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Tango Therapeutics (Tango Therapeutics) Degree of Financial Leverage : -1.36 (As of Mar. 2024)


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What is Tango Therapeutics 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). Tango Therapeutics's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was -1.36. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

TNGX's Degree of Financial Leverage is ranked better than
91.93% of 1499 companies
in the Biotechnology industry
Industry Median: 0.97 vs TNGX: -1.36

Tango Therapeutics Degree of Financial Leverage Historical Data

The historical data trend for Tango Therapeutics'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.

Tango Therapeutics Degree of Financial Leverage Chart

Tango Therapeutics Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- 5.08 0.78 -4.37

Tango Therapeutics Quarterly Data
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 0.72 0.42 -0.49 -4.37 -1.36

Competitive Comparison of Tango Therapeutics's Degree of Financial Leverage

For the Biotechnology subindustry, Tango Therapeutics'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.


Tango Therapeutics's Degree of Financial Leverage Distribution in the Biotechnology Industry

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

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



Tango Therapeutics Degree of Financial Leverage Calculation

Tango Therapeutics'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
=( -1.11 (Mar. 2024) / -1.26 (Mar. 2023) - 1 )/( -126.141 (Mar. 2024) / -115.978 (Mar. 2023) - 1 )
=-0.119/0.0876
=-1.36***

* 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.


Tango Therapeutics  (NAS:TNGX) 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.


Tango Therapeutics Degree of Financial Leverage Related Terms

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Tango Therapeutics (Tango Therapeutics) Business Description

Traded in Other Exchanges
N/A
Address
201 Brookline Avenue, Suite 901, Boston, MA, USA, 02215
Tango Therapeutics Inc is a biotechnology company. It is dedicated towards discovering novel drug targets and delivering the next generation of precision medicine for the treatment of cancer. It is engaged in the business of discovering and developing precision oncology therapies.
Executives
Adam Crystal officer: See Remarks C4 THERAPEUTICS, INC., 490 ARSENAL WAY, SUITE 200, WATERTOWN MA 02472
Boxer Capital, Llc other: See remarks 12860 EL CAMINO REAL, SUITE 300, SAN DIEGO CA 92130
Ecor1 Capital, Llc 10 percent owner 357 TEHAMA STREET #3, SAN FRANCISCO CA 94103
John B Ketchum director TANGO THERAPEUTICS, INC., 201 BROOKLINE AVE., SUITE 901, BOSTON MA 02215
Joseph Lewis other: See remarks PO BOX N7776, LYFORD BAHAMAS
Trv Gp Vi, Llc director 201 BROOKLINE AVE., BOSTON MA 02215
Third Rock Ventures Gp Vi, L.p. director 201 BROOKLINE AVE, SUITE 1401, BOSTON MA 02215
Third Rock Ventures Vi, L.p. director 29 NEWBURY STREET, 3RD FLOOR, BOSTON MA 02116
Aaron I. Davis other: See remarks 12860 EL CAMINO REAL, SUITE 300, SAN DIEGO CA 92130
Boxer Asset Management Inc. other: See remarks CAY HOUSE, EP TAYLOR DRIVE N7776, LYFORD CAY, NEW PROVIDENCE C5 00000
Mva Investors, Llc other: See remarks 12860 EL CAMINO REAL, SUITE 300, SAN DIEGO CA 92130
Aaron Weitzman officer: Chief Medical Officer TANGO THERAPEUTICS, INC., 201 BROOKLINE AVE., SUITE 901, BOSTON MA 02215
Marc Rudoltz officer: Chief Medical Officer TANGO THERAPEUTICS, INC., 100 BINNEY STREET, UNIT 700, CAMBRIDGE MA 02142
Douglas Barry officer: See Remarks TANGO THERAPEUTICS, INC., 100 BINNEY STREET, UNIT 700, CAMBRIDGE MA 02142
Third Rock Ventures Iv, L.p. 10 percent owner 29 NEWBURY STREET, 3RD FLOOR, BOSTON MA 02116