Bridger Aerospace Current Debt

BAER Stock   2.71  0.01  0.37%   
At this time, Bridger Aerospace's Short and Long Term Debt is relatively stable compared to the past year. As of 11/26/2024, Debt To Equity is likely to grow to 8.06, while Net Debt is likely to drop slightly above 124.6 M. . Bridger Aerospace's financial risk is the risk to Bridger Aerospace stockholders that is caused by an increase in debt.
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
0.75578308
Current Value
0.43
Quarterly Volatility
0.11285843
 
Credit Downgrade
 
Yuan Drop
 
Covid
Given that Bridger Aerospace'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 Bridger Aerospace 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 Bridger Aerospace to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Bridger Aerospace is said to be less leveraged. If creditors hold a majority of Bridger Aerospace's assets, the Company is said to be highly leveraged.
At this time, Bridger Aerospace's Total Current Liabilities is relatively stable compared to the past year. As of 11/26/2024, Change To Liabilities is likely to grow to about 13.9 M, while Liabilities And Stockholders Equity is likely to drop slightly above 249.3 M.
  
Check out the analysis of Bridger Aerospace Fundamentals Over Time.

Bridger Aerospace Financial Rating

Bridger Aerospace Group financial ratings play a critical role in determining how much Bridger Aerospace 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 Bridger Aerospace's borrowing costs.
Piotroski F Score
4
PoorView
Beneish M Score
(3.79)
Unlikely ManipulatorView

Bridger Aerospace Total Assets Over Time

Bridger Aerospace Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Bridger Aerospace 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.

Bridger Aerospace Debt Ratio

    
  43.0   
It seems slightly above 57% of Bridger Aerospace's assets are financed through equity. 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 Bridger Aerospace's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Bridger Aerospace, which in turn will lower the firm's financial flexibility.

Bridger Short Long Term Debt Total

Short Long Term Debt Total

148.3 Million

At this time, Bridger Aerospace's Short and Long Term Debt Total is relatively stable compared to the past year.

Understaning Bridger Aerospace Use of Financial Leverage

Bridger Aerospace's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Bridger Aerospace's current equity. If creditors own a majority of Bridger Aerospace's assets, the company is considered highly leveraged. Understanding the composition and structure of Bridger Aerospace's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last ReportedProjected for Next Year
Short and Long Term Debt Total214.6 M148.3 M
Net Debt177.7 M124.6 M
Long Term Debt204.6 M143.5 M
Short and Long Term Debt2.1 M2.2 M
Short Term Debt4.3 M2.8 M
Net Debt To EBITDA(4.41)(4.63)
Debt To Equity 7.67  8.06 
Interest Debt Per Share 5.08  2.76 
Debt To Assets 0.76  0.43 
Long Term Debt To Capitalization 0.88  0.51 
Total Debt To Capitalization 0.88  0.51 
Debt Equity Ratio 7.67  8.06 
Debt Ratio 0.76  0.43 
Cash Flow To Debt Ratio(0.13)(0.12)
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Pair Trading with Bridger Aerospace

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Bridger Aerospace position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bridger Aerospace will appreciate offsetting losses from the drop in the long position's value.

Moving against Bridger Stock

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The ability to find closely correlated positions to Bridger Aerospace could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bridger Aerospace when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Bridger Aerospace - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bridger Aerospace Group to buy it.
The correlation of Bridger Aerospace is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bridger Aerospace moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bridger Aerospace moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Bridger Aerospace can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Additional Tools for Bridger Stock Analysis

When running Bridger Aerospace's price analysis, check to measure Bridger Aerospace's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bridger Aerospace is operating at the current time. Most of Bridger Aerospace's value examination focuses on studying past and present price action to predict the probability of Bridger Aerospace's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bridger Aerospace's price. Additionally, you may evaluate how the addition of Bridger Aerospace to your portfolios can decrease your overall portfolio volatility.

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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.