Cheniere Energy Debt
| LNG Stock | USD 218.22 4.38 1.97% |
At this time, Cheniere Energy's Short Term Debt is most likely to increase significantly in the upcoming years. The Cheniere Energy's current Short and Long Term Debt is estimated to increase to about 329.2 M, while Long Term Debt Total is projected to decrease to roughly 20.7 B. . Cheniere Energy's financial risk is the risk to Cheniere Energy stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.55012072 | Current Value 0.54 | Quarterly Volatility 0.24235096 |
Given that Cheniere Energy'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 Cheniere Energy 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 Cheniere Energy to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Cheniere Energy is said to be less leveraged. If creditors hold a majority of Cheniere Energy's assets, the Company is said to be highly leveraged.
The Cheniere Energy's current Total Current Liabilities is estimated to increase to about 4.1 B. The Cheniere Energy's current Liabilities And Stockholders Equity is estimated to increase to about 45.2 BCheniere |
Cheniere Energy Bond Ratings
Cheniere Energy financial ratings play a critical role in determining how much Cheniere Energy 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 Cheniere Energy's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (1.63) | Possible Manipulator | View |
Cheniere Energy Debt to Cash Allocation
Many companies such as Cheniere Energy, 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.
Cheniere Energy has 26.79 B in debt. Cheniere Energy has a current ratio of 0.75, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Cheniere to invest in growth at high rates of return. Cheniere Energy Total Assets Over Time
Cheniere Energy Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Cheniere Energy 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.Cheniere Energy Debt Ratio | 54.0 |
Cheniere Energy Corporate Bonds Issued
Most Cheniere bonds can be classified according to their maturity, which is the date when Cheniere Energy has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Cheniere Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Cheniere Energy Use of Financial Leverage
Cheniere Energy's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Cheniere Energy's total debt position, including all outstanding debt obligations, and compares it with Cheniere Energy's equity. Financial leverage can amplify the potential profits to Cheniere Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Cheniere Energy is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 26.8 B | 28.1 B | |
| Net Debt | 22.7 B | 23.9 B | |
| Short Term Debt | 955 M | 1 B | |
| Long Term Debt | 23.4 B | 15.3 B | |
| Long Term Debt Total | 27.7 B | 20.7 B | |
| Short and Long Term Debt | 300 M | 329.2 M | |
| Net Debt To EBITDA | 1.36 | 1.29 | |
| Debt To Equity | 4.68 | 4.92 | |
| Interest Debt Per Share | 102.38 | 107.50 | |
| Debt To Assets | 0.55 | 0.54 | |
| Long Term Debt To Capitalization | 0.82 | 0.80 | |
| Total Debt To Capitalization | 0.82 | 0.66 | |
| Debt Equity Ratio | 4.68 | 4.92 | |
| Debt Ratio | 0.55 | 0.54 | |
| Cash Flow To Debt Ratio | 0.36 | 0.37 |
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When determining whether Cheniere Energy is a strong investment it is important to analyze Cheniere Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cheniere Energy's future performance. For an informed investment choice regarding Cheniere Stock, refer to the following important reports:Check out the analysis of Cheniere Energy Fundamentals Over Time. For more detail on how to invest in Cheniere Stock please use our How to Invest in Cheniere Energy guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Oil & Gas Storage & Transportation 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 Cheniere Energy. If investors know Cheniere 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 Cheniere Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.44) | Dividend Share 1.805 | Earnings Share 15.74 | Revenue Per Share 67.26 | Quarterly Revenue Growth (0.09) |
The market value of Cheniere Energy is measured differently than its book value, which is the value of Cheniere that is recorded on the company's balance sheet. Investors also form their own opinion of Cheniere Energy's value that differs from its market value or its book value, called intrinsic value, which is Cheniere Energy'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 Cheniere Energy's market value can be influenced by many factors that don't directly affect Cheniere Energy'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 Cheniere Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cheniere Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cheniere Energy'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.