Embecta Corp Debt
| EMBC Stock | USD 14.41 0.59 4.27% |
At present, Embecta Corp's Debt To Assets are projected to increase slightly based on the last few years of reporting. The current year's Net Debt To EBITDA is expected to grow to 5.05, whereas Short and Long Term Debt Total is forecasted to decline to about 1.1 B. With a high degree of financial leverage come high-interest payments, which usually reduce Embecta Corp's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 1.19 | Current Value 1.25 | Quarterly Volatility 0.60003032 |
Given that Embecta Corp'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 Embecta Corp 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 Embecta Corp to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Embecta Corp is said to be less leveraged. If creditors hold a majority of Embecta Corp's assets, the Company is said to be highly leveraged.
The current year's Change To Liabilities is expected to grow to about 100.9 M, whereas Total Current Liabilities is forecasted to decline to about 263.1 M. Embecta |
Embecta Corp Bond Ratings
Embecta Corp financial ratings play a critical role in determining how much Embecta Corp 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 Embecta Corp's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (1.25) | Possible Manipulator | View |
Embecta Corp Debt to Cash Allocation
As Embecta Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Embecta Corp'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.
Embecta Corp currently holds 1.64 B in liabilities. Embecta Corp has a current ratio of 2.49, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Embecta Corp's use of debt, we should always consider it together with its cash and equity.Embecta Corp Total Assets Over Time
Embecta Corp Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Embecta Corp 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.Embecta Corp Debt Ratio | 125.0 |
Embecta Corp Corporate Bonds Issued
Most Embecta bonds can be classified according to their maturity, which is the date when Embecta Corp 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.
Embecta Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Embecta Corp Use of Financial Leverage
Embecta Corp's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Embecta Corp's total debt position, including all outstanding debt obligations, and compares it with Embecta Corp's equity. Financial leverage can amplify the potential profits to Embecta Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Embecta Corp is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 1.9 B | 1.1 B | |
| Net Debt | 1.5 B | 868.1 M | |
| Short Term Debt | 15.1 M | 9.1 M | |
| Long Term Debt | 1.4 B | 1.3 B | |
| Long Term Debt Total | 1.4 B | 1.3 B | |
| Short and Long Term Debt | 8.6 M | 7.6 M | |
| Debt To Equity | (2.24) | (2.13) | |
| Interest Debt Per Share | 26.90 | 28.24 | |
| Debt To Assets | 1.19 | 1.25 | |
| Net Debt To EBITDA | 4.81 | 5.05 | |
| Long Term Debt To Capitalization | 1.86 | 1.95 | |
| Total Debt To Capitalization | 1.85 | 1.94 | |
| Debt Equity Ratio | (2.24) | (2.13) | |
| Debt Ratio | 1.19 | 1.25 | |
| Cash Flow To Debt Ratio | 0.05 | 0.05 |
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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 Embecta Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Embecta Corp'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 Embecta Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Embecta Corp Stock:Check out the analysis of Embecta Corp Fundamentals Over Time. For information on how to trade Embecta Stock refer to our How to Trade Embecta Stock guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Health Care Equipment & Supplies 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 Embecta Corp. If investors know Embecta 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 Embecta Corp 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 (0.04) | Dividend Share 0.6 | Earnings Share 1.2 | Revenue Per Share 19.438 | Quarterly Revenue Growth (0.05) |
The market value of Embecta Corp is measured differently than its book value, which is the value of Embecta that is recorded on the company's balance sheet. Investors also form their own opinion of Embecta Corp's value that differs from its market value or its book value, called intrinsic value, which is Embecta Corp'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 Embecta Corp's market value can be influenced by many factors that don't directly affect Embecta Corp'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 Embecta Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Embecta Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Embecta Corp'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.