Schneider National Debt
| SNDR Stock | USD 30.19 0.41 1.38% |
Schneider National holds a debt-to-equity ratio of 0.08. . Schneider National's financial risk is the risk to Schneider National stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Schneider National'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. Schneider National'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 Schneider Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Schneider National's stakeholders.
For most companies, including Schneider National, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Schneider National, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Schneider National's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Schneider National's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Schneider National 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 Schneider National to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Schneider National is said to be less leveraged. If creditors hold a majority of Schneider National's assets, the Company is said to be highly leveraged.
Schneider |
Schneider National Bond Ratings
Schneider National financial ratings play a critical role in determining how much Schneider National 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 Schneider National's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (3.19) | Unlikely Manipulator | View |
Schneider National Debt to Cash Allocation
Many companies such as Schneider National, 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.
Schneider National currently holds 302.1 M in liabilities with Debt to Equity (D/E) ratio of 0.08, which may suggest the company is not taking enough advantage from borrowing. Schneider National has a current ratio of 1.96, which is within standard range for the sector. Note, when we think about Schneider National's use of debt, we should always consider it together with its cash and equity.Schneider National 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 Schneider National's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Schneider National, which in turn will lower the firm's financial flexibility.Schneider National Corporate Bonds Issued
Understaning Schneider National Use of Financial Leverage
Schneider National's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Schneider National's current equity. If creditors own a majority of Schneider National's assets, the company is considered highly leveraged. Understanding the composition and structure of Schneider National's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Schneider National, Inc., together with its subsidiaries, provides surface transportation and logistics solutions in the United States, Canada, and Mexico. Schneider National, Inc. was founded in 1935 and is headquartered in Green Bay, Wisconsin. Schneider National operates under Trucking classification in the United States and is traded on New York Stock Exchange. It employs 16050 people. Please read more on our technical analysis page.
Pair Trading with Schneider National
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 Schneider National 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 Schneider National will appreciate offsetting losses from the drop in the long position's value.Moving against Schneider Stock
| 0.5 | BA | Boeing | PairCorr |
| 0.49 | FLYX | flyExclusive, | PairCorr |
| 0.46 | B | Barnes Group | PairCorr |
| 0.43 | MESA | Mesa Air Group | PairCorr |
| 0.42 | SNCY | Sun Country Airlines | PairCorr |
The ability to find closely correlated positions to Schneider National could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Schneider National 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 Schneider National - 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 Schneider National to buy it.
The correlation of Schneider National 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 Schneider National moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Schneider National 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 Schneider National 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.Additional Tools for Schneider Stock Analysis
When running Schneider National's price analysis, check to measure Schneider National'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 Schneider National is operating at the current time. Most of Schneider National's value examination focuses on studying past and present price action to predict the probability of Schneider National's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Schneider National's price. Additionally, you may evaluate how the addition of Schneider National 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.