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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Sight Sciences's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.94. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Sight Sciences's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Sight Sciences'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.
Sight Sciences Annual Data | |||||||||||||||
Trend | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 1.20 | 0.67 | 0.61 | 0.55 | 0.95 |
Sight Sciences Quarterly Data | |||||||||||||||||||
Dec18 | 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 | -0.12 | 1.31 | 0.96 | 0.95 | 0.94 |
For the Medical Devices subindustry, Sight Sciences'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.
For the Medical Devices & Instruments industry and Healthcare sector, Sight Sciences's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Sight Sciences's Degree of Financial Leverage falls into.
Sight Sciences'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 |
= | ( -1.12 (Mar. 2024) / -1.66 (Mar. 2023) - 1 ) | / | ( -49.297 (Mar. 2024) / -75.299 (Mar. 2023) - 1 ) | |
= | -0.3253 | / | -0.3453 | |
= | 0.94*** |
* 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.
Sight Sciences (NAS:SGHT) 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.
Thank you for viewing the detailed overview of Sight Sciences's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Jeremy B. Hayden | officer: Chief Legal Officer | 2 MUSICK, 2 MUSICK, IRVINE CA 92618 |
Sam Boong Park | officer: Chief Operating Officer | C/O SIGHT SCIENCES, INC., 4040 CAMPBELL AVENUE, SUITE 100, MENLO PARK CA 94025 |
Paul Badawi | director, 10 percent owner, officer: President and CEO | C/O SIGHT SCIENCES, INC., 4040 CAMPBELL AVENUE, SUITE 100, MENLO PARK CA 94025 |
David Badawi | director, officer: Chief Technology Officer | C/O SIGHT SCIENCES, INC., 4040 CAMPBELL AVENUE, SUITE 100, MENLO PARK CA 94025 |
D1 Capital Partners L.p. | 10 percent owner | 9 WEST 57TH STREET, 36TH FLOOR, NEW YORK NY 10019 |
Staffan Encrantz | director | C/O SIGHT SCIENCES, INC., 4040 CAMPBELL AVENUE, SUITE 100, MENLO PARK CA 94025 |
Matthew Link | officer: Chief Commercial Officer | 7475 LUSK BLVD, SAN DIEGO CA 92121 |
Catherine Mazzacco | director | C/O KRYSTAL BIOTECH, INC., 2100 WHARTON STREET, SUITE 701, PITTSBURGH PA 15203 |
Alison Bauerlein | officer: See remarks | 326 BOLLAY DRIVE, GOLETA CA 93117 |
James Rodberg | officer: See Remarks | C/O SIGHT SCIENCES, INC., 4040 CAMPBELL AVE., SUITE 100, MENLO PARK CA 94025 |
Tamara Fountain | director | C/O RXSIGHT, INC., 100 COLUMBIA, ALISO VIEJO CA 92656 |
Brenda Jane Larsen-becker | director | C/O SIGHT SCIENCES, INC., 3000 SAND HILL ROAD, BUILDING 3, STE 105, MENLO PARK CA 94025 |
Jesse Selnick | officer: Chief Financial Officer | C/O SIGHT SCIENCES, INC., 4040 CAMPBELL AVENUE, SUITE 100, MENLO PARK CA 94025 |
Daniel S. Sundheim | 10 percent owner | C/O D1 CAPITAL PARTNERS L.P., 9 WEST 57TH STREET, 36TH FLOOR, NEW YORK NY 10019 |
Erica J. Rogers | director | C/O SILK ROAD MEDICAL, INC., 1213 INNSBRUCK DRIVE, SUNNYVALE CA 94089 |
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