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MeVis Medical Solutions AG (XTER:M3V) Degree of Financial Leverage : 0.26 (As of Mar. 2024)


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What is MeVis Medical Solutions AG 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). MeVis Medical Solutions AG's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 0.26. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for MeVis Medical Solutions AG's Degree of Financial Leverage or its related term are showing as below:

XTER:M3V's Degree of Financial Leverage is ranked better than
79.6% of 642 companies
in the Healthcare Providers & Services industry
Industry Median: 1.02 vs XTER:M3V: 0.26

MeVis Medical Solutions AG Degree of Financial Leverage Historical Data

The historical data trend for MeVis Medical Solutions AG'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.

MeVis Medical Solutions AG Degree of Financial Leverage Chart

MeVis Medical Solutions AG Annual Data
Trend Dec13 Dec14 Dec15 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.04 1.01 1.01 1.02 1.04

MeVis Medical Solutions AG Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 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 1.02 1.02 0.54 1.04 0.26

Competitive Comparison of MeVis Medical Solutions AG's Degree of Financial Leverage

For the Health Information Services subindustry, MeVis Medical Solutions AG'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.


MeVis Medical Solutions AG's Degree of Financial Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, MeVis Medical Solutions AG's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where MeVis Medical Solutions AG's Degree of Financial Leverage falls into.



MeVis Medical Solutions AG Degree of Financial Leverage Calculation

MeVis Medical Solutions AG'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
=( 3.16 (Mar. 2024) / 3.405 (Mar. 2023) - 1 )/( 4.934 (Mar. 2024) / 6.857 (Mar. 2023) - 1 )
=-0.072/-0.2804
=0.26***

* 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.


MeVis Medical Solutions AG  (XTER:M3V) 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.


MeVis Medical Solutions AG Degree of Financial Leverage Related Terms

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MeVis Medical Solutions AG (XTER:M3V) Business Description

Traded in Other Exchanges
Address
Caroline-Herschel-Strasse 1, Bremen, DEU, 28359
MeVis Medical Solutions AG is a provider of medical software products. The company markets its products to equipment manufacturer of medical devices and providers of medical information technology platforms. Its segment includes Digital mammography and Other diagnostics. The Digital mammography segment develops and markets software products which assist in breast diagnostic imaging and intervention. Its Other diagnostics segment consists of digital radiology products. In addition, it also provides the general analysis of radiology images. The company's geographical area of operations includes the United States of America and Europe.

MeVis Medical Solutions AG (XTER:M3V) Headlines

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