Meta Financial Debt
| CASH Stock | USD 92.46 0.01 0.01% |
Meta Financial Group holds a debt-to-equity ratio of 0.26. As of now, Meta Financial's Long Term Debt is increasing as compared to previous years. The Meta Financial's current Long Term Debt Total is estimated to increase to about 64.3 M, while Short and Long Term Debt Total is projected to decrease to under 46.4 M. With a high degree of financial leverage come high-interest payments, which usually reduce Meta Financial's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Meta Financial'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. Meta Financial'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 Meta Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Meta Financial's stakeholders.
For most companies, including Meta Financial, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Meta Financial Group, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Meta Financial's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
As of now, Meta Financial's Total Current Liabilities is increasing as compared to previous years. The Meta Financial's current Liabilities And Stockholders Equity is estimated to increase to about 8.7 B, while Non Current Liabilities Total is projected to decrease to under 297 M. Check out the analysis of Meta Financial Financial Statements. Meta Financial Bond Ratings
Meta Financial Group financial ratings play a critical role in determining how much Meta Financial 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 Meta Financial's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (2.75) | Unlikely Manipulator | View |
Meta Financial Group Debt to Cash Allocation
As Meta Financial Group follows its natural business cycle, the capital allocation decisions will not magically go away. Meta Financial'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.
Meta Financial Group currently holds 42.46 M in liabilities with Debt to Equity (D/E) ratio of 0.26, which may suggest the company is not taking enough advantage from borrowing. Note, when we think about Meta Financial's use of debt, we should always consider it together with its cash and equity.Meta Financial Total Assets Over Time
Meta Financial Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Meta Financial 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.Meta Financial Debt Ratio | 0.65 |
Meta Financial Corporate Bonds Issued
Most Meta bonds can be classified according to their maturity, which is the date when Meta Financial 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.
Meta Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Meta Financial Use of Financial Leverage
Understanding the composition and structure of Meta Financial's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Meta Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 48.8 M | 46.4 M | |
| Net Debt | -70.3 M | -66.8 M | |
| Short Term Debt | 10.3 M | 9.8 M | |
| Long Term Debt | 30.1 M | 56.5 M | |
| Long Term Debt Total | 41.4 M | 64.3 M | |
| Short and Long Term Debt | 8.1 M | 7.7 M | |
| Net Debt To EBITDA | (0.32) | (0.30) | |
| Debt To Equity | 0.06 | 0.05 | |
| Interest Debt Per Share | 2.66 | 2.52 | |
| Debt To Assets | 0.01 | 0.01 | |
| Long Term Debt To Capitalization | 0.04 | 0.04 | |
| Total Debt To Capitalization | 0.05 | 0.05 | |
| Debt Equity Ratio | 0.06 | 0.05 | |
| Debt Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | 9.55 | 10.03 |
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Check out the analysis of Meta Financial Financial Statements. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is there potential for Regional Banks market expansion? Will Meta introduce new products? Factors like these will boost the valuation of Meta Financial. Projected growth potential of Meta fundamentally drives upward valuation adjustments. Understanding fair value requires weighing current performance against future potential. All the valuation information about Meta Financial 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 0.277 | Dividend Share 0.2 | Earnings Share 8.21 | Revenue Per Share | Quarterly Revenue Growth 0.036 |
Investors evaluate Meta Financial Group using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Meta Financial's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. External factors like market trends, sector rotation, and investor psychology can cause Meta Financial's market price to deviate significantly from intrinsic value.
It's important to distinguish between Meta Financial's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Meta Financial should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Meta Financial's 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.