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USD Partners LP (USD Partners LP) Degree of Financial Leverage : 0.73 (As of Sep. 2023)


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What is USD Partners LP 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). USD Partners LP's Degree of Financial Leverage for the quarter that ended in Sep. 2023 was 0.73. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

USDP's Degree of Financial Leverage is ranked better than
71.46% of 946 companies
in the Transportation industry
Industry Median: 1.04 vs USDP: 0.73

USD Partners LP Degree of Financial Leverage Historical Data

The historical data trend for USD Partners LP'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.

USD Partners LP Degree of Financial Leverage Chart

USD Partners LP Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.26 1.87 2.81 0.51 1.19

USD Partners LP Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 1.16 1.19 1.21 1.30 0.73

Competitive Comparison of USD Partners LP's Degree of Financial Leverage

For the Railroads subindustry, USD Partners LP'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.


USD Partners LP's Degree of Financial Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, USD Partners LP's Degree of Financial Leverage distribution charts can be found below:

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



USD Partners LP Degree of Financial Leverage Calculation

USD Partners LP's Degree of Financial Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.024 (Sep. 2023) / -1.508 (Sep. 2022) - 1 )/( 17.792 (Sep. 2023) / -45.456 (Sep. 2022) - 1 )
=-1.0159/-1.3914
=0.73***

* 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.


USD Partners LP  (OTCPK:USDP) 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.


USD Partners LP Degree of Financial Leverage Related Terms

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


USD Partners LP (USD Partners LP) Business Description

Traded in Other Exchanges
N/A
Address
811 Main Street, Suite 2800, Houston, TX, USA, 77002
USD Partners LP is formed to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The company's network of crude oil terminals facilitates the transportation of heavy crude oil from Western Canada to key demand centers across North America. The company's operations include railcar loading and unloading, storage and blending in onsite tanks, inbound and outbound pipeline connectivity, truck transloading, and other related logistics services. The company also provides one of the customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons by rail. The company manages its business in two reportable segments: Terminalling services and Fleet services.
Executives
Jeffrey P. Wood director, other: SEE REMARKS EAGLE ROCK ENERGY PARTNERS, L.P., P.O. BOX 2968, HOUSTON TX 77252-2968
Keith Benson officer: SEE REMARKS C/O USD PARTNERS LP, 811 MAIN STREET, SUITE 2800, HOUSTON TX 77002
Francesco Ciabatti director, other: See Remarks. 51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Dan Borgen director, officer: SEE REMARKS 9500 NEW CENTURY, PASADENA TX 77507
Michael Ray Curry director, other: SEE REMARKS C/O USD PARTNERS LP, 811 MAIN STREET, SUITE 2800, HOUSTON TX 77002
Energy Capital Partners Iii, Lp 10 percent owner 51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Michael Jay Stanford officer: Vice President, CAO 811 MAIN ST., SUITE 2800, HOUSTON TX 77002
Energy Capital Partners Gp Iii, Lp director, 10 percent owner 40 BEECHWOOD ROAD, SUMMIT NJ 07901
G Stacy Smith director, other: SEE REMARKS 300 CRESCENT COURT SUITE 1111, DALLAS TX 75201
Ecp Controlco, Llc director, 10 percent owner 40 BEECHWOOD ROAD, SUMMIT NJ 07901
Joshua Dean Ruple officer: SEE REMARKS 811 MAIN STREET, SUITE 2800, HOUSTON TX 77002
Schuyler Coppedge director, other: SEE REMARKS C/O USD PARTNERS LP, 811 MAIN STREET, SUITE 2800, HOUSTON TX 77002
Paul Leray Tucker officer: SEE REMARKS C/O USD PARTNERS LP, 811 MAIN STREET, SUITE 2800, HOUSTON TX 77002
Adam K Altsuler officer: SEE REMARKS C/O USD PARTNERS LP, 811 MAIN STREET, SUITE 2800, HOUSTON TX 77002
Energy Capital Partners Iii-b (usd Ip), Lp director, 10 percent owner 51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078