SWP Growth Current Debt
| SWP Etf | USD 26.33 0.10 0.38% |
SWP Growth Income has over 4.25 Billion in debt which may indicate that it relies heavily on debt financing. . SWP Growth's financial risk is the risk to SWP Growth stockholders that is caused by an increase in debt.
Given that SWP Growth'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 SWP Growth 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 SWP Growth to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, SWP Growth is said to be less leveraged. If creditors hold a majority of SWP Growth's assets, the ETF is said to be highly leveraged.
SWP |
SWP Growth Income Debt to Cash Allocation
SWP Growth Income has 4.25 B in debt with debt to equity (D/E) ratio of 50.2, demonstrating that the company may be unable to create cash to meet all of its financial commitments. SWP Growth Income has a current ratio of 1.04, demonstrating that it may have difficulties to pay its financial commitments when the payables are due. Debt can assist SWP Growth until it has trouble settling it off, either with new capital or with free cash flow. So, SWP Growth'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 SWP Growth Income sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for SWP to invest in growth at high rates of return. When we think about SWP Growth's use of debt, we should always consider it together with cash and equity.SWP Growth 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 SWP Growth's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of SWP Growth, which in turn will lower the firm's financial flexibility.Understaning SWP Growth Use of Financial Leverage
SWP Growth's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to SWP Growth's current equity. If creditors own a majority of SWP Growth's assets, the company is considered highly leveraged. Understanding the composition and structure of SWP Growth's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Stanley Black Decker, Inc. provides tools and storage, engineered fastening and infrastructure, and security solutions worldwide. The company was founded in 1843 and is headquartered in New Britain, Connecticut. Stanley Black operates under Tools Accessories classification in USA and is traded on New York Stock Exchange. It employs 57765 people. Please read more on our technical analysis page.
Pair Trading with SWP Growth
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 SWP Growth 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 SWP Growth will appreciate offsetting losses from the drop in the long position's value.Moving against SWP Etf
| 0.81 | GMET | VanEck Vectors ETF | PairCorr |
| 0.64 | DD | Dupont De Nemours Fiscal Year End 4th of February 2025 | PairCorr |
| 0.63 | PSLV | Sprott Physical Silver | PairCorr |
| 0.54 | SPPP | Sprott Physical Platinum | PairCorr |
| 0.53 | CAT | Caterpillar Fiscal Year End 3rd of February 2025 | PairCorr |
The ability to find closely correlated positions to SWP Growth could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SWP Growth 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 SWP Growth - 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 SWP Growth Income to buy it.
The correlation of SWP Growth 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 SWP Growth moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SWP Growth 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 SWP Growth 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 SWP Growth Fundamentals Over Time. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
The market value of SWP Growth Income is measured differently than its book value, which is the value of SWP that is recorded on the company's balance sheet. Investors also form their own opinion of SWP Growth's value that differs from its market value or its book value, called intrinsic value, which is SWP Growth'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 SWP Growth's market value can be influenced by many factors that don't directly affect SWP Growth'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 SWP Growth's value and its price as these two are different measures arrived at by different means. Investors typically determine if SWP Growth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SWP Growth'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.