GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Jacksam Corp (OTCPK:JKSM) » Definitions » Degree of Financial Leverage

Jacksam (Jacksam) Degree of Financial Leverage : 3.37 (As of Mar. 2024)


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

What is Jacksam 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). Jacksam's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 3.37. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

JKSM's Degree of Financial Leverage is ranked worse than
94.24% of 2933 companies
in the Industrial Products industry
Industry Median: 1 vs JKSM: 3.37

Jacksam Degree of Financial Leverage Historical Data

The historical data trend for Jacksam'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.

Jacksam Degree of Financial Leverage Chart

Jacksam Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.21 0.48 0.59 -8.36 -2.84

Jacksam 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 -7.36 -0.60 0.06 -2.84 3.37

Competitive Comparison of Jacksam's Degree of Financial Leverage

For the Specialty Industrial Machinery subindustry, Jacksam'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.


Jacksam's Degree of Financial Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Jacksam's Degree of Financial Leverage distribution charts can be found below:

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



Jacksam Degree of Financial Leverage Calculation

Jacksam'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
=( -0.035 (Mar. 2024) / -0.02 (Mar. 2023) - 1 )/( -1.571 (Mar. 2024) / -1.285 (Mar. 2023) - 1 )
=0.75/0.2226
=3.37***

* 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.


Jacksam  (OTCPK:JKSM) 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.


Jacksam Degree of Financial Leverage Related Terms

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


Jacksam (Jacksam) Business Description

Traded in Other Exchanges
N/A
Address
3100 Airway Avenue, Suite 138, Costa Mesa, CA, USA, 92626
Jacksam Corp is a technology company focused on developing and commercializing products utilizing a proprietary technology platform. The company services the medical cannabis, hemp and CBD segments of the larger e-cigarette and vaporizer markets with oil vaporizer focused products. It offers capping, vaporizer cartridge filling, and automation systems. The company's product line consists of the 710 Shark cartridge filling machine, the 710 Captain cartridge capping machine, the PreRoll-ER automated pre-roll & cone filling machine, and cartridges. The Company derives revenues from the sale of machines and non-machine products.
Executives
Daniel Lee Davis 10 percent owner 31 ARBOR WALK LN, RANCHO SANTA MARGARITA CA 92688
Theodore Winston director 394 HAMMOND STREET, CHESTNUT HILL MA 02467
Hagen Donald Robert Jr director 15 CORN FLOWER ST, COTO DE CAZA CA 92679
Scott Wessler director 5 BOARDWALK, NEWPORT BEACH CA 92660
Michael Sakala officer: CFO & Secretary 21662 OCEAN VISTA DR, APT C, LAGUNA BEACH CA 92651
Mark Adams director, officer: CEO 4440 VON KARMAN AVENUE, SUITE 220, NEWPORT BEACH CA 92660
Yanhong Deng director ROOM 600, N. TUANJIEHU STREET, CHAOYANG DISTRICT, BEIJING F4 100026
Xiangyang Liu director ROOM 600, N. TUANJIEHU STREET, CHAOYANG DISTRICT, BEIJING F4 100026
Beijing Hua Hui Hengye Investement Ltd. 10 percent owner PINE VALLEY CENTER, 11TH FLOOR, 8 JIANGGUO MEN OUTER STREET, BEIJING J0 100022
Redrock Capital Venture Ltd. 10 percent owner ORIENTAL PLAZA BLDG W3 12TH FL, EAST CHANG'AN AVE DONGCHENG DISTRICT, BEIJING F4 100738
Carla Zhou officer: Chief Financial Officer ORIENTAL PLAZA, 1 EAST CHANG'AN AVE,, DONGCHENGDISTRICT, BEIJING F4 100738
Zengjie Chen 10 percent owner NO. 16 ROOM 402, E MEI ROAD 366, HONGKOU DISTRICT, SHANGHAI F4 00000
Union Max Enterprises Ltd 10 percent owner 16F A BUSINESS OFFICE E. AREA OF CENTURY, GOLDEN RESOURCES HOTEL NO. 69 BANJING RD, HAIDIAN DISTRICT, BE F4 100097
Her Village Ltd 10 percent owner 8/F, CRAWFORD TOWER, 99 JERVOIS STREET SHEUNG WAN, HONG KONG K3 100738
Professional Offshore Opportunity Fund, Ltd. 10 percent owner 1400 OLD COUNTRY ROAD, SUITE 206, WESTBURY NY 11590

Jacksam (Jacksam) Headlines

From GuruFocus

Jacksam (OTCMKTS: JKSM) CEO Provides Company Update

By PRNewswire PRNewswire 03-08-2019