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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Quest Resource Holding's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was 0.16. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Quest Resource Holding's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for Quest Resource Holding'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.
Quest Resource Holding Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 0.75 | -5.76 | 0.47 | 7.08 | 0.16 |
Quest Resource Holding Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Degree of Financial Leverage | Get a 7-Day Free Trial | 7.08 | 14.80 | -8.06 | -2.72 | 0.16 |
For the Waste Management subindustry, Quest Resource Holding'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.
For the Waste Management industry and Industrials sector, Quest Resource Holding's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Quest Resource Holding's Degree of Financial Leverage falls into.
Quest Resource Holding'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 |
= | ( -0.36 (Dec. 2023) / -0.31 (Dec. 2022) - 1 ) | / | ( 2.825 (Dec. 2023) / 1.405 (Dec. 2022) - 1 ) | |
= | 0.1613 | / | 1.0107 | |
= | 0.16*** |
* 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.
Quest Resource Holding (NAS:QRHC) 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.
Thank you for viewing the detailed overview of Quest Resource Holding's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Audrey Dunning | director | 242 MEADOWBROOK DRIVE, CRANBERRY TOWNSHIP PA 16066 |
David P Sweitzer | officer: EVP and COO | 3481 PLANO PARKWAY, THE COLONY TX 75056 |
Brett Wade Johnston | officer: Sr. VP of Finance and CFO | C/O QUEST RESOURCE HOLDING CORPORATION, 3481 PLANO PARKWAY, THE COLONY TX 75056 |
S. Ray Hatch | director, officer: President and CEO | 3481 PLANO PARKWAY, THE COLONY TX 75056 |
Wynnefield Partners Small Cap Value Lp I | 10 percent owner | 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123 |
Miller Ronald L. Jr. | director | C/O INFINITY RESOURCES HOLDINGS CORP., 1375 NORTH SCOTTSDALE ROAD, SUITE 140, SCOTTSDALE AZ 85257 |
Alan D. Allred | officer: See Remarks | C/O QUEST RESOURCE HOLDING CORPORATION, 3481 PLANO PARKWAY, THE COLONY TX 75056 |
Laurie L Latham | officer: Senior VP and CFO | C/O VIEWCAST COM, 2665 VILLA CREEK DRIVE, DALLAS TX 75234 |
Daniel M. Friedberg | director, 10 percent owner | C/O SAGARD CAPITAL, 325 GREENWICH AVENUE, GREENWICH CT 06830 |
Barry M Kitt | 10 percent owner | |
Glenn Culpepper | director | 6363 S FIDDLER'S GREEN CIRCLE, GREENWOOD VILLAGE CO 80111 |
Stephen Coskery | officer: See Remarks | C/O QUEST RESOURCE HOLDING CORPORATION, 3481 PLANO PARKWAY, THE COLONY TX 75056 |
Joshua Landes | 10 percent owner | |
Wynnefield Partners Small Cap Value Lp | 10 percent owner | 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123 |
Nelson Obus | 10 percent owner |
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