Telstra Analysis
Telstra holds a debt-to-equity ratio of 0.908. With a high degree of financial leverage come high-interest payments, which usually reduce Telstra's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Telstra'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. Telstra'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 Telstra Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Telstra's stakeholders.
For most companies, including Telstra, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Telstra, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Telstra'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 Telstra'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 Telstra 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 Telstra to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Telstra is said to be less leveraged. If creditors hold a majority of Telstra's assets, the Company is said to be highly leveraged.
Telstra is undervalued with Real Value of 0.0 and Hype Value of 0.0. The main objective of Telstra pink sheet analysis is to determine its intrinsic value, which is an estimate of what Telstra is worth, separate from its market price. There are two main types of Telstra's stock analysis: fundamental analysis and technical analysis.
The Telstra pink sheet is traded in the USA on PINK Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA.
Telstra |
Telstra Pink Sheet Analysis Notes
The book value of the company was at this time reported as 6.65. The company last dividend was issued on the 24th of August 2022. Telstra had 4:1 split on the 25th of August 1999. Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. Telstra Corporation Limited was founded in 1901 and is based in Melbourne, Australia. Telstra Cp operates under Telecom Services classification in the United States and is traded on OTC Exchange. It employs 26728 people.The quote for Telstra is published daily by the National Quotation Bureau and the company does not need to meet minimum requirements or file with the SEC. To find out more about Telstra contact the company at 61 3 8647 4838 or learn more at https://www.telstra.com.au.Telstra Investment Alerts
| Telstra is not yet fully synchronised with the market data | |
| Telstra has some characteristics of a very speculative penny stock | |
| Telstra has a very high chance of going through financial distress in the upcoming years | |
| Telstra has accumulated 8.29 B in total debt with debt to equity ratio (D/E) of 0.91, which is about average as compared to similar companies. Telstra has a current ratio of 0.68, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Telstra until it has trouble settling it off, either with new capital or with free cash flow. So, Telstra'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 Telstra sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Telstra to invest in growth at high rates of return. When we think about Telstra's use of debt, we should always consider it together with cash and equity. |
Telstra Market Capitalization
The company currently falls under 'Large-Cap' category with a current market capitalization of 28.84 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Telstra's market, we take the total number of its shares issued and multiply it by Telstra's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Telstra Profitablity
The company has Profit Margin (PM) of 0.08 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.12 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.12.Telstra Outstanding Bonds
Telstra issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Telstra uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Telstra bonds can be classified according to their maturity, which is the date when Telstra has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Telstra Debt to Cash Allocation
Telstra has accumulated 8.29 B in total debt with debt to equity ratio (D/E) of 0.91, which is about average as compared to similar companies. Telstra has a current ratio of 0.68, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Telstra until it has trouble settling it off, either with new capital or with free cash flow. So, Telstra'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 Telstra sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Telstra to invest in growth at high rates of return. When we think about Telstra's use of debt, we should always consider it together with cash and equity.Telstra 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 Telstra's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Telstra, which in turn will lower the firm's financial flexibility.Telstra Corporate Bonds Issued
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Other Consideration for investing in Telstra Pink Sheet
If you are still planning to invest in Telstra check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Telstra's history and understand the potential risks before investing.
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