AIM ETF Products 83001AAC6 Bond
SIXD Etf | USD 26.79 0.01 0.04% |
AIM ETF Products holds a debt-to-equity ratio of 0.27. . AIM ETF's financial risk is the risk to AIM ETF stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
AIM 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. AIM 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 AIM Etf's retail investors understand whether an upcoming fall or rise in the market will negatively affect AIM ETF's stakeholders.
For most companies, including AIM ETF, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for AIM ETF Products, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, AIM 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 18.8 M |
AIM |
Given the importance of AIM ETF's capital structure, the first step in the capital decision process is for the management of AIM ETF 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 AIM ETF Products to issue bonds at a reasonable cost.
Popular Name | AIM ETF Six Flags Entertainment |
Equity ISIN Code | US83002F1003 |
Bond Issue ISIN Code | US83001AAC62 |
S&P Rating | Others |
Maturity Date | Others |
Issuance Date | Others |
Coupon | 5.5 % |
AIM ETF Products Outstanding Bond Obligations
Six Flags Entertainment | US83001AAC62 | Details | |
Six Flags Theme | US83001WAC82 | Details |
Understaning AIM ETF Use of Financial Leverage
AIM ETF's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures AIM ETF's total debt position, including all outstanding debt obligations, and compares it with AIM ETF's equity. Financial leverage can amplify the potential profits to AIM ETF's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if AIM ETF is unable to cover its debt costs.
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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.When determining whether AIM ETF Products offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AIM ETF'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 Aim Etf Products Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Aim Etf Products Etf:Check out the analysis of AIM ETF Fundamentals Over Time. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
The market value of AIM ETF Products is measured differently than its book value, which is the value of AIM that is recorded on the company's balance sheet. Investors also form their own opinion of AIM ETF's value that differs from its market value or its book value, called intrinsic value, which is AIM 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 AIM ETF's market value can be influenced by many factors that don't directly affect AIM 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 AIM ETF's value and its price as these two are different measures arrived at by different means. Investors typically determine if AIM ETF is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AIM 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.