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Sprint (Sprint) Degree of Financial Leverage : 0.00 (As of Dec. 2019)


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What is Sprint 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). Sprint's Degree of Financial Leverage for the quarter that ended in Dec. 2019 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

S's Degree of Financial Leverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.04
* Ranked among companies with meaningful Degree of Financial Leverage only.

Sprint Degree of Financial Leverage Historical Data

The historical data trend for Sprint'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.

Sprint Degree of Financial Leverage Chart

Sprint Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Mar15 Mar16 Mar17 Mar18 Mar19
Degree of Financial Leverage
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Sprint Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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Competitive Comparison of Sprint's Degree of Financial Leverage

For the Telecom Services subindustry, Sprint'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.


Sprint's Degree of Financial Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Sprint's Degree of Financial Leverage distribution charts can be found below:

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



Sprint Degree of Financial Leverage Calculation

Sprint's Degree of Financial Leverage for the quarter that ended in Dec. 2019 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.66 (Dec. 2019) / 0.08 (Dec. 2018) - 1 )/( -846 (Dec. 2019) / 2452 (Dec. 2018) - 1 )
=-9.25/-1.345
=6.88***

* 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.


Sprint  (NYSE:S) 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.


Sprint Degree of Financial Leverage Related Terms

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Sprint (Sprint) Business Description

Traded in Other Exchanges
N/A
Address
6200 Sprint Parkway, Overland Park, KS, USA, 66251
A decade of operational problems has considerably diminished Sprint's position in the wireless industry. It is now the fourth- largest carrier in the United States, serving 26 million postpaid and 9 million prepaid phone customers directly and 13 million via wholesale channels. Over the past five years, the firm's share of the postpaid phone market has declined about 1 percentage point to 12%, leaving it about three fourths the size of T-Mobile U.S., the next smallest carrier. About 4% of sales come from the wireline unit, which provides phone and data services to the wireless unit and external customers. Japanese firm Softbank took a 78% stake in Sprint through the purchase of existing Sprint shares and a $5 billion equity infusion in 2013; it has since increased its stake to 85%.