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VST (Vistra) Degree of Financial Leverage : 2.42 (As of Mar. 2025)


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What is Vistra 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). Vistra's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 2.42. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

VST's Degree of Financial Leverage is ranked worse than
81.82% of 418 companies
in the Utilities - Independent Power Producers industry
Industry Median: 1.05 vs VST: 2.42

Vistra Degree of Financial Leverage Historical Data

The historical data trend for Vistra'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.

Vistra Degree of Financial Leverage Chart

Vistra Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.16 1.58 -0.93 0.58 1.48

Vistra Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -0.57 2.22 1.09 1.48 2.42

Competitive Comparison of Vistra's Degree of Financial Leverage

For the Utilities - Independent Power Producers subindustry, Vistra'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.


Vistra's Degree of Financial Leverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Vistra's Degree of Financial Leverage distribution charts can be found below:

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


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Vistra Degree of Financial Leverage Calculation

Vistra's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 6.36 (Mar. 2025) / 1.63 (Mar. 2024) - 1 )/( 3931 (Mar. 2025) / 1789 (Mar. 2024) - 1 )
=2.9018/1.1973
=2.42***

* 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.


Vistra  (NYSE:VST) 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.


Vistra Degree of Financial Leverage Related Terms

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


Vistra Business Description

Traded in Other Exchanges
Address
6555 Sierra Drive, Irving, TX, USA, 75039
Vistra Energy is one of the largest power producers and retail energy providers in the US. Following the 2024 Energy Harbor acquisition, Vistra owns 41 gigawatts of nuclear, coal, natural gas, solar, and energy storage assets. Its retail electricity business serves 5 million customers in 20 states, including almost a third of all Texas electricity consumers. Vistra emerged from the Energy Future Holdings bankruptcy as a stand-alone entity in 2016. It acquired Dynegy in 2018.
Executives
Kristopher E. Moldovan officer: EVP and CFO 6555 SIERRA DRIVE, IRVING TX 75039
Stephanie Zapata Moore officer: See Remarks C/O VISTRA ENERGY CORP., 1601 BRYAN STREET, DALLAS TX 75201
Scott A Hudson officer: SVP and President Retail C/O VISTRA ENERGY CORP., 6555 SIERRA DRIVE, IRVING TX 75039
Scott B Helm director C/O VISTRA ENERGY CORP., 1601 BRYAN STREET, DALLAS TX 75201
Carrie Lee Kirby officer: See Remarks C/O VISTRA ENERGY CORP., 1601 BRYAN STREET, DALLAS TX 75201
Paul M Barbas director C/O DPL INC., 1065 WOODMAN DRIVE, DAYTON OH 45432
Stephen J Muscato officer: SVP & Chief Commercial Officer C/O VISTRA ENERGY CORP., 6555 SIERRA DRIVE, IRVING TX 75039
Lisa Crutchfield director 6 LIBERTY LANE WEST, HAMPTON NH 03842
Julie A. Lagacy director C/O RPM INTERNATIONAL INC., 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
James A Burke officer: See Remarks 24 GREENWAY PLAZA, SUITE 1946, HOUSTON TX 77046
Brookfield Asset Management Inc. 10 percent owner, other: Director by Deputization BROOKFIELD PLACE, 181 BAY ST, STE 100, PO BOX 762, TORONTO A6 M5J2T3
Stacey H Dore officer: EVP & Chief Strategy Officer 1807 ROSS AVE, 4TH FLOOR, DALLAS TX 75201
Elizabeth Christine Dobry officer: VP and Controller C/O VISTRA ENERGY CORP., 6555 SIERRA DRIVE, IRVING TX 75039
Brian K Ferraioli director C/O FOSTER WHEELER LTD, PERRYVILLE CORPORATE PARK, CLINTON NJ 08809-4000
Curtis A Morgan director, officer: See Remarks 1155 PERIMETER CENTER WEST, ATLANTA GA 30338