Great Western Minerals Morgan Bond
At this time, Great Western's Debt To Assets are most likely to increase slightly in the upcoming years. The Great Western's current Long Term Debt To Capitalization is estimated to increase to 1.02, while Net Debt To EBITDA is forecasted to increase to (2.23). . Great Western's financial risk is the risk to Great Western stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.82 | Current Value 0.86 | Quarterly Volatility 0.24363443 |
Great |
| Popular Name | Great Western Morgan Stanley 3971 |
| Specialization | Other Industrial Metals & Mining |
| Equity ISIN Code | CA39141Y1034 |
| Bond Issue ISIN Code | US61744YAL20 |
| S&P Rating | Others |
| Maturity Date | 22nd of July 2038 |
| Issuance Date | 24th of July 2017 |
| Coupon | 3.971 % |
Great Western Minerals Outstanding Bond Obligations
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Understaning Great Western Use of Financial Leverage
Great Western's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Great Western's total debt position, including all outstanding debt obligations, and compares it with Great Western's equity. Financial leverage can amplify the potential profits to Great Western's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Great Western is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 75.7 M | 79.5 M | |
| Short and Long Term Debt | 7.6 M | 7.2 M | |
| Net Debt To EBITDA | (2.34) | (2.23) | |
| Debt To Equity | (15.33) | (14.56) | |
| Interest Debt Per Share | 0.17 | 0.18 | |
| Debt To Assets | 0.82 | 0.86 | |
| Long Term Debt To Capitalization | 0.97 | 1.02 | |
| Total Debt To Capitalization | 0.97 | 1.02 | |
| Debt Equity Ratio | (15.33) | (14.56) | |
| Debt Ratio | 0.82 | 0.86 | |
| Cash Flow To Debt Ratio | (0.35) | (0.37) |
Currently Active Assets on Macroaxis
When determining whether Great Western Minerals is a strong investment it is important to analyze Great Western's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Great Western's future performance. For an informed investment choice regarding Great Stock, refer to the following important reports:Check out the analysis of Great Western Fundamentals Over Time. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Is Diversified Metals & Mining 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 Great Western. If investors know Great 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 Great Western listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Revenue Per Share 0.059 | Quarterly Revenue Growth 0.542 | Return On Assets (0.13) |
The market value of Great Western Minerals is measured differently than its book value, which is the value of Great that is recorded on the company's balance sheet. Investors also form their own opinion of Great Western's value that differs from its market value or its book value, called intrinsic value, which is Great Western'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 Great Western's market value can be influenced by many factors that don't directly affect Great Western'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 Great Western's value and its price as these two are different measures arrived at by different means. Investors typically determine if Great Western is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Great Western'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.