GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » InspireMD Inc (NAS:NSPR) » Definitions » Degree of Financial Leverage

InspireMD (InspireMD) Degree of Financial Leverage : -5.01 (As of Dec. 2023)


View and export this data going back to 1997. Start your Free Trial

What is InspireMD 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). InspireMD's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was -5.01. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

NSPR's Degree of Financial Leverage is ranked better than
97.48% of 834 companies
in the Medical Devices & Instruments industry
Industry Median: 0.98 vs NSPR: -5.01

InspireMD Degree of Financial Leverage Historical Data

The historical data trend for InspireMD'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.

InspireMD Degree of Financial Leverage Chart

InspireMD 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 -2.46 -15.72 -1.70 0.58 -5.01

InspireMD 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 0.58 0.59 -0.99 -2.28 -5.01

Competitive Comparison of InspireMD's Degree of Financial Leverage

For the Medical Devices subindustry, InspireMD'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.


InspireMD's Degree of Financial Leverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, InspireMD's Degree of Financial Leverage distribution charts can be found below:

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



InspireMD Degree of Financial Leverage Calculation

InspireMD'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
=( -0.82 (Dec. 2023) / -2.35 (Dec. 2022) - 1 )/( -21.143 (Dec. 2023) / -18.713 (Dec. 2022) - 1 )
=-0.6511/0.1299
=-5.01***

* 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.


InspireMD  (NAS:NSPR) 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.


InspireMD Degree of Financial Leverage Related Terms

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


InspireMD (InspireMD) Business Description

Traded in Other Exchanges
N/A
Address
4 Menorat Hamaor Street, Tel Aviv, ISR, 6744832
InspireMD Inc is a United States based medical device company. It is focused on the development and commercialization of proprietary MicroNet stent platform technology for the treatment of complex vascular and coronary disease. The products of the company are the CGuard carotid Embolic Prevention System (CGuard EPS) and the MGuard Prime Embolic Protection System (MGuard Prime EPS). It generates the majority of the revenue from the sales of CGuard EPS which combines MicroNet and a self-expandable nitinol stent in a single device for use in carotid artery applications. The group operates in Germany, Italy, Belarus, Brazil, and other countries.
Executives
Gary S Roubin director 4300 ROCKMORE RD JACKSON, WYOMING WY 83001
Patrick Verta officer: EVP Clinical/Medical Affairs 12988 VALLEY VIEW ROAD, EDEN PRAIRIE MN 55344
Michael Berman director 735 PALAMAR AVENUE, SUNNYVALE CA 94085
Thomas J Kester director C/O INSPIREMD, INC., 321 COLUMBUS AVENUE, BOSTON MA 02116
Paul Stuka director C/O OSIRIS PARTNERS, LLC, ONE LIBERTY SQUARE, 5TH FLOOR, BOSTON MA 02109
Andrea Tommasoli officer: Chief Operating Officer 22, RUE DE LA PLAGE, COLLONGES AU MONT D OR I0 69660
Shane Thomas Gleason officer: VP Global Marketing 18 NORTHAMPTON PL, COTO DE CAZA CA 92679
Kathryn Arnold director 1136 CHESTNUT AVE., WILMETTE IL 60091
Marvin Slosman director, officer: CEO and President 4 MENORAT HAMAOR ST., C/O INSPIREMD, INC., TEL AVIV L3 6744832
Isaac Blech director C/O INSPIREMD, INC., 321 COLUMBUS AVENUE, BOSTON MA 02116
Agustin V Gago officer: EVP, Chief Commercial Officer 256 JERUSALEM AVE, MASSAPEQUA NY 11758
Eric L. Olson officer: VP of Global Sales Operations C/O INSPIREMD, INC., 800 BOYLSTON STREET, 16TH FLOOR, BOSTON MA 02199
Campbell Rogers director C/O INSPIREMD, INC., 800 BOYLSTON STREET, SUITE 16041, BOSTON MA 02199
James J Barry director C/O INSPIREMD, INC., 4 MENORAT HAMAOR ST., TEL AVIV L3 6744832
Eyal Weinstein director C/O LEOREX LTD., P.O.B. 15067 MATAM, HAIFA L3 31905