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Spectral AI (Spectral AI) Degree of Financial Leverage : 2.54 (As of Mar. 2024)


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What is Spectral AI 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). Spectral AI's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 2.54. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

MDAI's Degree of Financial Leverage is ranked worse than
88.18% of 829 companies
in the Medical Devices & Instruments industry
Industry Median: 0.99 vs MDAI: 2.54

Spectral AI Degree of Financial Leverage Historical Data

The historical data trend for Spectral AI'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.

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Spectral AI Degree of Financial Leverage Chart

Spectral AI Annual Data
Trend Dec21 Dec22 Dec23
Degree of Financial Leverage
- 1.21 2.23

Spectral AI Quarterly Data
Dec21 Mar22 Sep22 Dec22 Mar23 Sep23 Dec23 Mar24
Degree of Financial Leverage Get a 7-Day Free Trial 1.21 - - 2.23 2.54

Competitive Comparison of Spectral AI's Degree of Financial Leverage

For the Medical Devices subindustry, Spectral AI'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.


Spectral AI's Degree of Financial Leverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Spectral AI's Degree of Financial Leverage distribution charts can be found below:

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



Spectral AI Degree of Financial Leverage Calculation

Spectral AI'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
=( -1.18 (Mar. 2024) / -0.365 (Mar. 2023) - 1 )/( -9.238 (Mar. 2024) / -4.918 (Mar. 2023) - 1 )
=2.2329/0.8784
=2.54***

* 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.


Spectral AI  (NAS:MDAI) 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.


Spectral AI Degree of Financial Leverage Related Terms

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Spectral AI (Spectral AI) Business Description

Traded in Other Exchanges
N/A
Address
2515 McKinney Avenue, Suite 1000, Dallas, TX, USA, 75201
Spectral AI Inc is an AI company, focused on predictive medical diagnostics. Spectral is devoting substantially all of its efforts towards the research and development of its DeepView System, an internally developed MSI device that has designated FDA BDD status. Its DeepView System uses proprietary algorithms to distinguish between damaged and healthy human tissue invisible to the naked eye, providing Day One healing assessments in seconds. The Company's output is specifically engineered to allow the physician to make a more accurate, timely and informed decision regarding the treatment of the patient's wound.
Executives
John Michael Dimaio 10 percent owner 6125 LUTHER LANE, DALLAS TX 75225
Michael Patrick Murphy director 767 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10153
Els 1960 Family, L.p. 10 percent owner 2323 VICTORY AVE., SUITE. 700, DALLAS TX 75219
Richard John Cotton director RUE DU VILLAGE 4, CHAMPERY V8 1874
Mellish Martin C.b. director 13 BERRILL FARMS LN, HANOVER NH 03755
Jeffrey Edward Thatcher officer: Chief Scientist 6659 ESCONDIDO ST, IRVING TX 75039
Nils Windler officer: Chief Financial Officer 8602 NAPA LANDING, SAN ANTONIO TX 78015
Wensheng Fan director, officer: CHIEF EXECUTIVE OFFICER 3320 SPRING MOUNTAIN DRIVE, PLANO TX 75025
Vincent S. Capone officer: GENERAL COUNSEL 1620 GRASSHOPPER LANE, LOWER GWYNEDD PA 19002
Nikolaos Pagoulatos officer: CHIEF OPERATING OFFICER 5122 IROQUOIS DR, FRISCO TX 75034
Xiaojia Cynthia Cai director 10 CELESTIAL WAY, NEWARK DE 19711
Heather Bellini director 767 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10153
Edmonds Franklin S. Jr. director 767 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10153
Rosecliff Acquisition Sponsor I Llc director 767 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10153
Erich Spangenberg 10 percent owner 73 595 EL PASEO, SUITE 2204, PALM DESERT CA 92260