Ollies Bargain Debt
| OLLI Stock | USD 100.58 5.97 6.31% |
Ollies Bargain Outlet holds a debt-to-equity ratio of 0.34. As of now, Ollies Bargain's Interest Debt Per Share is increasing as compared to previous years. The Ollies Bargain's current Debt To Assets is estimated to increase to 0.35, while Short and Long Term Debt Total is projected to decrease to under 313.2 M. With a high degree of financial leverage come high-interest payments, which usually reduce Ollies Bargain's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Ollies Bargain'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. Ollies Bargain's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Ollies Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Ollies Bargain's stakeholders.
For most companies, including Ollies Bargain, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Ollies Bargain Outlet, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Ollies Bargain's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 3.8791 | Book Value 25.91 | Operating Margin 0.1051 | Profit Margin 0.0919 | Return On Assets 0.0701 |
Ollies |
Ollies Bargain Bond Ratings
Ollies Bargain Outlet financial ratings play a critical role in determining how much Ollies Bargain 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 Ollies Bargain's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.05) | Unlikely Manipulator | View |
Ollies Bargain Outlet Debt to Cash Allocation
As Ollies Bargain Outlet follows its natural business cycle, the capital allocation decisions will not magically go away. Ollies Bargain'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.
Ollies Bargain Outlet currently holds 488.75 M in liabilities with Debt to Equity (D/E) ratio of 0.34, which is about average as compared to similar companies. Ollies Bargain Outlet has a current ratio of 2.79, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Ollies Bargain's use of debt, we should always consider it together with its cash and equity.Ollies Bargain Total Assets Over Time
Ollies Bargain Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Ollies Bargain 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.Ollies Bargain Debt Ratio | 35.0 |
Ollies Bargain Corporate Bonds Issued
Most Ollies bonds can be classified according to their maturity, which is the date when Ollies Bargain Outlet 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.
Ollies Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Ollies Bargain Use of Financial Leverage
Understanding the composition and structure of Ollies Bargain's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Ollies Bargain's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 488.7 M | 313.2 M | |
| Net Debt | 222.5 M | 117.6 M | |
| Long Term Debt | 1 M | 970.9 K | |
| Short Term Debt | 179 M | 187.9 M | |
| Short and Long Term Debt | 639 K | 607 K | |
| Long Term Debt Total | 772.2 K | 733.6 K | |
| Net Debt To EBITDA | 0.85 | 4.18 | |
| Debt To Equity | 0.06 | 0.77 | |
| Interest Debt Per Share | 1.47 | 6.40 | |
| Debt To Assets | 0.04 | 0.35 | |
| Long Term Debt To Capitalization | 0.00 | 0.43 | |
| Total Debt To Capitalization | 0.06 | 0.44 | |
| Debt Equity Ratio | 0.06 | 0.77 | |
| Debt Ratio | 0.04 | 0.35 | |
| Cash Flow To Debt Ratio | 2.80 | 0.10 |
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When determining whether Ollies Bargain Outlet offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ollies Bargain's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ollies Bargain Outlet Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ollies Bargain Outlet Stock:Check out the analysis of Ollies Bargain Fundamentals Over Time. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Broadline Retail 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 Ollies Bargain. If investors know Ollies 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 Ollies Bargain 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 0.162 | Earnings Share 3.28 | Revenue Per Share 36.047 | Quarterly Revenue Growth 0.124 | Return On Assets 0.0701 |
The market value of Ollies Bargain Outlet is measured differently than its book value, which is the value of Ollies that is recorded on the company's balance sheet. Investors also form their own opinion of Ollies Bargain's value that differs from its market value or its book value, called intrinsic value, which is Ollies Bargain'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 Ollies Bargain's market value can be influenced by many factors that don't directly affect Ollies Bargain'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 Ollies Bargain's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ollies Bargain is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ollies Bargain'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.