Caldwell Partners Current Debt
CWL Stock | CAD 0.80 0.00 0.00% |
Caldwell Partners holds a debt-to-equity ratio of 0.0. At this time, Caldwell Partners' Net Debt To EBITDA is very stable compared to the past year. As of the 26th of May 2024, Interest Debt Per Share is likely to grow to 0.82, though Net Debt is likely to grow to (15.9 M). With a high degree of financial leverage come high-interest payments, which usually reduce Caldwell Partners' Earnings Per Share (EPS).
At this time, Caldwell Partners' Net Debt To EBITDA is very stable compared to the past year. As of the 26th of May 2024, Interest Debt Per Share is likely to grow to 0.82, though Net Debt is likely to grow to (15.9 M). Caldwell |
Caldwell Partners Financial Leverage Rating
Caldwell Partners International bond ratings play a critical role in determining how much Caldwell Partners 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 Caldwell Partners' borrowing costs.Caldwell Partners Debt to Cash Allocation
As Caldwell Partners International follows its natural business cycle, the capital allocation decisions will not magically go away. Caldwell Partners' 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. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company has accumulated 4.41 M in total debt. Caldwell Partners has a current ratio of 1.41, which is within standard range for the sector. Debt can assist Caldwell Partners until it has trouble settling it off, either with new capital or with free cash flow. So, Caldwell Partners' 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 Caldwell Partners sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Caldwell to invest in growth at high rates of return. When we think about Caldwell Partners' use of debt, we should always consider it together with cash and equity.Caldwell Partners Total Assets Over Time
Caldwell Partners 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 Caldwell Partners' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Caldwell Partners, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Caldwell Partners debt ratio should be compared their industry average or other competing firms.Caldwell Net Debt
Understaning Caldwell Partners Use of Financial Leverage
Caldwell Partners financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Caldwell Partners's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Caldwell Partners assets, the company is considered highly leveraged. Understanding the composition and structure of overall Caldwell Partners debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Caldwell Partners' 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 Caldwell Partners' 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).
Last Reported | Projected for Next Year | ||
Net Debt | -16.7 M | -15.9 M | |
Short Term Debt | 0.00 | 0.00 | |
Long Term Debt Total | 5.1 M | 3.1 M | |
Short and Long Term Debt Total | 12.2 M | 10.7 M | |
Short and Long Term Debt | 158.4 K | 140.8 K | |
Net Debt To EBITDA | 8.16 | 8.22 | |
Debt To Equity | 0.90 | 0.83 | |
Interest Debt Per Share | 0.78 | 0.82 | |
Debt To Assets | 0.26 | 0.30 | |
Long Term Debt To Capitalization | 0.37 | 0.22 | |
Total Debt To Capitalization | 0.51 | 0.43 | |
Debt Equity Ratio | 0.90 | 0.83 | |
Debt Ratio | 0.26 | 0.30 | |
Cash Flow To Debt Ratio | (0.46) | (0.44) |
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out the analysis of Caldwell Partners Fundamentals Over Time. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Complementary Tools for Caldwell Stock analysis
When running Caldwell Partners' price analysis, check to measure Caldwell Partners' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caldwell Partners is operating at the current time. Most of Caldwell Partners' value examination focuses on studying past and present price action to predict the probability of Caldwell Partners' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caldwell Partners' price. Additionally, you may evaluate how the addition of Caldwell Partners to your portfolios can decrease your overall portfolio volatility.
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |
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.