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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). Quince Therapeutics's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.97. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Quince Therapeutics's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Quince Therapeutics'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.
Quince Therapeutics Annual Data | ||||||||||||||||
Trend | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 0.98 | 0.35 | 1.05 | 1.14 | 0.97 |
Quince Therapeutics 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 | 1.14 | 1.01 | 1.01 | 1.04 | 0.97 |
For the Biotechnology subindustry, Quince Therapeutics'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, Quince Therapeutics's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Quince Therapeutics's Degree of Financial Leverage falls into.
Quince Therapeutics'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 |
= | ( -0.84 (Dec. 2023) / -1.54 (Dec. 2022) - 1 ) | / | ( -27.142 (Dec. 2023) / -51.19 (Dec. 2022) - 1 ) | |
= | -0.4545 | / | -0.4698 | |
= | 0.97*** |
* 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.
Quince Therapeutics (NAS:QNCX) 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 Quince Therapeutics's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
David Lamond | director | C/O CORTEXYME, INC., 269 EAST GRAND AVE., SOUTH SAN FRANCISCO CA 94080 |
Guenter Janhofer | officer: Chief Scientific Officer | 601 GATEWAY BOULEVARD, SUITE 1250, SOUTH SAN FRANCISCO CA 94080 |
Luca Benatti | director | C/O INTERCEPT PHARMACEUTICALS, INC., 450 WEST 15TH STREET, SUITE 505, NEW YORK NY 10011 |
Charles S. Ryan | officer: President | C/O APPLIED DNA SCIENCES, INC., 50 HEALTH SCIENCES DRIVE, STONY BROOK NY 11790 |
Dirk Thye | director, officer: Chief Executive Officer | 6310 NANCY RIDGE DRIVE, SAN DIEGO CA 92121 |
Brendan Hannah | officer: Chief Business Officer | 269 EAST GRAND AVE, SOUTH SAN FRANCISCO CA 94080 |
Margaret Mcloughlin | director | C/O CORTEXYME, INC., 269 EAST GRAND AVE., SOUTH SAN FRANCISCO CA 94080 |
Ted Monohon | officer: Chief Accounting Officer | C/O FANTEX, INC., 330 TOWNSEND ST., SUITE 234, SAN FRANCISCO CA 94107 |
June Bray | director | C/O BIOXCEL THERAPEUTICS, INC., 555 LONG WHARF DRIVE, NEW HAVEN CT 06511 |
Caryn Gordon Mcdowell | officer: Chief Legal & Adm. Officer | 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080 |
Karen L. Smith | officer: Chief Medical Officer | C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2 |
Philip S Low | director | 3000 KENT AVE STE A1-100, WEST LAFAYETTE IN 47906 |
Marwan Sabbagh | director | C/O CORTEXYME, INC., 269 EAST GRAND AVE., SOUTH SAN FRANCISCO CA 94080 |
Stephen S. Dominy | director, officer: Chief Scientific Officer | C/O CORTEXYME, INC., 269 EAST GRAND AVE., SOUTH SAN FRANCISCO CA 94105 |
Christopher P. Lowe | officer: Chief Financial Officer | 2511 N LOOP 1604,, SUITE 204, SAN ANTONIO TX 78258 |
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