Brookfield Infrastructure Debt
| BIPC Stock | USD 50.58 0.68 1.36% |
Brookfield Infrastructure holds a debt-to-equity ratio of 1.076. At present, Brookfield Infrastructure's Short and Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Interest Debt Per Share is expected to grow to 127.38, whereas Short and Long Term Debt Total is forecasted to decline to about 7.3 B. With a high degree of financial leverage come high-interest payments, which usually reduce Brookfield Infrastructure's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Brookfield Infrastructure'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. Brookfield Infrastructure'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 Brookfield Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Brookfield Infrastructure's stakeholders.
Brookfield Infrastructure Quarterly Net Debt |
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For most companies, including Brookfield Infrastructure, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Brookfield Infrastructure Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Brookfield Infrastructure'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 Brookfield Infrastructure'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 Brookfield Infrastructure 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 Brookfield Infrastructure to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Brookfield Infrastructure is said to be less leveraged. If creditors hold a majority of Brookfield Infrastructure's assets, the Company is said to be highly leveraged.
At present, Brookfield Infrastructure's Change To Liabilities is projected to increase significantly based on the last few years of reporting. Brookfield | Build AI portfolio with Brookfield Stock |
Brookfield Infrastructure Bond Ratings
Brookfield Infrastructure Corp financial ratings play a critical role in determining how much Brookfield Infrastructure 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 Brookfield Infrastructure's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (2.77) | Unlikely Manipulator | View |
Brookfield Infrastructure Debt to Cash Allocation
As Brookfield Infrastructure Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Brookfield Infrastructure's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Brookfield Infrastructure Corp currently holds 13.27 B in liabilities with Debt to Equity (D/E) ratio of 1.08, which is about average as compared to similar companies. Brookfield Infrastructure has a current ratio of 0.25, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Brookfield Infrastructure's use of debt, we should always consider it together with its cash and equity.Brookfield Infrastructure Common Stock Shares Outstanding Over Time
Brookfield Infrastructure Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Brookfield Infrastructure 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.Brookfield Infrastructure Debt Ratio | 34.0 |
Brookfield Infrastructure Corporate Bonds Issued
Most Brookfield bonds can be classified according to their maturity, which is the date when Brookfield Infrastructure Corp 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.
Brookfield Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Brookfield Infrastructure Use of Financial Leverage
Brookfield Infrastructure's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Brookfield Infrastructure's total debt position, including all outstanding debt obligations, and compares it with Brookfield Infrastructure's equity. Financial leverage can amplify the potential profits to Brookfield Infrastructure's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Brookfield Infrastructure is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 13.3 B | 7.3 B | |
| Net Debt | 17.9 B | 18.8 B | |
| Long Term Debt | 13.2 B | 6.6 B | |
| Long Term Debt Total | 4.1 B | 3.7 B | |
| Short Term Debt | 100 M | 95 M | |
| Short and Long Term Debt | 884.4 M | 928.6 M | |
| Net Debt To EBITDA | 4.38 | 3.09 | |
| Debt To Equity | (10.23) | (10.75) | |
| Interest Debt Per Share | 121.31 | 127.38 | |
| Debt To Assets | 0.55 | 0.34 | |
| Long Term Debt To Capitalization | 1.08 | 0.76 | |
| Total Debt To Capitalization | 1.11 | 0.92 | |
| Debt Equity Ratio | (10.23) | (10.75) | |
| Debt Ratio | 0.55 | 0.34 | |
| Cash Flow To Debt Ratio | 0.12 | 0.12 |
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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 Brookfield Infrastructure offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Brookfield Infrastructure's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Brookfield Infrastructure Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Brookfield Infrastructure Corp Stock:Check out the analysis of Brookfield Infrastructure Financial Statements. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Will Gas Utilities sector continue expanding? Could Brookfield diversify its offerings? Factors like these will boost the valuation of Brookfield Infrastructure. Projected growth potential of Brookfield fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Brookfield Infrastructure data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 15.695 | Dividend Share 1.695 | Earnings Share (1.69) | Revenue Per Share | Quarterly Revenue Growth 0.005 |
The market value of Brookfield Infrastructure is measured differently than its book value, which is the value of Brookfield that is recorded on the company's balance sheet. Investors also form their own opinion of Brookfield Infrastructure's value that differs from its market value or its book value, called intrinsic value, which is Brookfield Infrastructure's true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because Brookfield Infrastructure's market value can be influenced by many factors that don't directly affect Brookfield Infrastructure's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
It's important to distinguish between Brookfield Infrastructure's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Brookfield Infrastructure should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Meanwhile, Brookfield Infrastructure's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.
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.