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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). Workhorse Group's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 158.26. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Workhorse Group's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Workhorse Group'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.
Workhorse Group Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 2.10 | 0.50 | 1.09 | 1.06 | 158.26 |
Workhorse Group 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 | 1.06 | 1.14 | 1.18 | 1.00 | 158.26 |
For the Auto Manufacturers subindustry, Workhorse Group'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 Vehicles & Parts industry and Consumer Cyclical sector, Workhorse Group's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Workhorse Group's Degree of Financial Leverage falls into.
Workhorse Group'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 |
= | ( -0.6 (Dec. 2023) / -0.74 (Dec. 2022) - 1 ) | / | ( -115.298 (Dec. 2023) / -115.436 (Dec. 2022) - 1 ) | |
= | -0.1892 | / | -0.0012 | |
= | 158.26*** |
* 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.
Workhorse Group (NAS:WKHS) 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 Workhorse Group's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Jean Botti | director | 3600 PARK 42 DRIVE, SUITE 160E, SHARONVILLE OH 45241 |
Brandon Torres Declet | director | C/O MEASURE GLOBAL INC., 1701 RHODE ISLAND AVENUE NW, STE 05-103, WASHINGTON DC 20036 |
Stanley Raymond March | officer: VP, Business Development | 100 COMMERCE DRIVE, LOVELAND OH 45140 |
Michael Laurence Clark | director | 828 PRESIDENT STREET, BROOKLYN NY 11215 |
Jacqueline A Dedo | director | 3939 TECHNOLOGY DRIVE, MAUMEE OH 43537 |
Raymond Joseph Chess | director | 1084 ANDANTE CT, OXFORD MI 48370 |
Richard F Dauch | director, officer: Chief Executive Officer | C/O SPARTAN MOTORS INC, 1541 REYNOLDS ROAD, CHARLOTTE MI 48813 |
Harry Demott | director | C/O WORKHORSE GROUP INC.,, 100 COMMERCE DRIVE, LOVELAND OH 45140 |
Austin Scott Miller | director | 100 COMMERCE STREET, LOVELAND OH 45140 |
James Peters | officer: VP, Supply Chain Management | 100 COMMERCE STREET, LOVELAND OH 45140 |
Pamela S. Mader | director | 2522 N 600 E, CRAIGVILLE IN 46731 |
Quigley William G Iii | director | |
Joshua Joseph Anderson | officer: Chief Technology Officer | 100 COMMERCE DRIVE, LOVELAND OH 45140 |
Ryan Wesley Gaul | officer: President, Commercial Vehicles | 21680 HAGGERTY ROAD, NORTHVILLE MI 48167 |
John Wesley Graber | officer: President, Aerospace | C/O ABX AIR, INC., 145 HUNTER DRIVE, WILMINGTON OH 45039 |
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