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Q.E.P. Co (Q.E.P. Co) Degree of Financial Leverage : 7.22 (As of Nov. 2023)


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What is Q.E.P. Co 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). Q.E.P. Co's Degree of Financial Leverage for the quarter that ended in Nov. 2023 was 7.22. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Q.E.P. Co's Degree of Financial Leverage or its related term are showing as below:

QEPC's Degree of Financial Leverage is ranked worse than
97.63% of 2916 companies
in the Industrial Products industry
Industry Median: 1.01 vs QEPC: 7.22

Q.E.P. Co Degree of Financial Leverage Historical Data

The historical data trend for Q.E.P. Co'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.

Q.E.P. Co Degree of Financial Leverage Chart

Q.E.P. Co Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.20 0.90 0.76 1.59 1.01

Q.E.P. Co Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
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 1.24 1.01 1.03 1.03 7.22

Competitive Comparison of Q.E.P. Co's Degree of Financial Leverage

For the Tools & Accessories subindustry, Q.E.P. Co'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.


Q.E.P. Co's Degree of Financial Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Q.E.P. Co's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Q.E.P. Co's Degree of Financial Leverage falls into.



Q.E.P. Co Degree of Financial Leverage Calculation

Q.E.P. Co's Degree of Financial Leverage for the quarter that ended in Nov. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -1.22 (Nov. 2023) / 0.78 (Nov. 2022) - 1 )/( 3.788 (Nov. 2023) / 5.873 (Nov. 2022) - 1 )
=-2.5641/-0.355
=7.22***

* 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.


Q.E.P. Co  (OTCPK:QEPC) 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.


Q.E.P. Co Degree of Financial Leverage Related Terms

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


Q.E.P. Co (Q.E.P. Co) Business Description

Traded in Other Exchanges
N/A
Address
1001 Broken Sound Parkway North West, Suite A, Boca Raton, FL, USA, 33487
Q.E.P. Co Inc is a provider of flooring and industrial solutions. The company is a manufacturer, marketer, and distributor of hardwood and laminate flooring, flooring installation tools, adhesives and flooring related products targeted for the professional installer as well as the do-it-yourselfer. It also provides industrial tools to the industrial trades under brand names including QEP, ROBERTS, Capitol, Harris Wood, Fausfloor, Vitrex, Homelux, TileRite, PRCI, Nupla, HISCO, Plasplugs, Ludell, Porta-Nails, Tomecanic, Benetiere, and Elastiment. The company sells its products to home improvement retail centers, specialty distribution outlets, municipalities and industrial solution providers in an approx 50 states and throughout the world.
Executives
Lawrence P Levine officer: SVP and General Counsel 1001 BROKEN SOUND PARKWAY NW, SUITE A, BOCA RATON FL 33487
Robert G Walters director 1001 BROKEN SOUND PARKWAY NW SUITE A, BOCA RATON FL 33487
Kenneth Weiss officer: SVP Commercial Sales 1001 BROKEN SOUND PARKWAY NW SUITE A, BOCA RATON FL 33487
David L Kreilein director 2930 INDUSTRIEAL ST, WISCONSIN RAPIDS WI 54495-8020
Muir Robert W Jr director
Laura M Holm director C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
James Brower officer: Chief Operating Officer C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
Jamie Clingan officer: Vice President Marketing C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
Bruce Maclaren officer: Chief Executive Officer Europe C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
S Scott Fitzpatrick officer: Chief Accounting Officer C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
Stuart F Fleischer officer: Chief Financial Officer
Randall Paulfus officer: Interim CFO C/O PC UNIVERSE, INC., 504 NW 77TH STREET, BOCA RATON FL 33487
Richard A Brooke officer: Senior Vice President C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, BOCA RATON FL 33487
Eric Demaree officer: EVP, Sales C/O Q.E.P. CO., INC., 1081 HOLLAND DRIVE, BOCA RATON FL 33487
Susan J Gould 10 percent owner

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