Pioneer Bancorp Debt
| PBFS Stock | USD 11.80 0.12 1.03% |
Pioneer Bancorp has over 756,000 in debt which may indicate that it relies heavily on debt financing. Interest Debt Per Share is likely to gain to 0.91 in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 718.2 K in 2024. . Pioneer Bancorp's financial risk is the risk to Pioneer Bancorp stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Pioneer Bancorp'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. Pioneer Bancorp'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 Pioneer Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Pioneer Bancorp's stakeholders.
For most companies, including Pioneer Bancorp, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Pioneer Bancorp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Pioneer Bancorp'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 0.9986 | Book Value 11.951 | Operating Margin 0.3696 | Profit Margin 0.2316 | Return On Assets 0.0091 |
Pioneer |
Pioneer Bancorp Debt to Cash Allocation
Many companies such as Pioneer Bancorp, 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.
Pioneer Bancorp currently holds 756 K in liabilities with Debt to Equity (D/E) ratio of 11.77, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Note, when we think about Pioneer Bancorp's use of debt, we should always consider it together with its cash and equity.Pioneer Bancorp Total Assets Over Time
Pioneer Bancorp Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Pioneer Bancorp 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.Pioneer Bancorp Debt Ratio | 0.35 |
Pioneer Bancorp Corporate Bonds Issued
Pioneer Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Pioneer Bancorp Use of Financial Leverage
Pioneer Bancorp's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Pioneer Bancorp's current equity. If creditors own a majority of Pioneer Bancorp's assets, the company is considered highly leveraged. Understanding the composition and structure of Pioneer Bancorp's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 756 K | 718.2 K | |
| Net Debt | -150.8 M | -158.3 M | |
| Short Term Debt | 756 K | 718.2 K | |
| Net Debt To EBITDA | (6.85) | (7.20) | |
| Debt To Equity | 0.04 | 0.04 | |
| Interest Debt Per Share | 0.87 | 0.91 | |
| Total Debt To Capitalization | 0.04 | 0.04 | |
| Debt Equity Ratio | 0.04 | 0.04 | |
| Cash Flow To Debt Ratio | 2.14 | 1.90 |
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Additional Tools for Pioneer Stock Analysis
When running Pioneer Bancorp's price analysis, check to measure Pioneer Bancorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pioneer Bancorp is operating at the current time. Most of Pioneer Bancorp's value examination focuses on studying past and present price action to predict the probability of Pioneer Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pioneer Bancorp's price. Additionally, you may evaluate how the addition of Pioneer Bancorp to your portfolios can decrease your overall portfolio volatility.
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.