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Lands' End (Lands' End) Degree of Financial Leverage : -2.26 (As of Jan. 2024)


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What is Lands' End 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). Lands' End's Degree of Financial Leverage for the quarter that ended in Jan. 2024 was -2.26. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

LE's Degree of Financial Leverage is ranked better than
94.13% of 1074 companies
in the Retail - Cyclical industry
Industry Median: 1.05 vs LE: -2.26

Lands' End Degree of Financial Leverage Historical Data

The historical data trend for Lands' End'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.

Lands' End Degree of Financial Leverage Chart

Lands' End Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.92 3.04 2.01 2.01 -2.26

Lands' End Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 2.01 2.51 8.74 -15.95 -2.26

Competitive Comparison of Lands' End's Degree of Financial Leverage

For the Apparel Retail subindustry, Lands' End'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.


Lands' End's Degree of Financial Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lands' End's Degree of Financial Leverage distribution charts can be found below:

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



Lands' End Degree of Financial Leverage Calculation

Lands' End's Degree of Financial Leverage for the quarter that ended in Jan. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -4.09 (Jan. 2024) / -0.38 (Jan. 2023) - 1 )/( -83.526 (Jan. 2024) / 25.089 (Jan. 2023) - 1 )
=9.7632/-4.3292
=-2.26***

* 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.


Lands' End  (NAS:LE) 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.


Lands' End Degree of Financial Leverage Related Terms

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


Lands' End (Lands' End) Business Description

Traded in Other Exchanges
Address
1 Lands' End Lane, Dodgeville, WI, USA, 53595
Lands' End Inc is a United States-based multi-channel retailer of casual clothing, accessories, and footwear, as well as home products. The company's operating segment includes U.S. eCommerce; International; Outfitters; Third Party and Retail. It generates maximum revenue from the U.S. eCommerce segment. The U.S. eCommerce segment offers products through the company's eCommerce website. Geographically, it derives a majority of its revenue from the United States.
Executives
John Mcclain director C/O THE JONES GROUP INC., 1411 BROADWAY, NEW YORK NY 10018
Angela S. Rieger officer: Chief Transformation Officer LANDS' END, INC., 1 LANDS' END LANE, DODGEVILLE WI 53595
Andrew J. Mclean director, officer: CEO - Designate 77 HOT METAL STREET, PITTSBURGH PA 15203
Edward S Lampert 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOUR FL 33154
Jerome Griffith director, officer: President and CEO C/O TUMI, INC., 1001 DURHAM AVENUE, SOUTH PLAINFIELD NJ 07080
Sarah W. Rasmusen officer: EVP, CHIEF CUSTOMER OFFICER LANDS' END, INC., 1 LANDS' END LANE, DODGEVILLE WI 53595
Jignesh Patel director 1 LANDS' END LANE, DODGEVILLE WI 53595
Chieh Tsai officer: CHIEF PRODUCT OFFICER LANDS' END, INC., 1 LANDS' END LANE, DODGEVILLE WI 53595
Peter L Gray officer: EVP & CAO C/O TUMI HOLDINGS INC, 1001 DURHAM AVE, SOUTH PLAINFIELD NJ 07080
James F Gooch officer: EVP, COO & CFO C/O 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192
Mccracken Bernard Louis Iii officer: VP, Chief Accounting Officer 500 PLAZA DRIVE, SECAUCUS NJ 07094
Maureen Mullen director LANDS' END, INC., 1 LANDS' END LANE, DODGEVILLE WI 53595
Gill Brown Hong officer: EVP, CMO & Head of Intl. 1 LANDS' END LANE, DODGEVILLE WI 53595
Jonah Staw director 951 LONGRIDGE ROAD, OAKLAND CA 94610
Robert A Bowman director C/O MLB COM, 75 9TH AVE 5TH FLOOR, NEW YORK NY 10011