GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Boston Omaha Corp (NYSE:BOC) » Definitions » Degree of Financial Leverage

Boston Omaha (Boston Omaha) Degree of Financial Leverage : 0.55 (As of Mar. 2024)


View and export this data going back to 2016. Start your Free Trial

What is Boston Omaha 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). Boston Omaha's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.55. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

BOC's Degree of Financial Leverage is ranked better than
73.08% of 1018 companies
in the Media - Diversified industry
Industry Median: 0.99 vs BOC: 0.55

Boston Omaha Degree of Financial Leverage Historical Data

The historical data trend for Boston Omaha'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.

Boston Omaha Degree of Financial Leverage Chart

Boston Omaha Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only 1.00 0.58 0.60 0.94 0.89

Boston Omaha 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 -0.62 1.15 8.26 0.89 0.55

Competitive Comparison of Boston Omaha's Degree of Financial Leverage

For the Advertising Agencies subindustry, Boston Omaha'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.


Boston Omaha's Degree of Financial Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Boston Omaha's Degree of Financial Leverage distribution charts can be found below:

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



Boston Omaha Degree of Financial Leverage Calculation

Boston Omaha'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
=( -0.21 (Mar. 2024) / -0.32 (Mar. 2023) - 1 )/( -7.098 (Mar. 2024) / -19.071 (Mar. 2023) - 1 )
=-0.3438/-0.6278
=0.55***

* 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.


Boston Omaha  (NYSE:BOC) 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.


Boston Omaha Degree of Financial Leverage Related Terms

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


Boston Omaha (Boston Omaha) Business Description

Traded in Other Exchanges
Address
1601 Dodge Street, Suite 3300, Omaha, NE, USA, 68102
Boston Omaha Corp is a US-based company which invests in real estate. Its operations include its ownership of multiple billboards in Florida, Georgia, Wisconsin, and Alabama and equity method investments in several real estate companies. The company operates three separate lines of business, outdoor billboard advertising, surety insurance and related brokerage activities, and broadband services. It also engages in investments in real estate management and related activities. The company generates the majority of the revenue from billboard rentals.
Executives
Joshua Paul Weisenburger officer: Chief Financial Officer 1411 HARNEY ST. SUITE 200, OMAHA NE 68102
Jeffrey C Royal director 5420 NICHOLAS STREET, OMAHA NE 68132
Adam K Peterson 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Alexander Buffett Rozek director, 10 percent owner, officer: Co-Chief Executive Officer 292 NEWBURY ST #333, BOSTON MA 02115
Brendan Joseph Keating director 8918 SPANISH RIDGE AVENUE, SUITE 100, LAS VEGAS NV 89148
Steven Charles Mcghie officer: See Remarks BOSTON OMAHA CORPORATION, 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
David John Herman officer: See Remarks BOSTON OMAHA CORPORATION, 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Vishnu Srinivasan director C/O BOSTON OMAHA CORPORATION, 292 NEWBURY ST. SUITE 333, BOSTON MA 02115
Kenan Frank H. Ii director C/O BOSTON OMAHA CORPORATION.,, 292 NEWBURY ST. SUITE 333, BOSTON MA 02115
Joseph Max Meisinger officer: Chief Accounting Officer BOSTON OMAHA CORPORATION, 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Boulderado Group, Llc other: Manager is Director and Co-CEO 292 NEWBURY STREET, SUITE 333, BOSTON MA 02115
Bradford B Briner director 705 GIMGHOUL ROAD, CHAPEL HILL NC 27514
Magnolia Boc Ii, Lp 10 percent owner 1411 HARNEY ST., SUITE 200, OMAHA NE 68102
Magnolia Capital Fund, Lp 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
William Scott Lafoy officer: CEO of Link Media Holdings,LLC C/O LINK MEDIA OUTDOOR, 200 MANSELL CT. EAST, BLDG 200 STE. 360, ROSWELL GA 30076