Apogee Enterprises Debt
| APOG Stock | USD 41.44 0.02 0.05% |
Apogee Enterprises holds a debt-to-equity ratio of 0.832. At this time, Apogee Enterprises' Short Term Debt is most likely to decrease significantly in the upcoming years. The Apogee Enterprises' current Long Term Debt is estimated to increase to about 98.2 M, while Short and Long Term Debt is projected to decrease to roughly 5.9 M. Apogee Enterprises' financial risk is the risk to Apogee Enterprises stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Apogee Enterprises' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Apogee Enterprises' 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 Apogee Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Apogee Enterprises' stakeholders.
For most companies, including Apogee Enterprises, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Apogee Enterprises, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Apogee Enterprises' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
The current Total Current Liabilities is estimated to decrease to about 165.3 M. The current Liabilities And Stockholders Equity is estimated to decrease to about 582.2 MCheck out the analysis of Apogee Enterprises Financial Statements. Apogee Enterprises Bond Ratings
Apogee Enterprises financial ratings play a critical role in determining how much Apogee Enterprises 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 Apogee Enterprises' borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.44) | Unlikely Manipulator | View |
Apogee Enterprises Debt to Cash Allocation
Many companies such as Apogee Enterprises, 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.
Apogee Enterprises currently holds 351.92 M in liabilities with Debt to Equity (D/E) ratio of 0.83, which is about average as compared to similar companies. Apogee Enterprises has a current ratio of 1.78, which is within standard range for the sector. Note, when we think about Apogee Enterprises' use of debt, we should always consider it together with its cash and equity.Apogee Enterprises Total Assets Over Time
Apogee Enterprises Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Apogee Enterprises uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Apogee Enterprises Debt Ratio | 18.0 |
Apogee Enterprises Corporate Bonds Issued
Most Apogee bonds can be classified according to their maturity, which is the date when Apogee Enterprises 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.
Apogee Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Apogee Enterprises Use of Financial Leverage
Apogee Enterprises' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Apogee Enterprises' total debt position, including all outstanding debt obligations, and compares it with Apogee Enterprises' equity. Financial leverage can amplify the potential profits to Apogee Enterprises' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Apogee Enterprises is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 106.2 M | 107.7 M | |
| Net Debt | 69 M | 76.5 M | |
| Short Term Debt | 12.3 M | 17.7 M | |
| Long Term Debt | 62 M | 98.2 M | |
| Long Term Debt Total | 244.4 M | 142.6 M | |
| Short and Long Term Debt | 6.2 M | 5.9 M | |
| Net Debt To EBITDA | 2.15 | 2.26 | |
| Debt To Equity | 0.53 | 0.44 | |
| Interest Debt Per Share | 10.54 | 11.06 | |
| Debt To Assets | 0.24 | 0.18 | |
| Long Term Debt To Capitalization | 0.29 | 0.26 | |
| Total Debt To Capitalization | 0.35 | 0.28 | |
| Debt Equity Ratio | 0.53 | 0.44 | |
| Debt Ratio | 0.24 | 0.18 | |
| Cash Flow To Debt Ratio | 0.39 | 0.37 |
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Check out the analysis of Apogee Enterprises Financial Statements. For more detail on how to invest in Apogee Stock please use our How to Invest in Apogee Enterprises guide.You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Can Building Products industry sustain growth momentum? Does Apogee have expansion opportunities? Factors like these will boost the valuation of Apogee Enterprises. If investors know Apogee will grow in the future, the company's valuation will be higher. Determining accurate worth demands scrutiny of both present operating results and projected expansion capacity. Evaluating Apogee Enterprises demands reviewing these metrics collectively while recognizing certain factors exert disproportionate influence.
Quarterly Earnings Growth (0.20) | Dividend Share 1.04 | Earnings Share 1.87 | Revenue Per Share | Quarterly Revenue Growth 0.021 |
Investors evaluate Apogee Enterprises using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Apogee Enterprises' intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Market participants employ diverse analytical approaches to determine fair value and identify buying opportunities when prices dip below calculated worth. External factors like market trends, sector rotation, and investor psychology can cause Apogee Enterprises' market price to deviate significantly from intrinsic value.
Understanding that Apogee Enterprises' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Apogee Enterprises represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Apogee Enterprises' market price signifies the transaction level at which participants voluntarily complete trades.
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.