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Yext (YEXT) Degree of Financial Leverage : 0.96 (As of Jan. 2024)


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What is Yext 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). Yext's Degree of Financial Leverage for the quarter that ended in Jan. 2024 was 0.96. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

YEXT's Degree of Financial Leverage is ranked better than
53.6% of 2627 companies
in the Software industry
Industry Median: 0.99 vs YEXT: 0.96

Yext Degree of Financial Leverage Historical Data

The historical data trend for Yext'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.

Yext Degree of Financial Leverage Chart

Yext Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.71 1.26 2.81 0.89 0.96

Yext Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 0.89 0.96 0.96 0.97 0.96

Competitive Comparison of Yext's Degree of Financial Leverage

For the Software - Infrastructure subindustry, Yext'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.


Yext's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Yext's Degree of Financial Leverage distribution charts can be found below:

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



Yext Degree of Financial Leverage Calculation

Yext's Degree of Financial Leverage for the quarter that ended in Jan. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.02 (Jan. 2024) / -0.53 (Jan. 2023) - 1 )/( 0.132 (Jan. 2024) / -63.269 (Jan. 2023) - 1 )
=-0.9623/-1.0021
=0.96***

* 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.


Yext  (NYSE:YEXT) 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.


Yext Degree of Financial Leverage Related Terms

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


Yext (YEXT) Business Description

Industry
Traded in Other Exchanges
Address
61 Ninth Avenue, New York, NY, USA, 10011
Yext Inc provides a knowledge engine platform that lets businesses manage their digital knowledge in the cloud and sync it to approximately 200 services including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp. Digital knowledge is the structured information that a business wants to make publicly accessible. The company also makes search intelligent by helping to provide precise, accurate and current answers to location-based queries that are conducted across the web and mobile applications and voice and artificial intelligence, or AI, engines. The company derives majority of its revenues from subscription services.
Executives
Ho Shin officer: General Counsel 61 NINTH AVENUE, NEW YORK NY 10011
Brian Distelburger director, officer: President ONE MADISON AVENUE, FIFTH FLOOR, NEW YORK NY 10010
Julie Richardson director YEXT, INC., 1 MADISON AVENUE, 5TH FLOOR, NEW YORK NY 10010
Evan Skorpen director C/O YEXT, INC., 61 NINTH STREET, NEW YORK NY 10011
Faheem Bawa officer: Chief Accounting Officer C/O YEXT, INC., 61 NINTH STREET, NEW YORK NY 10011
Marc Ferrentino officer: President and COO 61 NINTH AVENUE, NEW YORK NY 10011
Darryl Bond officer: Chief Accounting Officer ONE MADISON AVENUE, FIFTH FLOOR, NEW YORK NY 10010
Seth H. Waugh director C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Steven Cakebread officer: Chief Financial Officer YEXT, INC., ONE MADISON AVE., FIFTH FLOOR, NEW YORK NY 10010
David Rudnitsky officer: Chief Revenue Officer C/O YEXT, INC., 61 NINTH STREET, NEW YORK NY 10011
Howard Lerman director, officer: Chief Executive Officer ONE MADISON AVENUE, FIFTH FLOOR, NEW YORK NY 10010
Tamar Yehoshua director 301 CONGRESS AVE, STE 700, AUSTIN TX 78701
Shane Battier director 2600 VIRGINIA AVENUE NW, SUITE T23 MANAGEMENT OFFICE, WASHINGTON DC 20037
Hillary B Smith director C/O YEXT, INC, 61 NINTH AVENUE, NEW YORK NY 10011
Michael Walrath director ONE MADISON AVENUE, FIFTH FLOOR, NEW YORK NY 10010