Turbo Global Partners Corporate Bonds and Leverage Analysis
| TRBO Stock | USD 0.0001 0.00 0.00% |
At this time, Turbo Global's Long Term Debt is very stable compared to the past year. As of the 26th of February 2025, Net Debt To EBITDA is likely to grow to 0.06, while Debt To Equity is likely to drop 0.04. With a high degree of financial leverage come high-interest payments, which usually reduce Turbo Global's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0355 | Current Value 0.0337 | Quarterly Volatility 0.58865062 |
Turbo |
Given the importance of Turbo Global's capital structure, the first step in the capital decision process is for the management of Turbo Global 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 Turbo Global Partners to issue bonds at a reasonable cost.
Turbo Global Bond Ratings
Turbo Global Partners financial ratings play a critical role in determining how much Turbo Global 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 Turbo Global's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (2.89) | Unlikely Manipulator | View |
Turbo Global Partners Debt to Cash Allocation
As Turbo Global Partners follows its natural business cycle, the capital allocation decisions will not magically go away. Turbo Global's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Turbo Global Partners currently holds 10.77 M in liabilities. Note, when we think about Turbo Global's use of debt, we should always consider it together with its cash and equity.Turbo Global Total Assets Over Time
Turbo Global Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Turbo Global 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.Turbo Global Debt Ratio | 3.37 |
Turbo Global Corporate Bonds Issued
Turbo Long Term Debt
Long Term Debt |
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Understaning Turbo Global Use of Financial Leverage
Leverage ratios show Turbo Global's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Turbo Global's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 9.4 M | 9.9 M | |
| Net Debt To EBITDA | 0.06 | 0.06 | |
| Debt To Equity | 0.04 | 0.04 | |
| Debt To Assets | 0.04 | 0.03 | |
| Long Term Debt To Capitalization | 0.03 | 0.03 | |
| Total Debt To Capitalization | 0.03 | 0.03 | |
| Debt Equity Ratio | 0.04 | 0.04 | |
| Debt Ratio | 0.04 | 0.03 | |
| Cash Flow To Debt Ratio | 17.69 | 9.10 |
Check out the analysis of Turbo Global Fundamentals Over Time. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Is Advertising 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 Turbo Global. If investors know Turbo 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 Turbo Global 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 Turbo Global Partners is measured differently than its book value, which is the value of Turbo that is recorded on the company's balance sheet. Investors also form their own opinion of Turbo Global's value that differs from its market value or its book value, called intrinsic value, which is Turbo Global'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 Turbo Global's market value can be influenced by many factors that don't directly affect Turbo Global'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 Turbo Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Turbo Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Turbo Global'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.