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CNL Healthcare Properties (CNL Healthcare Properties) Degree of Financial Leverage : 9.28 (As of Mar. 2024)


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What is CNL Healthcare Properties 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). CNL Healthcare Properties's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 9.28. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CHTH's Degree of Financial Leverage is ranked worse than
96.9% of 678 companies
in the REITs industry
Industry Median: 1.08 vs CHTH: 9.28

CNL Healthcare Properties Degree of Financial Leverage Historical Data

The historical data trend for CNL Healthcare Properties'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.

CNL Healthcare Properties Degree of Financial Leverage Chart

CNL Healthcare Properties 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 -13.58 2.94 7.46 -0.04 -28.89

CNL Healthcare Properties 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 -0.24 -0.04 0.92 -28.89 9.28

Competitive Comparison of CNL Healthcare Properties's Degree of Financial Leverage

For the REIT - Healthcare Facilities subindustry, CNL Healthcare Properties'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.


CNL Healthcare Properties's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, CNL Healthcare Properties's Degree of Financial Leverage distribution charts can be found below:

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



CNL Healthcare Properties Degree of Financial Leverage Calculation

CNL Healthcare Properties'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
=( -0.14 (Mar. 2024) / -0.068 (Mar. 2023) - 1 )/( 19.547 (Mar. 2024) / 17.545 (Mar. 2023) - 1 )
=1.0588/0.1141
=9.28***

* 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.


CNL Healthcare Properties  (OTCPK:CHTH) 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.


CNL Healthcare Properties Degree of Financial Leverage Related Terms

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


CNL Healthcare Properties (CNL Healthcare Properties) Business Description

Traded in Other Exchanges
N/A
Address
450 South Orange Avenue, CNL Center at City Commons, Orlando, FL, USA, 32801
CNL Healthcare Properties Inc operates as a real estate investment trust. The company's real estate ownership consists of owning, managing, leasing, acquiring, developing, investing in, and as conditions warrant, disposing of real estate assets in the healthcare, office, retail, lifestyle, restaurant, hotel, and multifamily development sectors. Additionally, it focuses on acquiring properties in the senior housing, medical office, acute care, and post-acute care classes, including stabilized, value-add, and development properties, income-producing real estate, and real estate-related securities and loans.
Executives
John R. Mcrae officer: Senior Vice President 823 BRIGHTWATER CIRCLE, MAITLAND FL 32751
Tracey B. Bracco officer: See Remarks 450 S. ORANGE AVENUE, ORLANDO FL 32801
John F. Starr officer: See Remarks 450 SOUTH ORANGE AVENUE, ORLANDO FL 32801
L Burke Rainey officer: See Explanation of Responses 450 S. ORANGE AVENUE, ORLANDO FL 32801
Seneff James M Jr director CNL FINANCIAL GROUP, 450 SOUTH ORANGE AVENUE, ORLANDO FL 32801
Kevin R Maddron officer: See Remarks P.O. BOX 4920, ORLANDO FL 32802
J Chandler Martin director 2226 THETFORD COURT, CHARLOTTE NC 28211
Joseph T Johnson officer: SVP, CFO and Treasurer 200 S. ORANGE AVENUE, SUITE 2700, ORLANDO FL 32801
J Douglas Holladay director 7902 WESTPARK DR, C/O SUNRISE ASSISTED LIVING, MCLEAN VA 22102
Bruce Douglas director 450 SOUTH ORANGE AVENUE, 5TH FLOOR, ORLANDO FL 32801
Dennis N Folken director 450 SOUTH ORANGE AVENUE, 5TH FLOOR, ORLANDO FL 32801
Holly Greer officer: SVP, General Counsel and Secy 450 SOUTH ORANGE AVENUE, ORLANDO FL 32801
Thomas Kent Sittema director P.O. BOX 4920, ORLANDO FL 32802
Stephen H Mauldin officer: President and CEO 450 SOUTH ORANGE AVENUE, ORLANDO FL 32801
Ixchell Duarte officer: SVP, Chief Accounting Officer 450 S ORANGE AVE, ORLANDO FL 32801

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