Sable Offshore Current Debt
| SOC Stock | 30.53 0.10 0.33% |
At present, Sable Offshore's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short and Long Term Debt is expected to grow to about 9.1 M, whereas Net Debt To EBITDA is projected to grow to (1.61). With a high degree of financial leverage come high-interest payments, which usually reduce Sable Offshore's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.14 | Current Value 0.0744 | Quarterly Volatility 0.04836944 |
Given that Sable Offshore'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 Sable Offshore 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 Sable Offshore to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Sable Offshore is said to be less leveraged. If creditors hold a majority of Sable Offshore's assets, the Company is said to be highly leveraged.
At present, Sable Offshore's Non Current Liabilities Total is projected to increase significantly based on the last few years of reporting. Sable |
Sable Offshore Financial Rating
Sable Offshore Corp financial ratings play a critical role in determining how much Sable Offshore 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 Sable Offshore's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (5.29) | Unlikely Manipulator | View |
Sable Offshore Total Assets Over Time
Sable Offshore Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Sable Offshore uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Sable Offshore Debt Ratio | 7.44 |
Sable Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Sable Offshore Use of Financial Leverage
Sable Offshore's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Sable Offshore's total debt position, including all outstanding debt obligations, and compares it with Sable Offshore's equity. Financial leverage can amplify the potential profits to Sable Offshore's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Sable Offshore is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 8.6 M | 9.1 M | |
| Net Debt | 8.3 M | 8.7 M | |
| Short and Long Term Debt | 8.6 M | 9.1 M | |
| Short Term Debt | 8.6 M | 9.1 M | |
| Net Debt To EBITDA | (1.69) | (1.61) | |
| Debt To Equity | 1.09 | 0.78 | |
| Interest Debt Per Share | 0.37 | 0.39 | |
| Debt To Assets | 0.14 | 0.07 | |
| Total Debt To Capitalization | 0.56 | 0.32 | |
| Debt Equity Ratio | 1.09 | 0.78 | |
| Debt Ratio | 0.14 | 0.07 | |
| Cash Flow To Debt Ratio | (0.59) | (0.62) |
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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 Sable Offshore Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sable Offshore'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 Sable Offshore Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sable Offshore Corp Stock:Check out the analysis of Sable Offshore Fundamentals Over Time. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Is Oil & Gas Exploration & Production 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 Sable Offshore. If investors know Sable 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 Sable Offshore listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Sable Offshore Corp is measured differently than its book value, which is the value of Sable that is recorded on the company's balance sheet. Investors also form their own opinion of Sable Offshore's value that differs from its market value or its book value, called intrinsic value, which is Sable Offshore'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 Sable Offshore's market value can be influenced by many factors that don't directly affect Sable Offshore'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 Sable Offshore's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sable Offshore is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sable Offshore'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.