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Maplebear (Maplebear) Degree of Financial Leverage : 15.85 (As of Mar. 2024)


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What is Maplebear 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). Maplebear's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 15.85. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CART's Degree of Financial Leverage is ranked worse than
98.71% of 1082 companies
in the Retail - Cyclical industry
Industry Median: 1.03 vs CART: 15.85

Maplebear Degree of Financial Leverage Historical Data

The historical data trend for Maplebear'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.

Maplebear Degree of Financial Leverage Chart

Maplebear Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- 0.30 1.20 8.19

Maplebear Quarterly Data
Dec20 Dec21 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only - - -1.17 8.19 15.85

Competitive Comparison of Maplebear's Degree of Financial Leverage

For the Internet Retail subindustry, Maplebear'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.


Maplebear's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Maplebear's Degree of Financial Leverage distribution charts can be found below:

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



Maplebear Degree of Financial Leverage Calculation

Maplebear'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
=( -19.873 (Mar. 2024) / 0.148 (Mar. 2023) - 1 )/( -2148 (Mar. 2024) / 285 (Mar. 2023) - 1 )
=-135.277/-8.5368
=15.85***

* 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.


Maplebear  (NAS:CART) 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.


Maplebear Degree of Financial Leverage Related Terms

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


Maplebear (Maplebear) Business Description

Traded in Other Exchanges
N/A
Address
50 Beale Street, Suite 600, San Francisco, CA, USA, 94105
Maplebear, which does business as Instacart, is an online grocery pickup and delivery service provider currently in the United States and Canada. Instacart partners with local and national grocers who provide their selection of food and other goods to customers through Instacart's mobile app or website. After a customer places an order, an independent personal shopper employed by Instacart will pick the order and either prepare it for pickup or deliver it to the customer's chosen location. Instacart's revenue model consists of transaction revenue in the form of retailer and customer fees, as well as advertising revenue from brand advertising on Instacart platforms.
Executives
Ravi Gupta director, 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Grosvenor Capital Management, L.p. other: See Explanation of Responses 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Sc Us/e Expansion Fund I Management, L.p. 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Apoorva Mehta 10 percent owner C/O MAPLEBEAR INC., 50 BEALE STREET, SUITE 600, SAN FRANCISCO CA 94105
Sequoia Capital U.s. Venture Partners Fund Xiv (q), L.p. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sc Us (ttgp), Ltd. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
D1 Capital Partners L.p. director, 10 percent owner, other: See Remarks 9 WEST 57TH STREET, 36TH FLOOR, NEW YORK NY 10019
Sequoia Capital Us/e Expansion Fund I, L.p. 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Global Growth Fund Ii, L.p. 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Gcm Grosvenor Inc. other: See Explanation of Responses 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Gcm Special Opportunities Master Fund, Ltd. other: See Explanation of Responses PO BOX 309 UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104
Gcm Grosvenor Equity Opportunities Master Fund, L.p. other: See Explanation of Responses C/O GROSVENOR CAPITAL MANAGEMENT, L.P., 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Gcm V, Llc other: See Explanation of Responses C/O GROSVENOR CAPITAL MANAGEMENT, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Michael Jay Sacks other: See Explanation of Responses 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Scggf Iii - U.s./india Management, L.p. 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025