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One Stop Systems (One Stop Systems) Degree of Financial Leverage : -0.25 (As of Mar. 2024)


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What is One Stop Systems 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). One Stop Systems's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was -0.25. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

OSS's Degree of Financial Leverage is ranked better than
88.48% of 2440 companies
in the Hardware industry
Industry Median: 0.99 vs OSS: -0.25

One Stop Systems Degree of Financial Leverage Historical Data

The historical data trend for One Stop Systems'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.

One Stop Systems Degree of Financial Leverage Chart

One Stop Systems Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only 0.30 1.00 0.20 5.69 -0.65

One Stop Systems 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 3.13 3.27 3.15 -0.65 -0.25

Competitive Comparison of One Stop Systems's Degree of Financial Leverage

For the Computer Hardware subindustry, One Stop Systems'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.


One Stop Systems's Degree of Financial Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, One Stop Systems's Degree of Financial Leverage distribution charts can be found below:

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



One Stop Systems Degree of Financial Leverage Calculation

One Stop Systems'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
=( -0.36 (Mar. 2024) / -0.15 (Mar. 2023) - 1 )/( -6.678 (Mar. 2024) / 1.448 (Mar. 2023) - 1 )
=1.4/-5.6119
=-0.25***

* 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.


One Stop Systems  (NAS:OSS) 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.


One Stop Systems Degree of Financial Leverage Related Terms

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


One Stop Systems (One Stop Systems) Business Description

Industry
Traded in Other Exchanges
Address
2235 Enterprise Street, Suite 110, Escondido, CA, USA, 92029
One Stop Systems Inc designs and manufactures innovative Artificial intelligence (AI) Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays and Ion Accelerator SAN, NAS and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles and rugged entertainment applications. The company enables AI on the Fly by bringing AI datacenter performance to the edge, especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training and inference. Its products are available directly or through global distributors.
Executives
Steve D Cooper director, 10 percent owner, officer: President, CEO 2235 ENTERPRISE ST STE 110, ESCONDIDO CA 92029
Michael J. Dumont director 2235 ENTERPRISE STREET #110, ESCONDIDO CA 92029
Michael Knowles officer: Chief Executive Officer 9333 BALBOA AVENUE, SAN DIEGO CA 92123
Gregory W Matz director 1 WHITE OAK WAY, NOVATO CA 94949
David Raun director 870 MAUDE AVENUE, SUNNVALE CA 94085
James M Reardon officer: President, CDI 2235 ENTERPRISE ST STE 110, ESCONDIDO CA 92029
Teresita M. Lowman director 2235 ENTERPRISE STREET #110, ESCONDIDO CA 92029
Kenneth F Potashner director C/O MAXWELL TECHNOLOGIES INC, 9244 BALBOA AVE, SAN DIEGO CA 92123
Gioia Messinger director VICON INDUSTRIES, INC., 135 FELL COURT, HAUPPAUGE NY 11788
Jack Harrison director 2235 ENTERPRISE STREET STE 110, ESCONDIDO CA 92029
John Ralph Reardon director 2114 OPAL RIDGE, VISTA CA 92081
Barbara D'amato director 6445 SOUTH TENAYA WAY, B-130, LAS VEGAS NV 89113
Jim Ison officer: Vice President of Sales 2235 ENTERPRISE STREET STE 110, ESCONDIDO CA 92029
Kimberly C. Sentovich director 2235 ENTERPRISE ST SUITE 110, ESCONDIDO CA 92029
Josef Bressner officer: Managing Director, Bressner 2235 ENTERPRISE ST SUITE 110, ESCONDIDO CA 92029