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Party City Holdco (Party City Holdco) Degree of Financial Leverage : 0.00 (As of Sep. 2022)


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What is Party City Holdco 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). Party City Holdco's Degree of Financial Leverage for the quarter that ended in Sep. 2022 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

PRTYQ's Degree of Financial Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.05
* Ranked among companies with meaningful Degree of Financial Leverage only.

Party City Holdco Degree of Financial Leverage Historical Data

The historical data trend for Party City Holdco'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.

Party City Holdco Degree of Financial Leverage Chart

Party City Holdco Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -412.76 10.27 2.14 0.05 0.87

Party City Holdco Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 0.94 0.87 0.01 0.37 0.42

Competitive Comparison of Party City Holdco's Degree of Financial Leverage

For the Specialty Retail subindustry, Party City Holdco'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.


Party City Holdco's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Party City Holdco's Degree of Financial Leverage distribution charts can be found below:

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



Party City Holdco Degree of Financial Leverage Calculation

Party City Holdco's Degree of Financial Leverage for the quarter that ended in Sep. 2022 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -2.28 (Sep. 2022) / -0.77 (Sep. 2021) - 1 )/( -156.487 (Sep. 2022) / -27.405 (Sep. 2021) - 1 )
=1.961/4.7102
=0.42***

* 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.


Party City Holdco  (OTCPK:PRTYQ) 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.


Party City Holdco Degree of Financial Leverage Related Terms

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


Party City Holdco (Party City Holdco) Business Description

Traded in Other Exchanges
N/A
Address
80 Grasslands Road, Elmsford, NY, USA, 10523
Party City Holdco Inc is a party goods retailer in North America that operates owned and franchised locations in the us, Canada, and Puerto Rico. Party City also sells internationally in countries like the UK, France, Germany, and Australia, among others. The company has two primary reporting segments: retail and wholesale. The retail operations sell through Anagram, Amscan, Designware, Costumes USA, and other party suppliers, such as Party City, Halloween City, and PartyCity.com. The wholesale segment sells party goods such as paper and plastic tableware, accessories and novelties, balloons, stationery, and gift items for all occasions. These products are sold by franchise stores, mass merchants, independent card and gift shops, dollar stores, and other retailers and global distributors.
Executives
Clifford Sosin 10 percent owner 8 WRIGHT STREET, 1ST FL, WESTPORT CT 06880
John Capela officer: See Remarks 779 HIGHLAND AVENUE, PARAMUS NJ 07652
Peter Royer Smith officer: Chief Operations Officer 3438 PEACHTREE ROAD NE, SUITE 1800, ATLANTA GA 30326
De Mesa Graziano Cheryl officer: Chief Accounting Officer 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Steven J Collins director 29 VINTON STREET, #5, BOSTON MA 02127
William S. Creekmuir director SIX CONCOURSE PARKWAY, SUITE 3300-A, ATLANTA GA 30328
John Frascotti director C/O HASBRO, INC. 1011 NEWPORT AVENUE, PAWTUCKET RI 02862
Shroff Michelle Millstone director C/O PARTY CITY HOLDCO INC., 80 GRASSLANDS ROAD, ELMSFORD NY 10523
James M Harrison director GOLDMAN, SACHS & CO., 85 BROAD ST, NEW YORK NY 10004
Reginald Rasch officer: See Remarks 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Sean Thompson officer: See Remarks 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Sarah Dodds-brown director 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Jennifer Fleiss director 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Joel Alsfine director 2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Norman S Matthews director 650 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10022

Party City Holdco (Party City Holdco) Headlines

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