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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Molecular Templates's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.99. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Molecular Templates's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Molecular Templates'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.
Molecular Templates Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 0.62 | 0.35 | 1.39 | 0.93 | 0.99 |
Molecular Templates 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 | 0.93 | 0.89 | 0.92 | 0.97 | 0.99 |
For the Biotechnology subindustry, Molecular Templates'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.
For the Biotechnology industry and Healthcare sector, Molecular Templates's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Molecular Templates's Degree of Financial Leverage falls into.
Molecular Templates'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 |
= | ( -1.8 (Dec. 2023) / -24.69 (Dec. 2022) - 1 ) | / | ( -5.481 (Dec. 2023) / -87.949 (Dec. 2022) - 1 ) | |
= | -0.9271 | / | -0.9377 | |
= | 0.99*** |
* 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.
Molecular Templates (NAS:MTEM) 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.
Thank you for viewing the detailed overview of Molecular Templates's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Maurizio Voi | officer: Chief Medical Officer | 4 MAGUIRE ROAD, LEXINGTON MA 02421 |
Biotech Target N V | 10 percent owner | ARA HILL TOP BUILDING, UNIT A-5, PLETTERIJWEG OOST 1, CURACAO, WILLEMSTAD P8 000000 |
Sean Mclennan | officer: CFO & Treasurer | C/O MOLECULAR TEMPLATES, INC., 93010 AMBERGLEN BLVD., SUITE 100, AUSTIN TX 78729 |
Kevin M. Lalande | director, 10 percent owner | 201 WEST 5TH STREET, AUSTIN TX 78701 |
Shv Management Services, Llc | 10 percent owner | FROST TOWER, 401 CONGRESS AVENUE, SUITE 2950, AUSTIN TX 78701 |
Gabriela Gruia | director | C/O TSCAN THERAPEUTICS, INC., 830 WINTER STREET, WALTHAM MA 02451 |
Jason S. Kim | officer: See Remarks | 9301 AMBERGLEN BOULEVARD, SUITE 100, C/O MOLECULAR TEMPLATES, INC., AUSTIN TX 78729 |
Biotech Ag Bb | 10 percent owner | SCHWERTSTRASSE 6, SCHAFFHAUSEN V8 8200 |
Longitude Capital Partners Iii, Llc | 10 percent owner | 800 EL CAMINO, SUITE 220, MENLO PARK CA 94025 |
Sanders Corazon (corsee) D. | director | C/O MOLECULAR TEMPLATES, INC., 9301 AMBERGLEN BLVD, SUITE 100, AUSTIN VI 78729 |
Patrick G Enright | 10 percent owner | CO LONGITUDE CAPITAL PARTNERS LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025 |
Bakker Juliet Tammenoms | 10 percent owner | LONGITUDE CAPITAL MANAGEMENT CO., LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025 |
David Hirsch | director, 10 percent owner | C/O LONGITUDE CAPITAL PARTNERS, LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025 |
Longitude Venture Partners Iii, L.p. | 10 percent owner | 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025 |
Scott D Morenstein | director | C/O CAXTON ALTERNATIVE MANAGEMENT LP, 1330 SIXTH AVENUE, 20TH FLOOR, NEW YORK NY 10019 |
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