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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). BRC's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.92. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for BRC's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for BRC'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.
BRC Annual Data | |||||||||||
Trend | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||
Degree of Financial Leverage | - | 0.03 | 1.27 | 0.17 | 1.01 |
BRC Quarterly Data | ||||||||||||||||
Dec19 | 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 | 1.14 | 1.05 | 1.02 | 1.01 | 0.92 |
For the Packaged Foods subindustry, BRC'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.
For the Consumer Packaged Goods industry and Consumer Defensive sector, BRC's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where BRC's Degree of Financial Leverage falls into.
BRC'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 |
= | ( -0.17 (Mar. 2024) / -0.47 (Mar. 2023) - 1 ) | / | ( -29.304 (Mar. 2024) / -96.817 (Mar. 2023) - 1 ) | |
= | -0.6383 | / | -0.6973 | |
= | 0.92*** |
* 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.
BRC (NYSE:BRCC) 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.
Thank you for viewing the detailed overview of BRC's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Glenn W. Welling | director, 10 percent owner | 610 NEWPORT CENTER DRIVE, SUITE 950, NEWPORT BEACH CA 92660 |
Thomas E Davin | director, officer: Co-Chief Executive Officer | |
Kathryn P Dickson | director | 1245 CEDAR LAKE ROAD S., MINNEAPOLIS MN 55416 |
Andrew J. Mccormick | officer: Gen. Counsel & Corp. Secretary | C/O LAIRD SUPERFOOD, INC., 275 W. LUNDGREN MILL DRIVE, SISTERS OR 97759 |
Stephen M Kadenacy | officer: CFO | C/O AECOM TECHNOLOGY CORPORATION, 555 S. FLOWER STREET, SUITE 3700, LOS ANGELES CA 90071 |
Christopher John Clark | officer: CTO & COO | 1250 S. CAPITAL OF TEXAS HIGHWAY, BUILDING 2, SUITE 285, AUSTIN TX 78746 |
Christopher Mondzelewski | officer: President and CMO | C/O BRC INC., 1144 S 500 W, SALT LAKE CITY UT 84101 |
Steven Taslitz | director | C/O STERLING PARTNERS, 401 NORTH MICHIGAN AVENUE, SUITE 3300, CHICAGO IL 60611 |
George Munoz | director | C/O MARRIOTT INTERNATONAL INC, 10400 FERNWOOD ROAD, BETHESDA MD 20817 |
Roland Smith | director, officer: Executive Chairman | 2951 28TH STREET, SANTA MONICA CA 90405 |
Heath Richard Nielsen | officer: Chief Retail Officer | 1250 S. CAPITAL OF TEXAS HIGHWAY, BUILDING 2, SUITE 285, AUSTIN TX 78746 |
Gregory James Iverson | officer: Chief Financial Officer | 4025 S. RIVERPOINT PARKWAY, CF-K809, PHOENIX AZ 85040 |
Kristina A Braendel | officer: Chief Accounting Officer | C/O BRC INC., 1144 S. 500 W, SALT LAKE CITY UT 84101 |
Engaged Capital Co-invest Xiii, Lp | other: See Footnote 1 | 610 NEWPORT CENTER DRIVE, SUITE 250, NEWPORT BEACH CA 92660 |
Engaged Capital Llc | 10 percent owner | 610 NEWPORT CENTER DRIVE, SUITE 950, NEWPORT BEACH CA 92660 |
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