1847 Holdings Current Debt
| EFSH Stock | USD 0.20 0.01 3.19% |
As of now, 1847 Holdings' Long Term Debt is increasing as compared to previous years. The 1847 Holdings' current Short and Long Term Debt is estimated to increase to about 8.2 M, while Net Debt To EBITDA is forecasted to increase to (2.47). With a high degree of financial leverage come high-interest payments, which usually reduce 1847 Holdings' Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 1.12 | Current Value 1.07 | Quarterly Volatility 72.41085362 |
Given that 1847 Holdings' 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 1847 Holdings 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 1847 Holdings to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, 1847 Holdings is said to be less leveraged. If creditors hold a majority of 1847 Holdings' assets, the Company is said to be highly leveraged.
The 1847 Holdings' current Total Current Liabilities is estimated to increase to about 34 M. The 1847 Holdings' current Liabilities And Stockholders Equity is estimated to increase to about 47.5 M1847 |
1847 Holdings LLC Debt to Cash Allocation
As 1847 Holdings LLC follows its natural business cycle, the capital allocation decisions will not magically go away. 1847 Holdings' 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.
1847 Holdings LLC currently holds 38.5 M in liabilities. 1847 Holdings LLC has a current ratio of 0.9, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about 1847 Holdings' use of debt, we should always consider it together with its cash and equity.1847 Holdings Total Assets Over Time
1847 Holdings Assets Financed by Debt
The debt-to-assets ratio shows the degree to which 1847 Holdings 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.1847 Holdings Debt Ratio | 107.0 |
1847 Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning 1847 Holdings Use of Financial Leverage
Understanding the composition and structure of 1847 Holdings' 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 1847 Holdings' 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 | 44.3 M | 46.5 M | |
| Net Debt | 43.4 M | 45.6 M | |
| Short Term Debt | 9.2 M | 9.6 M | |
| Long Term Debt | 31 M | 32.6 M | |
| Short and Long Term Debt | 7.8 M | 8.2 M | |
| Net Debt To EBITDA | (2.60) | (2.47) | |
| Debt To Equity | (1.85) | (1.76) | |
| Interest Debt Per Share | 0.14 | 0.12 | |
| Debt To Assets | 1.12 | 1.07 | |
| Long Term Debt To Capitalization | 2.94 | 3.09 | |
| Total Debt To Capitalization | 1.75 | 1.84 | |
| Debt Equity Ratio | (1.85) | (1.76) | |
| Debt Ratio | 1.12 | 1.07 | |
| Cash Flow To Debt Ratio | (0.18) | (0.19) |
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Check out the analysis of 1847 Holdings Fundamentals Over Time. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Industrial Machinery & Supplies & Components 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 1847 Holdings. If investors know 1847 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 1847 Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share -23.5 K | Revenue Per Share | Quarterly Revenue Growth (0.11) | Return On Assets | Return On Equity |
The market value of 1847 Holdings LLC is measured differently than its book value, which is the value of 1847 that is recorded on the company's balance sheet. Investors also form their own opinion of 1847 Holdings' value that differs from its market value or its book value, called intrinsic value, which is 1847 Holdings' 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 1847 Holdings' market value can be influenced by many factors that don't directly affect 1847 Holdings' 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 1847 Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if 1847 Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 1847 Holdings' 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.