Pimco Dynamic Debt
| PDO Stock | USD 13.63 0.08 0.59% |
At this time, Pimco Dynamic's Short and Long Term Debt Total is very stable compared to the past year. As of the 29th of November 2024, Short Term Debt is likely to grow to about 1.4 B, though Net Debt is likely to grow to (239.4 K). With a high degree of financial leverage come high-interest payments, which usually reduce Pimco Dynamic's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0 | Current Value 0.0 | Quarterly Volatility 0.0 |
Pimco |
Pimco Dynamic Bond Ratings
Pimco Dynamic Income financial ratings play a critical role in determining how much Pimco Dynamic 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 Pimco Dynamic's borrowing costs.| Piotroski F Score | 8 | Strong | View |
| Beneish M Score | (3.96) | Unlikely Manipulator | View |
Pimco Dynamic Income Debt to Cash Allocation
As Pimco Dynamic Income follows its natural business cycle, the capital allocation decisions will not magically go away. Pimco Dynamic'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.
Pimco Dynamic Income has 1.02 B in debt. Pimco Dynamic Income has a current ratio of 11.73, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Pimco to invest in growth at high rates of return. Pimco Dynamic Total Assets Over Time
Pimco Dynamic Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Pimco Dynamic's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Pimco Dynamic, which in turn will lower the firm's financial flexibility.Pimco Dynamic Corporate Bonds Issued
Pimco Net Debt
Understaning Pimco Dynamic Use of Financial Leverage
Leverage ratios show Pimco Dynamic's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Pimco Dynamic's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Net Debt | -252 K | -239.4 K | |
| Short and Long Term Debt Total | 1 B | 1.1 B | |
| Short Term Debt | 1.4 B | 1.4 B | |
| Net Debt To EBITDA | (76.19) | (80.00) | |
| Interest Debt Per Share | 0.08 | 0.07 |
Pair Trading with Pimco Dynamic
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Pimco Dynamic position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pimco Dynamic will appreciate offsetting losses from the drop in the long position's value.Moving against Pimco Stock
| 0.42 | ECVT | Ecovyst | PairCorr |
| 0.37 | MKDTY | Molecular Data | PairCorr |
| 0.36 | WS | Worthington Steel | PairCorr |
| 0.35 | VKSC | Viskase Companies | PairCorr |
The ability to find closely correlated positions to Pimco Dynamic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pimco Dynamic when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Pimco Dynamic - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Pimco Dynamic Income to buy it.
The correlation of Pimco Dynamic is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Pimco Dynamic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pimco Dynamic Income moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Pimco Dynamic can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out the analysis of Pimco Dynamic Fundamentals Over Time. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Independent Oil & Gas 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 Pimco Dynamic. If investors know Pimco 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 Pimco Dynamic listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 1.48 |
The market value of Pimco Dynamic Income is measured differently than its book value, which is the value of Pimco that is recorded on the company's balance sheet. Investors also form their own opinion of Pimco Dynamic's value that differs from its market value or its book value, called intrinsic value, which is Pimco Dynamic'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 Pimco Dynamic's market value can be influenced by many factors that don't directly affect Pimco Dynamic'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 Pimco Dynamic's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pimco Dynamic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pimco Dynamic'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.