BlackRock Long Debt

BTA Stock  USD 10.32  0.04  0.39%   
BlackRock Long Term holds a debt-to-equity ratio of 0.719. At present, BlackRock Long's Long Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 0, whereas Net Debt is forecasted to decline to 3,131. With a high degree of financial leverage come high-interest payments, which usually reduce BlackRock Long's Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

BlackRock Long'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. BlackRock Long'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 BlackRock Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect BlackRock Long's stakeholders.
For most companies, including BlackRock Long, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for BlackRock Long Term Municipal, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, BlackRock Long's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
0.9582
Book Value
10.728
Operating Margin
0.8472
Profit Margin
1.1114
Return On Assets
0.0249
The current year's Liabilities And Stockholders Equity is expected to grow to about 218.5 M, whereas Total Current Liabilities is forecasted to decline to about 66.5 M.
  
Check out the analysis of BlackRock Long Fundamentals Over Time.

BlackRock Long Bond Ratings

BlackRock Long Term Municipal financial ratings play a critical role in determining how much BlackRock Long 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 BlackRock Long's borrowing costs.
Piotroski F Score
3
FrailView
Beneish M Score
(2.65)
Unlikely ManipulatorView

BlackRock Long Term Debt to Cash Allocation

As BlackRock Long Term Municipal follows its natural business cycle, the capital allocation decisions will not magically go away. BlackRock Long'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.
BlackRock Long Term Municipal has 87.37 M in debt with debt to equity (D/E) ratio of 0.72, which is OK given its current industry classification. BlackRock Long Term has a current ratio of 0.05, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for BlackRock to invest in growth at high rates of return.

BlackRock Long Total Assets Over Time

BlackRock Long Assets Financed by Debt

The debt-to-assets ratio shows the degree to which BlackRock Long 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.

BlackRock Long Debt Ratio

    
  0.16   
It appears most of the BlackRock Long'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 BlackRock Long's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of BlackRock Long, which in turn will lower the firm's financial flexibility.

BlackRock Long Corporate Bonds Issued

Most BlackRock bonds can be classified according to their maturity, which is the date when BlackRock Long Term Municipal 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.

BlackRock Net Debt

Net Debt

3,131.1

At present, BlackRock Long's Net Debt is projected to increase significantly based on the last few years of reporting.

Understaning BlackRock Long Use of Financial Leverage

BlackRock Long's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures BlackRock Long's total debt position, including all outstanding debt obligations, and compares it with BlackRock Long's equity. Financial leverage can amplify the potential profits to BlackRock Long's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if BlackRock Long is unable to cover its debt costs.
Last ReportedProjected for Next Year
Net Debt3.3 K3.1 K
Long Term Debt28.6 M35.6 M
Short and Long Term Debt Total44.4 M24.4 M
Long Term Debt Total36.5 M28 M
Net Debt To EBITDA(0.03)(0.03)
Interest Debt Per Share(1.15)(1.09)
Cash Flow To Debt Ratio 17.87  18.76 
Please read more on our technical analysis page.

Also Currently Popular

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 BlackRock Long Term offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of BlackRock Long'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 Blackrock Long Term Municipal Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Blackrock Long Term Municipal Stock:
Check out the analysis of BlackRock Long Fundamentals Over Time.
You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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 BlackRock Long. If investors know BlackRock 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 BlackRock Long listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.83)
Dividend Share
0.522
Earnings Share
0.89
Revenue Per Share
0.799
Quarterly Revenue Growth
(0.01)
The market value of BlackRock Long Term is measured differently than its book value, which is the value of BlackRock that is recorded on the company's balance sheet. Investors also form their own opinion of BlackRock Long's value that differs from its market value or its book value, called intrinsic value, which is BlackRock Long'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 BlackRock Long's market value can be influenced by many factors that don't directly affect BlackRock Long'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 BlackRock Long's value and its price as these two are different measures arrived at by different means. Investors typically determine if BlackRock Long is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BlackRock Long'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.
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.