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Scholar Rock Holding (Scholar Rock Holding) Degree of Financial Leverage : -1.45 (As of Mar. 2024)


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What is Scholar Rock Holding 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). Scholar Rock Holding's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was -1.45. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Scholar Rock Holding's Degree of Financial Leverage or its related term are showing as below:

SRRK's Degree of Financial Leverage is ranked better than
92.26% of 1499 companies
in the Biotechnology industry
Industry Median: 0.97 vs SRRK: -1.45

Scholar Rock Holding Degree of Financial Leverage Historical Data

The historical data trend for Scholar Rock Holding'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.

Scholar Rock Holding Degree of Financial Leverage Chart

Scholar Rock Holding Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial -4.41 0.89 0.56 -10.66 -0.46

Scholar Rock Holding 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 -0.30 -1.17 -1.13 -0.46 -1.45

Competitive Comparison of Scholar Rock Holding's Degree of Financial Leverage

For the Biotechnology subindustry, Scholar Rock Holding'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.


Scholar Rock Holding's Degree of Financial Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Scholar Rock Holding's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Scholar Rock Holding's Degree of Financial Leverage falls into.



Scholar Rock Holding Degree of Financial Leverage Calculation

Scholar Rock Holding'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
=( -2.09 (Mar. 2024) / -2.56 (Mar. 2023) - 1 )/( -189.205 (Mar. 2024) / -167.946 (Mar. 2023) - 1 )
=-0.1836/0.1266
=-1.45***

* 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.


Scholar Rock Holding  (NAS:SRRK) 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.


Scholar Rock Holding Degree of Financial Leverage Related Terms

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Scholar Rock Holding (Scholar Rock Holding) Business Description

Traded in Other Exchanges
Address
301 Binney Street, 3rd Floor, Cambridge, MA, USA, 02142
Scholar Rock Holding Corp is a biopharmaceutical company. It is engaged in the discovery and development of innovative medicines for the treatment of serious diseases including neuromuscular disorders, cancer, fibrosis, and anemia. Geographically, the company primarily operates in the United States. The company's lead product candidate is Apitegroma which is a highly selective, fully human, monoclonal antibody, with a mechanism of action that results in inhibition of the activation of the growth factor, myostatin, in skeletal muscle. Its other product comprises SRK-181, an inhibitor of the activation of latent transforming growth factor beta-1 ("TGF?1"), for the treatment of cancers that are resistant to anti-PD-(L)1 antibody therapies.
Executives
Mo Qatanani officer: SVP and Head of Research 301 BINNEY STREET, 3RD FLOOR, C/O SCHOLAR ROCK HOLDING CORP, CAMBRIDGE MA 02142
Caryn Parlavecchio officer: CHRO SCHOLAR ROCK HOLDING CORPORATION, 301 BINNEY STREET, 3RD FLOOR, CAMBRIDGE MA 02142
Junlin Ho officer: General Counsel 301 BINNEY STREET, CAMBRIDGE MA 02142
Edward H Myles director C/O AMAG PHARMACEUTICALS, INC., 1100 WINTER STREET, WALTHAM MA 02451
Samsara Biocapital Gp, Llc 10 percent owner 251 CHURCHILL AVENUE, PALO ALTO CA 94301
Srinivas Akkaraju director 565 EVERETT AVENUE, PALO ALTO CA 94301
Invus Public Equities, L.p. 10 percent owner C/O THE INVUS GROUP, LLC, 750 LEXINGTON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Tracey Sacco officer: Chief Commercial Officer 301 BINNEY STREET, 3RD FLOOR, C/O SCHOLAR ROCK HOLDING CORP, CAMBRIDGE MA 02142
Richard Brudnick director BIOVERATIV INC., 225 SECOND AVENUE, WALTHAM MA 02451
Jing L. Marantz officer: Chief Medical Officer C/O KRYSTAL BIOTECH, INC., 2100 WHARTON STREET, SUITE 701, PITTSBURGH PA 15203
Jay T. Backstrom officer: CEO-Elect SCHOLAR ROCK HOLDING CORPORATION, 301 BINNEY STREET, 3RD FLOOR, CAMBRIDGE MA 02142
Amir Nashat director 10835 ROAD TO THE CURE, SUITE 205, SAN DIEGO CA 92121
Samsara Biocapital, L.p. 10 percent owner 628 MIDDLEFIELD ROAD, PALO ALTO CA 94301
Artal Group S.a. 10 percent owner VALLEY PARK, 44, RUE DE LA VALLEE, LUXEMBOURG N4 L-2661
Artal International S.c.a. 10 percent owner VALLEY PARK, 44, RUE DE LA VALLEE, LUXEMBOURG N4 L-2661