Dws Strategic Debt
| KSMDelisted Fund | USD 10.07 0.00 0.00% |
Dws Strategic Municipal holds a debt-to-equity ratio of 0.708. . Dws Strategic's financial risk is the risk to Dws Strategic stockholders that is caused by an increase in debt.
Given that Dws Strategic's debt-to-equity ratio measures a Fund's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Dws Strategic is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Dws Strategic to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Dws Strategic is said to be less leveraged. If creditors hold a majority of Dws Strategic's assets, the Fund is said to be highly leveraged.
Dws |
Dws Strategic Municipal Debt to Cash Allocation
Many companies such as Dws Strategic, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Dws Strategic Municipal has 84.88 M in debt with debt to equity (D/E) ratio of 0.71, which is OK given its current industry classification. Dws Strategic Municipal has a current ratio of 0.18, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Dws Strategic until it has trouble settling it off, either with new capital or with free cash flow. So, Dws Strategic's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Dws Strategic Municipal sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Dws to invest in growth at high rates of return. When we think about Dws Strategic's use of debt, we should always consider it together with cash and equity.Dws Strategic Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Dws Strategic's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Dws Strategic, which in turn will lower the firm's financial flexibility.Dws Strategic Corporate Bonds Issued
Understaning Dws Strategic Use of Financial Leverage
Leverage ratios show Dws Strategic'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 Dws Strategic'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).
Deutsche Strategic Municipal Income Trust is a closed-ended fixed income mutual fund launched and managed by Deutsche Investment Management Americas Inc. Deutsche Strategic Municipal Income Trust was formed on March 22, 1988 and is domiciled in the United States. Scudder Strategic is traded on New York Stock Exchange in the United States. Please read more on our technical analysis page.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out the analysis of Dws Strategic Fundamentals Over Time. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Consideration for investing in Dws Fund
If you are still planning to invest in Dws Strategic Municipal check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Dws Strategic's history and understand the potential risks before investing.
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |
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.