HHG Capital Current Debt
| HHGC Stock | USD 11.51 0.09 0.78% |
HHG Capital Corp holds a debt-to-equity ratio of 0.049. At present, HHG Capital's Net Debt is projected to decrease significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 241.5 K, whereas Short and Long Term Debt is forecasted to decline to about 160 K. With a high degree of financial leverage come high-interest payments, which usually reduce HHG Capital's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
HHG Capital'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. HHG Capital'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 HHG Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect HHG Capital's stakeholders.
For most companies, including HHG Capital, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for HHG Capital Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, HHG Capital'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 1.6713 | Book Value (0.41) | Return On Assets (0.01) | Return On Equity 1.6938 |
HHG |
HHG Capital Financial Rating
HHG Capital Corp financial ratings play a critical role in determining how much HHG Capital 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 HHG Capital's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (4.26) | Unlikely Manipulator | View |
HHG Capital Corp Debt to Cash Allocation
As HHG Capital Corp follows its natural business cycle, the capital allocation decisions will not magically go away. HHG Capital'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.
HHG Capital Corp currently holds 200 K in liabilities with Debt to Equity (D/E) ratio of 0.05, which may suggest the company is not taking enough advantage from borrowing. HHG Capital Corp has a current ratio of 5.11, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about HHG Capital's use of debt, we should always consider it together with its cash and equity.HHG Capital Total Assets Over Time
HHG Capital Assets Financed by Debt
The debt-to-assets ratio shows the degree to which HHG Capital 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.HHG Capital Debt Ratio | 0.26 |
HHG Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning HHG Capital Use of Financial Leverage
HHG Capital financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures HHG Capital'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 HHG Capital assets, the company is considered highly leveraged. Understanding the composition and structure of overall HHG Capital 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 HHG Capital'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 HHG Capital'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 | 230 K | 241.5 K | |
| Net Debt | 184 K | 193.2 K | |
| Short Term Debt | 230 K | 241.5 K | |
| Short and Long Term Debt | 180 K | 160 K | |
| Net Debt To EBITDA | (0.33) | (0.35) | |
| Debt To Equity | 0.01 | 0.01 | |
| Interest Debt Per Share | 0.04 | 0.04 | |
| Total Debt To Capitalization | 0.01 | 0.01 | |
| Debt Equity Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | (1.84) | (1.93) |
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When determining whether HHG Capital Corp is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if HHG Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Hhg Capital Corp Stock. Highlighted below are key reports to facilitate an investment decision about Hhg Capital Corp Stock:Check out the analysis of HHG Capital Fundamentals Over Time. For information on how to trade HHG Stock refer to our How to Trade HHG Stock guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Asset Management & Custody Banks 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 HHG Capital. If investors know HHG 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 HHG Capital 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 0.258 | Earnings Share 0.29 | Return On Assets (0.01) | Return On Equity 1.6938 |
The market value of HHG Capital Corp is measured differently than its book value, which is the value of HHG that is recorded on the company's balance sheet. Investors also form their own opinion of HHG Capital's value that differs from its market value or its book value, called intrinsic value, which is HHG Capital'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 HHG Capital's market value can be influenced by many factors that don't directly affect HHG Capital'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 HHG Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if HHG Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HHG Capital'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.