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Pebblebrook Hotel Trust (Pebblebrook Hotel Trust) Degree of Financial Leverage : -2.49 (As of Mar. 2024)


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What is Pebblebrook Hotel Trust 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). Pebblebrook Hotel Trust's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was -2.49. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

PEB's Degree of Financial Leverage is ranked better than
93.07% of 678 companies
in the REITs industry
Industry Median: 1.09 vs PEB: -2.49

Pebblebrook Hotel Trust Degree of Financial Leverage Historical Data

The historical data trend for Pebblebrook Hotel Trust'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.

Pebblebrook Hotel Trust Degree of Financial Leverage Chart

Pebblebrook Hotel Trust 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 0.53 2.62 0.67 0.47 -

Pebblebrook Hotel Trust 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 0.38 0.28 - - -2.49

Competitive Comparison of Pebblebrook Hotel Trust's Degree of Financial Leverage

For the REIT - Hotel & Motel subindustry, Pebblebrook Hotel Trust'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.


Pebblebrook Hotel Trust's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Pebblebrook Hotel Trust's Degree of Financial Leverage distribution charts can be found below:

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



Pebblebrook Hotel Trust Degree of Financial Leverage Calculation

Pebblebrook Hotel Trust'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
=( -1.02 (Mar. 2024) / -0.39 (Mar. 2023) - 1 )/( 28.873 (Mar. 2024) / 82.282 (Mar. 2023) - 1 )
=1.6154/-0.6491
=-2.49***

* 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.


Pebblebrook Hotel Trust  (NYSE:PEB) 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.


Pebblebrook Hotel Trust Degree of Financial Leverage Related Terms

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


Pebblebrook Hotel Trust (Pebblebrook Hotel Trust) Business Description

Industry
Traded in Other Exchanges
Address
4747 Bethesda Avenue, Suite 1100, Bethesda, MD, USA, 20814
Pebblebrook Hotel Trust currently owns upper-upscale and luxury hotels with 12,134 rooms across 47 hotels in the United States. Pebblebrook acquired LaSalle Hotel Properties, which owned 10,451 rooms across 41 U.S. hotels, in December 2018, though management has sold many of those hotels over the past few years. Pebblebrook's portfolio consists mostly of independent hotels with no brand affiliations, though the combined company does own and operate some hotels under Marriott, Starwood, InterContinental, Hilton, and Hyatt brands.
Executives
Jon E Bortz director, 10 percent owner, officer: Chairman, President and CEO 4747 BETHESDA AVENUE, SUITE 1100, BETHESDA MD 20814
Phillip M. Miller director 2 BETHESDA METRO CENTER, SUITE 1530, BETHESDA MD 20814
Raymond D Martz officer: Executive VP, and CFO 4747 BETHESDA AVENUE, SUITE 1100, BETHESDA MD 20814
Thomas Charles Fisher officer: CIO 4747 BETHESDA AVENUE, SUITE 1100, BETHESDA MD 20814
Bonny W Simi director 4747 BETHESDA AVENUE, SUITE 1100, BETHESDA MD 20814
Cydney Donnell director MAYS BUSINESS SCHOOL AT TEXAS A&M UNIV, DEPARTMENT OF FINANCE, 306 WEHNER BLDG, COLLEGE STATION TX 77843-4218
Ron E. Jackson director 10319 WESTLAKE DRIVE, SUITE 112, BETHESDA MD 20817
Michael J Schall director C/O ESSEX PROPERTY TRUST, 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Martin H. Nesbitt director 10319 WESTLAKE DRIVE, SUITE 112, BETHESDA MD 20817
Laura Wright director 2702 LOVE FIELD DRIVE, P.O. BOX 36611, DALLAS TX 75235-1611
Earl E Webb director AVISON YOUNG, 400 SKOKIE BLVD., SUITE 825, NORTHBROOK IL 60062