LandBridge Company Current Debt
| LB Stock | USD 61.51 6.21 9.17% |
LandBridge Company holds a debt-to-equity ratio of -33.788. At present, LandBridge Company's Net Debt To EBITDA is projected to drop slightly based on the last few years of reporting. The current year's Cash Flow To Debt Ratio is expected to grow to 167.49, whereas Short and Long Term Debt Total is forecasted to decline to about 106 M. With a high degree of financial leverage come high-interest payments, which usually reduce LandBridge Company's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.00042253 | Current Value 0.000401 | Quarterly Volatility 0.09997821 |
Given that LandBridge Company's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which LandBridge Company 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 LandBridge Company to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, LandBridge Company is said to be less leveraged. If creditors hold a majority of LandBridge Company's assets, the Company is said to be highly leveraged.
The current year's Total Current Liabilities is expected to grow to about 15.7 M, whereas Liabilities And Stockholders Equity is forecasted to decline to about 310.7 M. LandBridge |
LandBridge Company Financial Rating
LandBridge Company LLC financial ratings play a critical role in determining how much LandBridge Company have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for LandBridge Company's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (3.47) | Unlikely Manipulator | View |
LandBridge Company Debt to Cash Allocation
As LandBridge Company LLC follows its natural business cycle, the capital allocation decisions will not magically go away. LandBridge Company's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
LandBridge Company LLC reports 424 K of total liabilities. LandBridge Company has a current ratio of 1.93, which is generally considered normal. Note however, debt could still be an excellent tool for LandBridge to invest in growth at high rates of return.
LandBridge Company Total Assets Over Time
LandBridge Company Assets Financed by Debt
The debt-to-assets ratio shows the degree to which LandBridge Company uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.LandBridge Company Debt Ratio | 0.0401 |
LandBridge Short Long Term Debt Total
Short Long Term Debt Total |
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At present, LandBridge Company's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting.
Understaning LandBridge Company Use of Financial Leverage
LandBridge Company's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures LandBridge Company's total debt position, including all outstanding debt obligations, and compares it with LandBridge Company's equity. Financial leverage can amplify the potential profits to LandBridge Company's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if LandBridge Company is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 151.5 M | 106 M | |
| Net Debt | 344.2 M | 173.7 M | |
| Long Term Debt | 380.8 M | 196.2 M | |
| Short and Long Term Debt | 424 K | 402.8 K | |
| Short Term Debt | 24 M | 18.2 M | |
| Net Debt To EBITDA | 4.95 | 5.85 | |
| Interest Debt Per Share | 1.33 | 1.27 | |
| Long Term Debt To Capitalization | 0.38 | 0.25 | |
| Cash Flow To Debt Ratio | 159.52 | 167.49 |
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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.Check out the analysis of LandBridge Company Fundamentals Over Time. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Real Estate Management & Development space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LandBridge Company. If investors know LandBridge will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LandBridge Company listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LandBridge Company is measured differently than its book value, which is the value of LandBridge that is recorded on the company's balance sheet. Investors also form their own opinion of LandBridge Company's value that differs from its market value or its book value, called intrinsic value, which is LandBridge Company'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 LandBridge Company's market value can be influenced by many factors that don't directly affect LandBridge Company'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 LandBridge Company's value and its price as these two are different measures arrived at by different means. Investors typically determine if LandBridge Company is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LandBridge Company'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.