Healthpeak Properties Debt
| DOC Stock | USD 16.78 0.33 2.01% |
Healthpeak Properties holds a debt-to-equity ratio of 0.681. At present, Healthpeak Properties' Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Net Debt To EBITDA is expected to grow to 6.49, whereas Short Term Debt is forecasted to decline to about 187.4 M. With a high degree of financial leverage come high-interest payments, which usually reduce Healthpeak Properties' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Healthpeak Properties' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Healthpeak Properties' 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 Healthpeak Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Healthpeak Properties' stakeholders.
For most companies, including Healthpeak Properties, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Healthpeak Properties, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Healthpeak Properties' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
At present, Healthpeak Properties' Non Current Liabilities Total is projected to increase significantly based on the last few years of reporting. The current year's Total Current Liabilities is expected to grow to about 1.9 B, whereas Non Current Liabilities Other is forecasted to decline to about 133.2 M. Healthpeak | Build AI portfolio with Healthpeak Stock |
Healthpeak Properties Debt to Cash Allocation
As Healthpeak Properties follows its natural business cycle, the capital allocation decisions will not magically go away. Healthpeak Properties' 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.
Healthpeak Properties has 1.08 B in debt with debt to equity (D/E) ratio of 0.68, which is OK given its current industry classification. Healthpeak Properties has a current ratio of 1.55, which is typical for the industry and considered as normal. That said, strategic use of leverage may enable Healthpeak to fund expansion initiatives and generate superior returns. Healthpeak Properties Total Assets Over Time
Healthpeak Properties Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Healthpeak Properties 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.Healthpeak Properties Debt Ratio | 47.0 |
Healthpeak Properties Corporate Bonds Issued
Most Healthpeak bonds can be classified according to their maturity, which is the date when Healthpeak Properties 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.
Healthpeak Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Healthpeak Properties Use of Financial Leverage
Healthpeak Properties' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Healthpeak Properties' total debt position, including all outstanding debt obligations, and compares it with Healthpeak Properties' equity. Financial leverage can amplify the potential profits to Healthpeak Properties' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Healthpeak Properties is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 10.4 B | 10.9 B | |
| Net Debt | 9.4 B | 9.8 B | |
| Short Term Debt | 197.2 M | 187.4 M | |
| Long Term Debt | 8.8 B | 5.8 B | |
| Long Term Debt Total | 7.1 B | 6.1 B | |
| Short and Long Term Debt | 1.1 B | 643.5 M | |
| Net Debt To EBITDA | 6.18 | 6.49 | |
| Debt To Equity | 1.39 | 1.41 | |
| Interest Debt Per Share | 15.44 | 16.21 | |
| Debt To Assets | 0.51 | 0.47 | |
| Long Term Debt To Capitalization | 0.57 | 0.76 | |
| Total Debt To Capitalization | 0.58 | 0.38 | |
| Debt Equity Ratio | 1.39 | 1.41 | |
| Debt Ratio | 0.51 | 0.47 | |
| Cash Flow To Debt Ratio | 0.12 | 0.11 |
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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 Healthpeak Properties offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Healthpeak Properties' 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 Healthpeak Properties Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Healthpeak Properties Stock:Check out the analysis of Healthpeak Properties Financial Statements. For information on how to trade Healthpeak Stock refer to our How to Trade Healthpeak Stock guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Will Diversified REITs sector continue expanding? Could Healthpeak diversify its offerings? Factors like these will boost the valuation of Healthpeak Properties. Projected growth potential of Healthpeak fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Healthpeak Properties data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.78) | Earnings Share 0.1 | Revenue Per Share | Quarterly Revenue Growth 0.008 | Return On Assets |
Investors evaluate Healthpeak Properties using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Healthpeak Properties' intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Healthpeak Properties' market price to deviate significantly from intrinsic value.
It's important to distinguish between Healthpeak Properties' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Healthpeak Properties should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Healthpeak Properties' 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.