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Cybercom Group AB (OSTO:CYBE) Degree of Financial Leverage : 0.00 (As of Sep. 2015)


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What is Cybercom Group AB 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). Cybercom Group AB's Degree of Financial Leverage for the quarter that ended in Sep. 2015 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

OSTO:CYBE'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.

Cybercom Group AB Degree of Financial Leverage Historical Data

The historical data trend for Cybercom Group AB'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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Cybercom Group AB Degree of Financial Leverage Chart

Cybercom Group AB Annual Data
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Cybercom Group AB Quarterly Data
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Competitive Comparison of Cybercom Group AB's Degree of Financial Leverage

For the Information Technology Services subindustry, Cybercom Group AB'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.


Cybercom Group AB's Degree of Financial Leverage Distribution in the Software Industry

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

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



Cybercom Group AB Degree of Financial Leverage Calculation

Cybercom Group AB's Degree of Financial Leverage for the quarter that ended in Sep. 2015 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.073 (Sep. 2015) / 0.25 (Sep. 2014) - 1 )/( 25.669 (Sep. 2015) / 66.122 (Sep. 2014) - 1 )
=-0.708/-0.6118
=1.16***

* 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.


Cybercom Group AB  (OSTO:CYBE) 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.


Cybercom Group AB Degree of Financial Leverage Related Terms

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Cybercom Group AB (OSTO:CYBE) Business Description

Industry
Traded in Other Exchanges
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Address
Cybercom Group AB is an information technology security consultancy firm. The company manages portals and provides electronic services to its customers. It offers a range of services available via mobile phone. The company also provides security, embedded systems, and telecom management. The company's portal services extend to web sites, extranets, intranets, communities, and mobile solutions. It analyzes a company's purpose, competition, target groups, services, and technical requirements before redesigning its portal. The company provides software solutions for media and electronic business. It maintains customer's portals and networks. Its mobile offerings are solutions for application, portal, payment, device management, internet advisory, use experience, and software office. For applications, it provides framework that provides development of mobile clients and support systems. The mobile portal solution creates a mobile equivalent of a customer's web site. The payment solutions include several payment services and methods. The device management offering facilitates distribution of content and firmware over the internet and over the air. The internet advisory services include consultation and support implementation of mobile strategies. It also provides extensive security offerings for a company intranet, portal, and networks. These products include identity and access management, IT forensics, and security verification. The company also handles physical hardware and computers.