Macquarie ETF Debt
| PWER Etf | 36.17 0.20 0.56% |
Macquarie ETF Trust holds a debt-to-equity ratio of 0.55. Macquarie ETF's financial risk is the risk to Macquarie ETF stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Macquarie ETF'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. Macquarie ETF's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the ETF is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Macquarie Etf's retail investors understand whether an upcoming fall or rise in the market will negatively affect Macquarie ETF's stakeholders.
For most companies, including Macquarie ETF, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Macquarie ETF Trust, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Macquarie ETF's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Total Assets 8.3 M |
Given that Macquarie ETF's debt-to-equity ratio measures a ETF's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Macquarie ETF 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 Macquarie ETF to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Macquarie ETF is said to be less leveraged. If creditors hold a majority of Macquarie ETF's assets, the ETF is said to be highly leveraged.
Macquarie | Build AI portfolio with Macquarie Etf |
Macquarie ETF Trust Debt to Cash Allocation
Many companies such as Macquarie ETF, 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.
Macquarie ETF Trust currently holds 36.01 M in liabilities with Debt to Equity (D/E) ratio of 0.55, which is about average as compared to similar companies. Macquarie ETF Trust has a current ratio of 2.96, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Macquarie ETF until it has trouble settling it off, either with new capital or with free cash flow. So, Macquarie ETF's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Macquarie ETF Trust sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Macquarie to invest in growth at high rates of return. When we think about Macquarie ETF's use of debt, we should always consider it together with cash and equity.Macquarie ETF 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 Macquarie ETF's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Macquarie ETF, which in turn will lower the firm's financial flexibility.Macquarie ETF Corporate Bonds Issued
Understaning Macquarie ETF Use of Financial Leverage
Macquarie ETF's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Macquarie ETF's current equity. If creditors own a majority of Macquarie ETF's assets, the company is considered highly leveraged. Understanding the composition and structure of Macquarie ETF's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
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Pair Trading with Macquarie ETF
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 Macquarie ETF 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 Macquarie ETF will appreciate offsetting losses from the drop in the long position's value.Moving together with Macquarie Etf
| 0.66 | XLE | Energy Select Sector | PairCorr |
| 0.66 | VDE | Vanguard Energy Index | PairCorr |
| 0.68 | OIH | VanEck Oil Services | PairCorr |
| 0.65 | IYE | iShares Energy ETF | PairCorr |
Moving against Macquarie Etf
The ability to find closely correlated positions to Macquarie ETF could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Macquarie ETF 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 Macquarie ETF - 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 Macquarie ETF Trust to buy it.
The correlation of Macquarie ETF 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 Macquarie ETF moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Macquarie ETF Trust 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 Macquarie ETF 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 Macquarie ETF Fundamentals Over Time. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
The market value of Macquarie ETF Trust is measured differently than its book value, which is the value of Macquarie that is recorded on the company's balance sheet. Investors also form their own opinion of Macquarie ETF's value that differs from its market value or its book value, called intrinsic value, which is Macquarie ETF'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 Macquarie ETF's market value can be influenced by many factors that don't directly affect Macquarie ETF'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 Macquarie ETF's value and its price as these two are different measures arrived at by different means. Investors typically determine if Macquarie ETF is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Macquarie ETF'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.