What is Samsonite International 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).
Samsonite International's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.63. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Samsonite International's Degree of Financial Leverage or its related term are showing as below:
SMSEY's Degree of Financial Leverage is ranked better than 69.89% of 1066
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 0.99
vs SMSEY: 0.63
Samsonite International Degree of Financial Leverage Historical Data
The historical data trend for Samsonite International'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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Samsonite International Degree of Financial Leverage Chart
Competitive Comparison of Samsonite International's Degree of Financial Leverage
For the Footwear & Accessories subindustry, Samsonite International'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.
Samsonite International's Degree of Financial Leverage Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Samsonite International's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Samsonite International's Degree of Financial Leverage falls into.
Samsonite International Degree of Financial Leverage Calculation
Samsonite International's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:
* 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.
Samsonite International (OTCPK:SMSEY) 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.
Samsonite International Degree of Financial Leverage Related Terms
Thank you for viewing the detailed overview of Samsonite International's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Samsonite International (Samsonite International) Business Description
Samsonite is the world's largest luggage company with a 19.5% market share in 2018. The company produces and sells travel luggage under various brands targeting the mid-market to high-end consumers. The group's key brand is Samsonite, whose market presence is well established, followed by Tumi, the high-end brand acquired in 2016, which alongside mass-market brand American Tourister, are the next largest earnings contributors. The majority of its products are manufactured by third parties, but Samsonite does produce its own select proprietary materials. Except for Tumi, most of its products are sold to retailers, but the acquisition of online retailer eBags in early 2017 is boosting its online sales channel direct to consumers.
Samsonite International (Samsonite International) Headlines
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