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SRPT (Sarepta Therapeutics) Degree of Financial Leverage : 2.09 (As of Mar. 2025)


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What is Sarepta Therapeutics 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). Sarepta Therapeutics's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 2.09. The higher Degree of Financial Leverage, the more volatile earnings will be.

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

SRPT's Degree of Financial Leverage is ranked worse than
86.14% of 1429 companies
in the Biotechnology industry
Industry Median: 0.95 vs SRPT: 2.09

Sarepta Therapeutics Degree of Financial Leverage Historical Data

The historical data trend for Sarepta Therapeutics'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.

Sarepta Therapeutics Degree of Financial Leverage Chart

Sarepta Therapeutics Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.97 0.97 0.71 1.26 0.89

Sarepta Therapeutics Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.98 0.98 0.97 0.89 2.09

Competitive Comparison of Sarepta Therapeutics's Degree of Financial Leverage

For the Biotechnology subindustry, Sarepta Therapeutics'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.


Sarepta Therapeutics's Degree of Financial Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Sarepta Therapeutics's Degree of Financial Leverage distribution charts can be found below:

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


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Sarepta Therapeutics Degree of Financial Leverage Calculation

Sarepta Therapeutics's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -2.69 (Mar. 2025) / 0.4 (Mar. 2024) - 1 )/( -145.464 (Mar. 2025) / 53.913 (Mar. 2024) - 1 )
=-7.725/-3.6981
=2.09***

* 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.


Sarepta Therapeutics  (NAS:SRPT) 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.


Sarepta Therapeutics Degree of Financial Leverage Related Terms

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Sarepta Therapeutics Business Description

Address
215 First Street, Suite 415, Cambridge, MA, USA, 02142
Sarepta Therapeutics Inc is a biotechnology company focused on treating rare, infectious, and other diseases. It targets a broad range of diseases while focusing on the rapid development of its drug candidates. Sarepta's involves proprietary RNA-targeted technology platforms to be used for developing novel pharmaceutical products to treat a broad range of diseases and address key unmet medical needs. The company uses third-party contractors to manufacture its product candidates. Majority of company's product candidates are at an early stage of development.
Executives
Claude Nicaise director 215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142
Wigzell Hans Lennart Rudolf director OSKAR BAECKSTROMSV.11, HAGERSTEN V7 12935
Kathryn Jean Boor director 3736 S. MAIN STREET, MARION NY 14505
Ian Michael Estepan officer: Chief Financial Officer 215 FIRST STREET, STE 415, CAMBRIDGE MA 02142
Michael Andrew Chambers director 215 FIRST STREET, CAMBRIDGE MA 02142
Bilal Arif officer: Chief Tech Ops Officer 215 FIRST STREET, CAMBRIDGE MA 02129
Ryan Edward Brown officer: SVP, General Counsel 215 FIRST STREET, STE 415, CAMBRIDGE MA 02142
Stephen Mayo director 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Richard Barry director 285 MARGALITA DRIVE, SAN RAFAEL CA 94901
Douglas S Ingram director, officer: President & CEO 2525 DUPONT DR, IRVINE CA 92612
Louise Rodino-klapac officer: Chief Scientific Officer 215 FIRST STREET, STE 415, CAMBRIDGE MA 02142
M Kathleen Behrens director 6701 KAISER DRIVE, FREMONT CA 94555
Joseph Bratica officer: Principal Financial Officer 215 FIRST STREET, STE 415, CAMBRIDGE MA 02142
David T Howton officer: SVP, General Counsel VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
John C Martin director 333 LAKESIDE DRIVE, FOSTER CITY X1 94404