK ENERGY, INC., 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Riverstone/carlyle Energy Partners Iv, L.p. director, 10 percent owner C/O RIVERSTONE HOLDINGS LLC, 712 FIFTH AVENUE, 36TH FLOOR, NEW YORK NY 10019
Simon Ayat director C/O SCHLUMBERGER LIMITED, 5999 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
James R Mcdonald director 13126 CONIFER RD, HOUSTON TX 77079
B.v. Schlumberger 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Schlumberger Holdings Corp 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Schlumberger Technology Corp 10 percent owner 300 SCHLUMBERGER DRIVE, MD 23, SUGAR LAND TX 77478
Brett Staffieri director 950 17TH STREET, SUITE 2000, DENVER CO 80202