Shyft Current Debt
| SHYF Stock | USD 12.83 0.15 1.18% |
Shyft Group holds a debt-to-equity ratio of 0.578. At this time, Shyft's Long Term Debt Total is most likely to increase significantly in the upcoming years. The Shyft's current Short and Long Term Debt is estimated to increase to about 36.4 M, while Long Term Debt is projected to decrease to roughly 32.7 M. Shyft's financial risk is the risk to Shyft stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Shyft'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. Shyft'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 Shyft Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Shyft's stakeholders.
For most companies, including Shyft, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Shyft Group, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Shyft's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.5672 | Book Value 7.183 | Operating Margin (0.01) | Profit Margin 0.0001 | Return On Assets 0.0013 |
Shyft |
Shyft Financial Rating
Shyft Group bond ratings play a critical role in determining how much Shyft 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 Shyft's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (2.80) | Unlikely Manipulator | View |
Shyft Group Debt to Cash Allocation
Many companies such as Shyft, 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.
Shyft Group currently holds 132.37 M in liabilities with Debt to Equity (D/E) ratio of 0.58, which is about average as compared to similar companies. Shyft Group has a current ratio of 1.72, which is within standard range for the sector. Note, when we think about Shyft's use of debt, we should always consider it together with its cash and equity.Shyft Total Assets Over Time
Shyft 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 Shyft's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Shyft, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Shyft debt ratio should be compared their industry average or other competing firms.Shyft Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Shyft Use of Financial Leverage
Shyft financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Shyft'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 Shyft assets, the company is considered highly leveraged. Understanding the composition and structure of overall Shyft 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 Shyft'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 Shyft'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).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 132.4 M | 139 M | |
| Net Debt | 122.4 M | 128.5 M | |
| Short Term Debt | 45.5 M | 43.2 M | |
| Long Term Debt | 50.1 M | 32.7 M | |
| Long Term Debt Total | 64.7 M | 67.9 M | |
| Short and Long Term Debt | 34.7 M | 36.4 M | |
| Net Debt To EBITDA | 5.06 | 5.32 | |
| Debt To Equity | 0.52 | 0.55 | |
| Interest Debt Per Share | 4.00 | 4.20 | |
| Debt To Assets | 0.25 | 0.26 | |
| Long Term Debt To Capitalization | 0.26 | 0.19 | |
| Total Debt To Capitalization | 0.34 | 0.28 | |
| Debt Equity Ratio | 0.52 | 0.55 | |
| Debt Ratio | 0.25 | 0.26 | |
| Cash Flow To Debt Ratio | 0.42 | 0.40 |
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Additional Information and Resources on Investing in Shyft Stock
When determining whether Shyft Group is a strong investment it is important to analyze Shyft's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Shyft's future performance. For an informed investment choice regarding Shyft Stock, refer to the following important reports:Check out the analysis of Shyft Fundamentals Over Time. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Is Industrial Machinery & Supplies & Components 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 Shyft. If investors know Shyft 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 Shyft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.73) | Dividend Share 0.2 | Revenue Per Share 23.936 | Quarterly Revenue Growth (0.19) | Return On Assets 0.0013 |
The market value of Shyft Group is measured differently than its book value, which is the value of Shyft that is recorded on the company's balance sheet. Investors also form their own opinion of Shyft's value that differs from its market value or its book value, called intrinsic value, which is Shyft'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 Shyft's market value can be influenced by many factors that don't directly affect Shyft'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 Shyft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shyft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shyft'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.