PCBL LIMITED AerCap Bond

PCBL Stock   393.40  7.30  1.89%   
At this time, PCBL's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 48.3 B in 2024, whereas Short and Long Term Debt is likely to drop slightly above 6 B in 2024. . PCBL's financial risk is the risk to PCBL stockholders that is caused by an increase in debt.
Total Current Liabilities is likely to gain to about 33.7 B in 2024. Liabilities And Stockholders Equity is likely to gain to about 118.6 B in 2024
  
Check out the analysis of PCBL Fundamentals Over Time.
View Bond Profile
Given the importance of PCBL's capital structure, the first step in the capital decision process is for the management of PCBL to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of PCBL LIMITED to issue bonds at a reasonable cost.
Popular NamePCBL AerCap Global Aviation
SpecializationSpecialty Chemicals
Equity ISIN CodeINE602A01031
Bond Issue ISIN CodeUS00773HAA59
S&P Rating
Others
Maturity Date15th of June 2045
Issuance DateOthers
Coupon6.5 %
View All PCBL Outstanding Bonds

PCBL LIMITED Outstanding Bond Obligations

Understaning PCBL Use of Financial Leverage

PCBL's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to PCBL's current equity. If creditors own a majority of PCBL's assets, the company is considered highly leveraged. Understanding the composition and structure of PCBL's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last ReportedProjected for Next Year
Short and Long Term Debt Total49.8 B52.3 B
Net Debt46 B48.3 B
Short Term Debt10.7 B11.3 B
Long Term Debt37.8 B39.7 B
Short and Long Term Debt10.4 BB
Please read more on our technical analysis page.

Also Currently Popular

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.

Additional Tools for PCBL Stock Analysis

When running PCBL's price analysis, check to measure PCBL'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 PCBL is operating at the current time. Most of PCBL's value examination focuses on studying past and present price action to predict the probability of PCBL's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PCBL's price. Additionally, you may evaluate how the addition of PCBL 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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.