Intel Corp CEDEAR Morgan Bond

INTC Stock  ARS 4,310  25.00  0.58%   
Intel Corp CEDEAR has over 37.68 Billion in debt which may indicate that it relies heavily on debt financing. With a high degree of financial leverage come high-interest payments, which usually reduce Intel Corp's Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

Intel Corp'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. Intel Corp'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 Intel Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Intel Corp's stakeholders.
For most companies, including Intel Corp, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Intel Corp CEDEAR, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Intel Corp's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
  
Check out the analysis of Intel Corp Fundamentals Over Time.
View Bond Profile
Given the importance of Intel Corp's capital structure, the first step in the capital decision process is for the management of Intel Corp 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 Intel Corp CEDEAR to issue bonds at a reasonable cost.
Popular NameIntel Corp Morgan Stanley 3971
Equity ISIN CodeUS4581401001
Bond Issue ISIN CodeUS61744YAL20
S&P Rating
Others
Maturity Date22nd of July 2038
Issuance Date24th of July 2017
Coupon3.971 %
View All Intel Corp Outstanding Bonds

Intel Corp CEDEAR Outstanding Bond Obligations

Dana 575 percentUS235822AB96Details
Volcan Compania MineraUSP98047AC08Details
Boeing Co 2196US097023DG73Details
INTEL P 315US458140AX85Details
INTEL P 41US458140AY68Details
Intel 245 percentUS458140BH27Details
INTEL P 3734US458140BG44Details
INTEL P 4US458140AN04Details
INTEL P 48US458140AK64Details
HSBC Holdings PLCUS404280DR76Details
INTEL P 41US458140AV20Details
INTEL P 49US458140AT73Details
INTEL P 26US458140AU47Details
INTEL P 37US458140AS90Details
INTEL P 425US458140AP51Details
INTC 505 05 AUG 62US458140CC21Details
INTC 4875 10 FEB 26US458140CD04Details
INTC 415 05 AUG 32US458140CA64Details
INTC 49 05 AUG 52US458140CB48Details
INTC 59 10 FEB 63US458140CK47Details
INTC 57 10 FEB 53US458140CJ73Details
INTC 52 10 FEB 33US458140CG35Details
INTC 5625 10 FEB 43US458140CH18Details
INTC 4875 10 FEB 28US458140CE86Details
INTC 5125 10 FEB 30US458140CF51Details
INTEL PORATIONUS458140BQ26Details
INTEL PORATIONUS458140BR09Details
INTEL PORATIONUS458140BP43Details
INTEL PORATIONUS458140BM12Details
INTEL PORATIONUS458140BN94Details
Intel 31 percentUS458140BK55Details
Intel 325 percentUS458140BJ82Details
INTEL PORATIONUS458140BL39Details
INTC 4 05 AUG 29US458140BZ25Details
INTC 375 05 AUG 27US458140BY59Details
INTC 305 12 AUG 51US458140BW93Details
INTC 32 12 AUG 61US458140BX76Details
INTC 2 12 AUG 31US458140BU38Details
INTC 28 12 AUG 41US458140BV11Details
INTC 16 12 AUG 28US458140BT64Details
MPLX LP 4875US55336VAG59Details
MPLX LP 4125US55336VAK61Details
MPLX LP 52US55336VAL45Details
International Game TechnologyUS460599AD57Details
BNP Paribas FRNUSF1R15XK367Details
Morgan Stanley 3591US61744YAK47Details
Morgan Stanley 3971US61744YAL20Details
MGM Resorts InternationalUS552953CD18Details
Valero Energy PartnersUS91914JAA07Details

Understaning Intel Corp Use of Financial Leverage

Intel Corp's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Intel Corp's total debt position, including all outstanding debt obligations, and compares it with Intel Corp's equity. Financial leverage can amplify the potential profits to Intel Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Intel Corp is unable to cover its debt costs.
Intel Corporation offers computing, networking, data storage, and communication solutions worldwide. The company was founded in 1968 and is based in Santa Clara, California. INTEL CORP operates under Semiconductors classification in Argentina and is traded on Buenos-Aires Stock Exchange. It employs 107400 people.
Please read more on our technical analysis page.

Also Currently Popular

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.

Other Information on Investing in Intel Stock

Intel Corp financial ratios help investors to determine whether Intel Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Intel with respect to the benefits of owning Intel Corp security.

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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.