JPMorgan Ultra Short JPMORGAN Bond
| JPST Etf | USD 50.52 0.02 0.04% |
JPMorgan Ultra Short holds a debt-to-equity ratio of 0.28. . JPMorgan Ultra's financial risk is the risk to JPMorgan Ultra stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
JPMorgan Ultra'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. JPMorgan Ultra's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the ETF is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps JPMorgan Etf's retail investors understand whether an upcoming fall or rise in the market will negatively affect JPMorgan Ultra's stakeholders.
For most companies, including JPMorgan Ultra, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for JPMorgan Ultra Short Income, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, JPMorgan Ultra's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Total Assets 28.5 B |
JPMorgan |
Given the importance of JPMorgan Ultra's capital structure, the first step in the capital decision process is for the management of JPMorgan Ultra 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 JPMorgan Ultra Short Income to issue bonds at a reasonable cost.
| Popular Name | JPMorgan Ultra JPMORGAN CHASE CO |
| Equity ISIN Code | US46641Q8371 |
| Bond Issue ISIN Code | US46647PBA30 |
| S&P Rating | Others |
| Maturity Date | Others |
| Issuance Date | Others |
| Coupon | 3.96 % |
JPMorgan Ultra Short Outstanding Bond Obligations
Understaning JPMorgan Ultra Use of Financial Leverage
JPMorgan Ultra's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to JPMorgan Ultra's current equity. If creditors own a majority of JPMorgan Ultra's assets, the company is considered highly leveraged. Understanding the composition and structure of JPMorgan Ultra's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Under normal circumstances, the fund seeks to achieve its investment objective by investing at least 80 percent of its assets in investment grade, U.S. dollar denominated short-term fixed, variable and floating rate debt. JPM Ultra-Short is traded on NYSEARCA Exchange in the United States. Please read more on our technical analysis page.
Thematic Opportunities
Explore Investment Opportunities
Check out the analysis of JPMorgan Ultra Fundamentals Over Time. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
The market value of JPMorgan Ultra Short is measured differently than its book value, which is the value of JPMorgan that is recorded on the company's balance sheet. Investors also form their own opinion of JPMorgan Ultra's value that differs from its market value or its book value, called intrinsic value, which is JPMorgan Ultra'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 JPMorgan Ultra's market value can be influenced by many factors that don't directly affect JPMorgan Ultra'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 JPMorgan Ultra's value and its price as these two are different measures arrived at by different means. Investors typically determine if JPMorgan Ultra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JPMorgan Ultra'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.