HDFC Bank Limited 552953CD1 Bond
| HDFCBANK | 1,746 4.40 0.25% |
At this time, HDFC Bank's Short and Long Term Debt Total is very stable compared to the past year. As of the 22nd of November 2024, Net Debt is likely to grow to about 5.3 T, while Short Term Debt is likely to drop about 35.2 B. With a high degree of financial leverage come high-interest payments, which usually reduce HDFC Bank's Earnings Per Share (EPS).
As of the 22nd of November 2024, Total Current Liabilities is likely to grow to about 9.9 T. Also, Liabilities And Stockholders Equity is likely to grow to about 42.4 THDFC |
Given the importance of HDFC Bank's capital structure, the first step in the capital decision process is for the management of HDFC Bank to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of HDFC Bank Limited to issue bonds at a reasonable cost.
| Popular Name | HDFC Bank MGM Resorts International |
| Specialization | Banks - Regional |
| Equity ISIN Code | INE040A01034 |
| Bond Issue ISIN Code | US552953CD18 |
| S&P Rating | Others |
| Maturity Date | 1st of September 2026 |
| Issuance Date | 19th of August 2016 |
| Coupon | 4.625 % |
HDFC Bank Limited Outstanding Bond Obligations
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| MGM Resorts International | US552953CD18 | Details | |
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Understaning HDFC Bank Use of Financial Leverage
Leverage ratios show HDFC Bank's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of HDFC Bank's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 7.3 T | 7.7 T | |
| Net Debt | 5 T | 5.3 T | |
| Short Term Debt | 37 B | 35.2 B | |
| Long Term Debt | 7.3 T | 7.7 T | |
| Short and Long Term Debt | 1.3 T | 675.9 B | |
| Long Term Debt Total | 3 T | 1.9 T |
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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 HDFC Bank Limited offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of HDFC Bank'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 Hdfc Bank Limited Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hdfc Bank Limited Stock:Check out the analysis of HDFC Bank Fundamentals Over Time. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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.