AMTD IDEA Debt
| AMTD Stock | USD 1.26 0.07 5.88% |
AMTD IDEA Group holds a debt-to-equity ratio of 0.018. . AMTD IDEA's financial risk is the risk to AMTD IDEA stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
AMTD IDEA's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. AMTD IDEA's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps AMTD Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect AMTD IDEA's stakeholders.
For most companies, including AMTD IDEA, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for AMTD IDEA Group, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, AMTD IDEA's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that AMTD IDEA's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which AMTD IDEA is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of AMTD IDEA to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, AMTD IDEA is said to be less leveraged. If creditors hold a majority of AMTD IDEA's assets, the Company is said to be highly leveraged.
AMTD |
AMTD IDEA Bond Ratings
AMTD IDEA Group financial ratings play a critical role in determining how much AMTD IDEA have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for AMTD IDEA's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (1.70) | Possible Manipulator | View |
AMTD IDEA Group Debt to Cash Allocation
Many companies such as AMTD IDEA, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
AMTD IDEA Group currently holds 30.37 M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the company is not taking enough advantage from borrowing. AMTD IDEA Group has a current ratio of 8.88, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about AMTD IDEA's use of debt, we should always consider it together with its cash and equity.AMTD IDEA Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the AMTD IDEA's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of AMTD IDEA, which in turn will lower the firm's financial flexibility.AMTD IDEA Corporate Bonds Issued
Most AMTD bonds can be classified according to their maturity, which is the date when AMTD IDEA Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understaning AMTD IDEA Use of Financial Leverage
AMTD IDEA's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures AMTD IDEA's total debt position, including all outstanding debt obligations, and compares it with AMTD IDEA's equity. Financial leverage can amplify the potential profits to AMTD IDEA's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if AMTD IDEA is unable to cover its debt costs.
AMTD IDEA Group, an investment holding company, engages in investment banking activities in Hong Kong, Mainland China, the United States, and internationally. AMTD IDEA Group operates as a subsidiary of AMTD Group Company Limited. Amtd Idea operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs people. Please read more on our technical analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether AMTD IDEA Group is a strong investment it is important to analyze AMTD IDEA's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact AMTD IDEA's future performance. For an informed investment choice regarding AMTD Stock, refer to the following important reports:Check out the analysis of AMTD IDEA Fundamentals Over Time. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AMTD IDEA. If investors know AMTD will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AMTD IDEA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of AMTD IDEA Group is measured differently than its book value, which is the value of AMTD that is recorded on the company's balance sheet. Investors also form their own opinion of AMTD IDEA's value that differs from its market value or its book value, called intrinsic value, which is AMTD IDEA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AMTD IDEA's market value can be influenced by many factors that don't directly affect AMTD IDEA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AMTD IDEA's value and its price as these two are different measures arrived at by different means. Investors typically determine if AMTD IDEA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AMTD IDEA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.