Global Indemnity Debt
| GBLI Stock | USD 35.14 0.14 0.40% |
Global Indemnity PLC holds a debt-to-equity ratio of 0.027. As of now, Global Indemnity's Debt To Equity is increasing as compared to previous years. The Global Indemnity's current Debt To Assets is estimated to increase to 0.06, while Net Debt is forecasted to increase to (24 M). With a high degree of financial leverage come high-interest payments, which usually reduce Global Indemnity's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Global Indemnity'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. Global Indemnity's 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 Global Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Global Indemnity's stakeholders.
For most companies, including Global Indemnity, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Global Indemnity PLC, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Global Indemnity's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 0.7017 | Book Value 49.878 | Operating Margin 0.1421 | Profit Margin 0.0907 | Return On Assets 0.0192 |
Global |
Global Indemnity Bond Ratings
Global Indemnity PLC financial ratings play a critical role in determining how much Global Indemnity 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 Global Indemnity's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (2.68) | Unlikely Manipulator | View |
Global Indemnity PLC Debt to Cash Allocation
As Global Indemnity PLC follows its natural business cycle, the capital allocation decisions will not magically go away. Global Indemnity'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.
Global Indemnity PLC currently holds 12.73 M in liabilities with Debt to Equity (D/E) ratio of 0.03, which may suggest the company is not taking enough advantage from borrowing. Global Indemnity PLC has a current ratio of 1.15, suggesting that it is not liquid enough and may have problems paying out its financial obligations when due. Note, when we think about Global Indemnity's use of debt, we should always consider it together with its cash and equity.Global Indemnity Total Assets Over Time
Global Indemnity Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Global Indemnity 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.Global Indemnity Debt Ratio | 5.7 |
Global Indemnity Corporate Bonds Issued
Most Global bonds can be classified according to their maturity, which is the date when Global Indemnity PLC 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.
Global Net Debt
Net Debt |
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Understaning Global Indemnity Use of Financial Leverage
Understanding the composition and structure of Global Indemnity'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 Global Indemnity'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 | -25.3 M | -24 M | |
| Short and Long Term Debt Total | 12.7 M | 12.1 M | |
| Long Term Debt | 145.4 M | 154.8 M | |
| Long Term Debt Total | 145.4 M | 213.5 M | |
| Short and Long Term Debt | 9.2 M | 8.8 M | |
| Short Term Debt | 977.2 M | 1 B | |
| Net Debt To EBITDA | (0.65) | (0.61) | |
| Debt To Equity | 0.16 | 0.18 | |
| Interest Debt Per Share | 0.19 | 0.18 | |
| Debt To Assets | 0.06 | 0.06 | |
| Long Term Debt To Capitalization | 0.15 | 0.14 | |
| Total Debt To Capitalization | 0.15 | 0.14 | |
| Debt Equity Ratio | 0.16 | 0.18 | |
| Debt Ratio | 0.06 | 0.06 | |
| Cash Flow To Debt Ratio | 0.83 | 0.87 |
Currently Active Assets on Macroaxis
When determining whether Global Indemnity PLC offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Global Indemnity'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 Global Indemnity Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Global Indemnity Plc Stock:Check out the analysis of Global Indemnity Fundamentals Over Time. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Property & Casualty Insurance 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 Global Indemnity. If investors know Global 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 Global Indemnity 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 0.673 | Dividend Share 1.3 | Earnings Share 2.91 | Revenue Per Share 32.539 | Quarterly Revenue Growth (0.11) |
The market value of Global Indemnity PLC is measured differently than its book value, which is the value of Global that is recorded on the company's balance sheet. Investors also form their own opinion of Global Indemnity's value that differs from its market value or its book value, called intrinsic value, which is Global Indemnity'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 Global Indemnity's market value can be influenced by many factors that don't directly affect Global Indemnity'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 Global Indemnity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Global Indemnity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Global Indemnity'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.