GURUFOCUS.COM » STOCK LIST » Technology » Software » Cyxtera Technologies Inc (OTCPK:CYXTQ) » Definitions » Degree of Financial Leverage

Cyxtera Technologies (Cyxtera Technologies) Degree of Financial Leverage : 0.00 (As of Mar. 2023)


View and export this data going back to 2021. Start your Free Trial

What is Cyxtera Technologies 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). Cyxtera Technologies's Degree of Financial Leverage for the quarter that ended in Mar. 2023 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

CYXTQ's Degree of Financial Leverage is not ranked *
in the Software industry.
Industry Median: 0.98
* Ranked among companies with meaningful Degree of Financial Leverage only.

Cyxtera Technologies Degree of Financial Leverage Historical Data

The historical data trend for Cyxtera Technologies'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.

Cyxtera Technologies Degree of Financial Leverage Chart

Cyxtera Technologies Annual Data
Trend Dec20 Dec21 Dec22
Degree of Financial Leverage
- - 0.90

Cyxtera Technologies Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - 0.05 0.05 0.90 0.49

Competitive Comparison of Cyxtera Technologies's Degree of Financial Leverage

For the Information Technology Services subindustry, Cyxtera Technologies'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.


Cyxtera Technologies's Degree of Financial Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Cyxtera Technologies's Degree of Financial Leverage distribution charts can be found below:

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



Cyxtera Technologies Degree of Financial Leverage Calculation

Cyxtera Technologies's Degree of Financial Leverage for the quarter that ended in Mar. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -3.56 (Mar. 2023) / -1.47 (Mar. 2022) - 1 )/( -490.4 (Mar. 2023) / -126.3 (Mar. 2022) - 1 )
=1.4218/2.8828
=0.49***

* 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.


Cyxtera Technologies  (OTCPK:CYXTQ) 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.


Cyxtera Technologies Degree of Financial Leverage Related Terms

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


Cyxtera Technologies (Cyxtera Technologies) Business Description

Traded in Other Exchanges
N/A
Address
2333 Ponce De Leon Boulevard, Suite 900, Coral Gables, FL, USA, 33134
Cyxtera Technologies Inc is engaged in data center colocation and interconnection services. The company operates a footprint of more than 60 data centers around the world, providing services to more than 2,300 leading enterprises and U.S. federal government agencies. Cyxtera brings proven operational excellence, global scale, flexibility and customer-focused innovation together to provide a comprehensive portfolio of data center and interconnection services.
Executives
Jeffrey C Smith director, 10 percent owner 201 E LAS OLAS BOULEVARD, SUITE 1000, FORT LAUDERDALE FL 33301
Starboard Value Lp director, 10 percent owner 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Starboard Value & Opportunity Master Fund L Lp director, 10 percent owner 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Scott D. Vogel director 885 PARK AVENUE, NEW YORK NY 10075
Frederick Arnold director CHATSWORTH ADVISORS, INC., 3 YORK ROAD, LARCHMONT NY 10538
Roger Meltzer director 80 PINE STREET, C/O CAHILL GORDON& REINDELL LLP, NEW YORK NY 10005
Benjamin Phillips director 2 ALHAMBRA PLAZA, SUITE PH-1-B, CORAL GABLES FL 33134
James Randolph Rowland officer: Chief Operating Officer C/O CYXTERA TECHNOLOGIES, INC., 2333 PONCE DE LEON, SUITE 900, CORAL CABLES FL 33134
Victor Semah officer: Chief Legal Officer C/O CYXTERA TECHNOLOGIES, INC., 2333 PONCE DE LEON, SUITE 900, CORAL CABLES FL 33134
Carlos Ignacio Sagasta officer: Chief Financial Officer C/O CYXTERA TECHNOLOGIES, INC., 2333 PONCE DE LEON, SUITE 900, CORAL CABLES FL 33134
Fonseca Nelson A. Jr director, officer: See Remarks ONE BISCAYNE TOWER, 2 S. BISCAYNE BLVD, SUITE 2800, MIAMI FL 33131
Edmundo Miranda officer: See Remarks C/O SPIRIT AIRLINES, INC., 2800 EXECUTIVE WAY, MIRAMAR FL 33025
Bcec-sis Holdings L.p. 10 percent owner ARNOLD HOUSE PO BOX 273, ST JULIAN'S AVENUE, ST PETER PORT Y7 GY1 3RD
Gregory L Waters director ONSEMI C/O H. SPENCER, 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250
Starboard Value L Lp director, 10 percent owner 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017

Cyxtera Technologies (Cyxtera Technologies) Headlines