Fidelity Low Debt
| FLDR Etf | USD 50.16 0.03 0.06% |
Fidelity Low Duration holds a debt-to-equity ratio of 0.78. . Fidelity Low's financial risk is the risk to Fidelity Low stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Fidelity Low'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. Fidelity Low's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the ETF is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Fidelity Etf's retail investors understand whether an upcoming fall or rise in the market will negatively affect Fidelity Low's stakeholders.
For most companies, including Fidelity Low, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Fidelity Low Duration, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Fidelity Low's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Total Assets 610.9 M |
Given that Fidelity Low's debt-to-equity ratio measures a ETF's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Fidelity Low 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 Fidelity Low to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Fidelity Low is said to be less leveraged. If creditors hold a majority of Fidelity Low's assets, the ETF is said to be highly leveraged.
Fidelity |
Fidelity Low Duration Debt to Cash Allocation
Many companies such as Fidelity Low, 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.
Fidelity Low Duration currently holds 34.86 M in liabilities with Debt to Equity (D/E) ratio of 0.78, which is about average as compared to similar companies. Fidelity Low Duration has a current ratio of 2.12, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Fidelity Low until it has trouble settling it off, either with new capital or with free cash flow. So, Fidelity Low's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Fidelity Low Duration sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Fidelity to invest in growth at high rates of return. When we think about Fidelity Low's use of debt, we should always consider it together with cash and equity.Fidelity Low Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Fidelity Low's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Fidelity Low, which in turn will lower the firm's financial flexibility.Fidelity Low Corporate Bonds Issued
Understaning Fidelity Low Use of Financial Leverage
Fidelity Low's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Fidelity Low's current equity. If creditors own a majority of Fidelity Low's assets, the company is considered highly leveraged. Understanding the composition and structure of Fidelity Low's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
The fund normally invests at least 80 percent of assets in securities included in the index. Fidelity Low is traded on BATS Exchange in the United States. Please read more on our technical analysis page.
Pair Trading with Fidelity Low
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fidelity Low position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fidelity Low will appreciate offsetting losses from the drop in the long position's value.Moving together with Fidelity Etf
| 0.89 | BIL | SPDR Bloomberg 1 | PairCorr |
| 0.9 | SHV | iShares Short Treasury | PairCorr |
| 0.95 | JPST | JPMorgan Ultra Short | PairCorr |
| 0.86 | USFR | WisdomTree Floating Rate | PairCorr |
| 0.93 | ICSH | iShares Ultra Short | PairCorr |
Moving against Fidelity Etf
| 0.77 | FNGD | MicroSectors FANG Index | PairCorr |
| 0.66 | HUM | Humana Inc Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.51 | LUX | Tema ETF Trust | PairCorr |
The ability to find closely correlated positions to Fidelity Low could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fidelity Low when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fidelity Low - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fidelity Low Duration to buy it.
The correlation of Fidelity Low is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fidelity Low moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fidelity Low Duration moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fidelity Low can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out the analysis of Fidelity Low Fundamentals Over Time. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
The market value of Fidelity Low Duration is measured differently than its book value, which is the value of Fidelity that is recorded on the company's balance sheet. Investors also form their own opinion of Fidelity Low's value that differs from its market value or its book value, called intrinsic value, which is Fidelity Low'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 Fidelity Low's market value can be influenced by many factors that don't directly affect Fidelity Low'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 Fidelity Low's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fidelity Low is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fidelity Low'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.