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Theravance Biopharma (Theravance Biopharma) Degree of Financial Leverage : 2.37 (As of Dec. 2023)


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What is Theravance Biopharma 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). Theravance Biopharma's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 2.37. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Theravance Biopharma's Degree of Financial Leverage or its related term are showing as below:

TBPH's Degree of Financial Leverage is ranked worse than
88.88% of 1502 companies
in the Biotechnology industry
Industry Median: 0.96 vs TBPH: 2.37

Theravance Biopharma Degree of Financial Leverage Historical Data

The historical data trend for Theravance Biopharma'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.

Theravance Biopharma Degree of Financial Leverage Chart

Theravance Biopharma Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.43 0.12 2.76 7.73 2.37

Theravance Biopharma 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 10.64 15.11 1.93 2.37 -

Competitive Comparison of Theravance Biopharma's Degree of Financial Leverage

For the Biotechnology subindustry, Theravance Biopharma'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.


Theravance Biopharma's Degree of Financial Leverage Distribution in the Biotechnology Industry

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

* The bar in red indicates where Theravance Biopharma's Degree of Financial Leverage falls into.



Theravance Biopharma Degree of Financial Leverage Calculation

Theravance Biopharma's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -1 (Dec. 2023) / 11.85 (Dec. 2022) - 1 )/( -46.919 (Dec. 2023) / -86.446 (Dec. 2022) - 1 )
=-1.0844/-0.4572
=2.37***

* 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.


Theravance Biopharma  (NAS:TBPH) 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.


Theravance Biopharma Degree of Financial Leverage Related Terms

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


Theravance Biopharma (Theravance Biopharma) Business Description

Traded in Other Exchanges
Address
Ugland House, South Church Street, George Town, PO Box 309, Grand Cayman, CYM, KY1-1104
Theravance Biopharma Inc is a diversified biopharmaceutical company focused on the discovery, development, and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small-molecule drugs designed to better meet patient needs. Its research is focused on the areas of inflammation and immunology. The firm applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. The company develops lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD).
Executives
Rhonda Farnum officer: SVP, Comm & Medical Affairs 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Richard A Graham officer: SVP, Development 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Kelly James Connor director 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Susannah Gray director 10770 WATERIDGE CIRCLE SUITE 200, SAN DIEGO CA 92121
Brett A. Grimaud officer: SVP, Gen Counsel and Secretary 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Aziz Sawaf officer: SVP & Chief Financial Officer 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Rick E Winningham director, officer: Chief Executive Officer 901 GATEWAY BOULEVARD, SOUTH SAN FRANCISCO CA 94080
Andrew A. Hindman officer: SVP, Chief Financial Officer C/O ACORDA THERAPEUTICS, INC., 420 SAW MILL RIVER ROAD, ARDSLEY NY 10502
Eli Samaha 10 percent owner ONE WORLD TRADE CENTER, FLOOR 65, NEW YORK NY 10007
Wam Gp Llc 10 percent owner 222 BERKELEY STREET, 16TH FLOOR, BOSTON MA 02116
Andrew M Weiss 10 percent owner 222 BERKELEY STREET, 16TH FLOOR, BOSTON MA 02116
Weiss Asset Management Lp 10 percent owner 222 BERKELEY STREET, 16TH FLOOR, BOSTON MA 02116
Philip D Worboys officer: SVP, Translational Science 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Brett K Haumann officer: VP-Clinical Develop. 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Deepika Pakianathan director 160 BOVET ROAD, SUITE 408, C/O DELPHI VENTURES, SAN MATEO CA 94402

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