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Axogen (Axogen) Degree of Financial Leverage : 0.41 (As of Mar. 2024)


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What is Axogen 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). Axogen's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.41. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

AXGN's Degree of Financial Leverage is ranked better than
77.64% of 832 companies
in the Medical Devices & Instruments industry
Industry Median: 0.985 vs AXGN: 0.41

Axogen Degree of Financial Leverage Historical Data

The historical data trend for Axogen'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.

Axogen Degree of Financial Leverage Chart

Axogen Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.62 0.86 0.52 0.59 0.71

Axogen Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.10 1.01 0.78 0.71 0.41

Competitive Comparison of Axogen's Degree of Financial Leverage

For the Medical Devices subindustry, Axogen'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.


Axogen's Degree of Financial Leverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Axogen's Degree of Financial Leverage distribution charts can be found below:

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



Axogen Degree of Financial Leverage Calculation

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

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.5 (Mar. 2024) / -0.58 (Mar. 2023) - 1 )/( -16.133 (Mar. 2024) / -24.261 (Mar. 2023) - 1 )
=-0.1379/-0.335
=0.41***

* 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.


Axogen  (NAS:AXGN) 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.


Axogen Degree of Financial Leverage Related Terms

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


Axogen (Axogen) Business Description

Traded in Other Exchanges
Address
13631 Progress Boulevard, Suite 400, Alachua, FL, USA, 32615
Axogen Inc is engaged in the science, development, and commercialization of technologies for peripheral nerve regeneration and repair. The company provides clinically, economically effective repair solutions for surgeons and health care providers. Its products include Avance Nerve Graft, Axoguard Nerve Connector, Axoguard Nerve Protector, Axoguard Nerve Cap, and Avive Soft Tissue Membrane. It also offers an Axotouch Two-Point Discriminator used to measure the innervation density of any surface area of the skin. Its products are available in the United States, Canada, Germany, the United Kingdom, Spain, South Korea, and several other countries.
Executives
Peter J Mariani officer: Chief Financial Officer C/O GUIDANT CORP, 111 MONUMENT CIRCLE #2900, INDIANAPOLIS IN 46204-5129
Amy Mcbride Wendell director COVIDIEN LTD., 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Burke William P. Mr. director HAEMONETICS CORPORATION, 400 WOOD ROAD, BRAINTREE MA 02184
Guido J Neels director C/O GUIDANT CORP, 111 MONUMENT CIRCLE #2900, INDIANAPOLIS IN 46204-5129
Gregory Gene Freitag director 13631 PROGRESS BLVD., ALACHUA FL 32615
Marc A Began officer: EVP & General Counsel C/O ABIOMED, INC., 22 CHERRY HILL DRIVE, DANVERS MA 01923
Joseph A. Tyndall director 13631 PROGRESS BLVD., SUITE 400, ALACHUA FL 32615
John Johnson director DENDREON CORPORATION, 1301 2ND AVENUE, SEATTLE WA 98101
Karen L. Zaderej director, officer: CEO AXOGEN INC., 13859 PROGRESS BLVD, SUITE 100, ALACHUA FL 32615
Michael Patrick Donovan officer: VP Operations C/O AXOGEN, INC., 13631 PROGRESS BLVD. SUITE 400, ALACHUA FL 32615
Maria D. Martinez officer: Chief Human Resources Officer C/O AXOGEN INC., 13631 PROGRESS BLVD, SUITE 400, ALACHUA FL 32615
Paul Thomas director ONE MILLENNIUM WAY, BRANCHBURG NJ 08876
Alan M Levine director C/O AXOGEN, INC., 13631 PROGRESS BLVD. - SUITE 400, ALACHUA FL 32615
Mark Stephen Gold director 13859 PROGRESS BLVD SUITE 100, ALACHUA FL 32615
Quentin S. Blackford director 7475 LUSK BLVD., SAN DIEGO CA 92121