| 2018 | 2019 | 2020 | 2021 (projected) | Interest Expense | 170.6 M | 145.8 M | 167.67 M | 180.91 M | Gross Profit | 2.03 B | 1.8 B | 2.07 B | 1.78 B |
Is Meredith Corp (NYSE:MDP) a good hedge for your existing portfolios?
 | By Ellen Johnson | Macroaxis Story |
Meredith Corp is generating 0.3677% of daily returns assuming volatility of 2.4359% on return distribution over 60 days investment horizon. While some risk-seeking insiders are getting worried about communication services space, it is reasonable to recap Meredith Corp as a possible investment alternative. We will evaluate if the latest Meredith Corp price volatility suggests a bounce in September.
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Reviewed by Rifka Kats
The company has 3.22 B in debt with debt to equity (D/E) ratio of 4.64, demonstrating that the firm may be unable to create cash to meet all of its financial commitments. Meredith Corp has a current ratio of 1.33, which is typical for the industry and considered as normal.
How important is Meredith's Liquidity
Meredith financial leverage refers to using borrowed capital as a funding source to finance Meredith ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Meredith financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Meredith's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Meredith's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Meredith's total debt and its cash.
Is Meredith valued sensibly by the market?
The entity reported the last year's revenue of 2.88 B. Total Income to common stockholders was 80.3 M with profit before taxes, overhead, and interest of 1.81 B.
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