What is Atlas Air Worldwide Holdings 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).
Atlas Air Worldwide Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2022 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Atlas Air Worldwide Holdings's Degree of Financial Leverage or its related term are showing as below:
AAWW's Degree of Financial Leverage is not ranked *
in the Transportation industry.
Industry Median: 1.05 * Ranked among companies with meaningful Degree of Financial Leverage only.
Atlas Air Worldwide Holdings Degree of Financial Leverage Historical Data
* 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.
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Atlas Air Worldwide Holdings Degree of Financial Leverage Chart
Competitive Comparison of Atlas Air Worldwide Holdings's Degree of Financial Leverage
For the Airports & Air Services subindustry, Atlas Air Worldwide Holdings'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.
Atlas Air Worldwide Holdings's Degree of Financial Leverage Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Atlas Air Worldwide Holdings's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Atlas Air Worldwide Holdings's Degree of Financial Leverage falls into.
Atlas Air Worldwide Holdings Degree of Financial Leverage Calculation
Atlas Air Worldwide Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2022 is calculated as:
* 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.
Atlas Air Worldwide Holdings (NAS:AAWW) 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.
Atlas Air Worldwide Holdings Degree of Financial Leverage Related Terms
Thank you for viewing the detailed overview of Atlas Air Worldwide Holdings's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Atlas Air Worldwide Holdings (Atlas Air Worldwide Holdings) Business Description
Atlas Air Worldwide Holdings Inc is a provider of outsourced aircraft and aviation operating services and the outsourced airfreight provider in the world. Company operates a fleet of 747 freighters and provides customers with a broad array of 747, 777, 767 and 737 aircraft for domestic, regional and international cargo and passenger operations. The company has operations in Africa, Asia, Australia, Europe, the Middle East, North America and South America. The company's business is organized into two operating segments based on service offerings: 1) Airline Operations include providing cargo aircraft outsourcing services to customers on an ACMI, CMI and Charter basis. 2) Dry Leasing business provides aircraft and engines to customers, including CMI customers, for a fixed monthly amount.
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