Core Main Debt
| CNM Stock | USD 47.54 2.27 5.01% |
Core Main holds a debt-to-equity ratio of 0.818. At this time, Core Main's Total Debt To Capitalization is very stable compared to the past year. As of the 25th of November 2024, Debt Equity Ratio is likely to grow to 3.36, while Net Debt is likely to drop about 1.5 B. . Core Main's financial risk is the risk to Core Main stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Core Main'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. Core Main'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 Core Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Core Main's stakeholders.
Core Main Quarterly Net Debt |
|
For most companies, including Core Main, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Core Main, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Core Main'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 5.3048 | Book Value 8.534 | Operating Margin 0.1039 | Profit Margin 0.0558 | Return On Assets 0.0797 |
Given that Core Main'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 Core Main 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 Core Main to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Core Main is said to be less leveraged. If creditors hold a majority of Core Main's assets, the Company is said to be highly leveraged.
As of the 25th of November 2024, Total Current Liabilities is likely to drop to about 645.7 M. In addition to that, Liabilities And Stockholders Equity is likely to drop to about 4.7 BCore |
Core Main Bond Ratings
Core Main financial ratings play a critical role in determining how much Core Main 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 Core Main's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (3.37) | Unlikely Manipulator | View |
Core Main Debt to Cash Allocation
Many companies such as Core Main, 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.
Core Main has 2.07 B in debt with debt to equity (D/E) ratio of 0.82, which is OK given its current industry classification. Core Main has a current ratio of 2.23, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Core to invest in growth at high rates of return. Core Main Other Current Liab Over Time
Core Main Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Core Main 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.Core Main Debt Ratio | 63.0 |
Core Main Corporate Bonds Issued
Core Short Long Term Debt Total
Short Long Term Debt Total |
|
Understaning Core Main Use of Financial Leverage
Leverage ratios show Core Main's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Core Main's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 2.1 B | 1.6 B | |
| Net Debt | 2.1 B | 1.5 B | |
| Long Term Debt | 1.9 B | 1.4 B | |
| Long Term Debt Total | 1.3 B | 1.4 B | |
| Short and Long Term Debt | 17.2 M | 15.6 M | |
| Short Term Debt | 125 M | 91.5 M | |
| Net Debt To EBITDA | 2.32 | 6.31 | |
| Debt To Equity | 1.33 | 3.36 | |
| Interest Debt Per Share | 11.65 | 15.02 | |
| Debt To Assets | 0.38 | 0.63 | |
| Long Term Debt To Capitalization | 0.56 | 0.77 | |
| Total Debt To Capitalization | 0.57 | 0.77 | |
| Debt Equity Ratio | 1.33 | 3.36 | |
| Debt Ratio | 0.38 | 0.63 | |
| Cash Flow To Debt Ratio | 0.55 | 0.10 |
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out the analysis of Core Main Fundamentals Over Time. To learn how to invest in Core Stock, please use our How to Invest in Core Main guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Trading Companies & Distributors 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 Core Main. If investors know Core 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 Core Main 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 (0.07) | Earnings Share 2.1 | Revenue Per Share 37.819 | Quarterly Revenue Growth 0.055 | Return On Assets 0.0797 |
The market value of Core Main is measured differently than its book value, which is the value of Core that is recorded on the company's balance sheet. Investors also form their own opinion of Core Main's value that differs from its market value or its book value, called intrinsic value, which is Core Main'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 Core Main's market value can be influenced by many factors that don't directly affect Core Main'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 Core Main's value and its price as these two are different measures arrived at by different means. Investors typically determine if Core Main is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Core Main'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.