Energy Transfer Current Debt
| ET-PI Stock | 11.95 0.01 0.08% |
As of now, Energy Transfer's Short Term Debt is increasing as compared to previous years. The Energy Transfer's current Debt To Assets is estimated to increase to 0.57, while Long Term Debt is projected to decrease to under 40.2 B. With a high degree of financial leverage come high-interest payments, which usually reduce Energy Transfer's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.4610899 | Current Value 0.57 | Quarterly Volatility 0.04995605 |
Given that Energy Transfer'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 Energy Transfer 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 Energy Transfer to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Energy Transfer is said to be less leveraged. If creditors hold a majority of Energy Transfer's assets, the Company is said to be highly leveraged.
The current Total Current Liabilities is estimated to decrease to about 10.1 B. The current Non Current Liabilities Total is estimated to decrease to about 44.9 BEnergy |
Energy Transfer Total Assets Over Time
Energy Transfer Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Energy Transfer 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.Energy Transfer Debt Ratio | 57.0 |
Energy Net Debt
Net Debt |
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Understaning Energy Transfer Use of Financial Leverage
Understanding the composition and structure of Energy Transfer'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 Energy Transfer'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 | ||
| Net Debt | 53.1 B | 55.9 B | |
| Long Term Debt | 51.4 B | 40.2 B | |
| Short and Long Term Debt | 1 B | 1.1 B | |
| Short and Long Term Debt Total | 53.2 B | 56.2 B | |
| Short Term Debt | 1.1 B | 1.2 B | |
| Net Debt To EBITDA | 4.22 | 4.14 | |
| Debt To Equity | 1.19 | 1.13 | |
| Interest Debt Per Share | 17.40 | 15.39 | |
| Debt To Assets | 0.46 | 0.57 | |
| Long Term Debt To Capitalization | 0.54 | 1.06 | |
| Total Debt To Capitalization | 0.54 | 1.06 | |
| Debt Equity Ratio | 1.19 | 1.13 | |
| Debt Ratio | 0.46 | 0.57 | |
| Cash Flow To Debt Ratio | 0.18 | 0.10 |
Currently Active Assets on Macroaxis
When determining whether Energy Transfer LP is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Energy Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Energy Transfer Lp Stock. Highlighted below are key reports to facilitate an investment decision about Energy Transfer Lp Stock:Check out the analysis of Energy Transfer Fundamentals Over Time. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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.