Global Crossing Airlines 55336VAL4 Bond
| JET Stock | 0.70 0.01 1.45% |
At this time, Global Crossing's Net Debt is very stable compared to the past year. As of the 25th of November 2024, Long Term Debt is likely to grow to about 30.6 M, while Short and Long Term Debt is likely to drop about 1.4 M. With a high degree of financial leverage come high-interest payments, which usually reduce Global Crossing's Earnings Per Share (EPS).
At this time, Global Crossing's Total Current Liabilities is very stable compared to the past year. As of the 25th of November 2024, Non Current Liabilities Total is likely to grow to about 103.1 M, while Change To Liabilities is likely to drop about 1.8 M. Global |
Given the importance of Global Crossing's capital structure, the first step in the capital decision process is for the management of Global Crossing 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 Global Crossing Airlines to issue bonds at a reasonable cost.
| Popular Name | Global Crossing MPLX LP 52 |
| Specialization | Transportation |
| Equity ISIN Code | US37960G4010 |
| Bond Issue ISIN Code | US55336VAL45 |
| S&P Rating | Others |
| Maturity Date | 1st of March 2047 |
| Issuance Date | 10th of February 2017 |
| Coupon | 5.2 % |
Global Crossing Airlines Outstanding Bond Obligations
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Understaning Global Crossing Use of Financial Leverage
Leverage ratios show Global Crossing'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 Global Crossing'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 | ||
| Net Debt | 17.6 M | 18.5 M | |
| Long Term Debt | 29.2 M | 30.6 M | |
| Short and Long Term Debt | 2.1 M | 1.4 M |
Pair Trading with Global Crossing
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 Global Crossing 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 Global Crossing will appreciate offsetting losses from the drop in the long position's value.Moving together with Global Stock
The ability to find closely correlated positions to Global Crossing could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Global Crossing 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 Global Crossing - 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 Global Crossing Airlines to buy it.
The correlation of Global Crossing 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 Global Crossing moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Global Crossing Airlines 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 Global Crossing 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.Other Information on Investing in Global Stock
Global Crossing financial ratios help investors to determine whether Global 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 Global with respect to the benefits of owning Global Crossing 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.