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Wheels Up Experience (Wheels Up Experience) Degree of Financial Leverage : 2.71 (As of Mar. 2024)


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What is Wheels Up Experience 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). Wheels Up Experience's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 2.71. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Wheels Up Experience's Degree of Financial Leverage or its related term are showing as below:

UP's Degree of Financial Leverage is ranked worse than
90.06% of 946 companies
in the Transportation industry
Industry Median: 1.04 vs UP: 2.71

Wheels Up Experience Degree of Financial Leverage Historical Data

The historical data trend for Wheels Up Experience'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.

Wheels Up Experience Degree of Financial Leverage Chart

Wheels Up Experience Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
- 0.94 0.94 1.01 2.12

Wheels Up Experience Quarterly Data
Dec19 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 1.06 1.07 0.88 2.12 2.71

Competitive Comparison of Wheels Up Experience's Degree of Financial Leverage

For the Airports & Air Services subindustry, Wheels Up Experience'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.


Wheels Up Experience's Degree of Financial Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Wheels Up Experience's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Wheels Up Experience's Degree of Financial Leverage falls into.



Wheels Up Experience Degree of Financial Leverage Calculation

Wheels Up Experience'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
=( -10.046 (Mar. 2024) / -23.47 (Mar. 2023) - 1 )/( -435.142 (Mar. 2024) / -551.382 (Mar. 2023) - 1 )
=-0.572/-0.2108
=2.71***

* 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.


Wheels Up Experience  (NYSE:UP) 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.


Wheels Up Experience Degree of Financial Leverage Related Terms

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Wheels Up Experience (Wheels Up Experience) Business Description

Traded in Other Exchanges
N/A
Address
601 West 26th Street, Suite 900, New York, NY, USA, 10001
Wheels Up Experience Inc is the provider of on-demand private aviation in the United States. It is pioneering data and technology-driven solutions that connect consumers to safety-vetted and verified private aircraft. Its offerings consist of multi-tiered membership programs, on-demand flights across all private aircraft cabin categories, aircraft management, retail and wholesale charter, aircraft sales, corporate flight solutions, special missions, signature events and experiences, and commercial travel benefits through its strategic partnership with Delta.
Executives
Donald Lee Moak director 601 WEST 26TH STREET, SUITE 900, NEW YORK NY 10001
Knighthead Opportunities Capital Management, Llc 10 percent owner 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Certares Opportunities Llc 10 percent owner 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017
Andrew Stephen Davis director 500 OLD DOMINION WAY, THOMASVILLE NC 27360
Adam Ross Zirkin director 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Jeffrey Nedelman director 8501 WILLIAMS ROAD, ESTERO FL 33928
Alain Bellemare director C/O DELTA AIR LINES, INC., DEPT. 981, P.O. BOX 20574, ATLANTA GA 30320
Cantor Adam Corey director 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Ck Wheels Llc 10 percent owner 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
George N Mattson director C/O DELTA AIR LINES, INC., P.O. BOX 20574, DEPT. 981, ATLANTA GA 30320
Ck Opportunities Gp, Llc 10 percent owner 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Zachary George Lazar director 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017
Mark Briffa officer: Chief Commercial Officer 601 WEST 26TH ST. SUITE 900, NEW YORK NY 10001
Daniel C. Janki director 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Kristen Lauria officer: See Remarks 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Z, PHILADELPHIA PA 19192

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