Ashford Hospitality Debt
AHT Stock | USD 7.74 0.05 0.64% |
At this time, Ashford Hospitality's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt To EBITDA is likely to gain to 13.06 in 2024, whereas Net Debt is likely to drop slightly above 2.5 B in 2024. . Ashford Hospitality's financial risk is the risk to Ashford Hospitality stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.98087677 | Current Value 0.57 | Quarterly Volatility 0.20794415 |
Ashford |
Ashford Hospitality Bond Ratings
Ashford Hospitality Trust financial ratings play a critical role in determining how much Ashford Hospitality 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 Ashford Hospitality's borrowing costs.Piotroski F Score | 6 | Healthy | View |
Beneish M Score | (1.33) | Possible Manipulator | View |
Ashford Hospitality Trust Debt to Cash Allocation
Ashford Hospitality Trust has 3.46 B in debt. Ashford Hospitality Trust has a current ratio of 3.95, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Ashford to invest in growth at high rates of return.Ashford Hospitality Total Assets Over Time
Ashford Hospitality Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Ashford Hospitality 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.Ashford Hospitality Debt Ratio | 57.0 |
Ashford Hospitality Corporate Bonds Issued
Ashford Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Ashford Hospitality Use of Financial Leverage
Ashford Hospitality's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Ashford Hospitality's current equity. If creditors own a majority of Ashford Hospitality's assets, the company is considered highly leveraged. Understanding the composition and structure of Ashford Hospitality's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 3.5 B | 3.5 B | |
Net Debt | 3.3 B | 2.5 B | |
Long Term Debt | 3.4 B | 2.6 B | |
Short Term Debt | 49.7 M | 47.2 M | |
Long Term Debt Total | 4.4 B | 3.8 B | |
Short and Long Term Debt | 4.3 B | 3.6 B | |
Net Debt To EBITDA | 10.78 | 13.06 | |
Debt To Equity | (13.00) | (13.65) | |
Interest Debt Per Share | 118.26 | 112.35 | |
Debt To Assets | 0.98 | 0.57 | |
Long Term Debt To Capitalization | 1.08 | 0.65 | |
Total Debt To Capitalization | 1.08 | 0.65 | |
Debt Equity Ratio | (13.00) | (13.65) | |
Debt Ratio | 0.98 | 0.57 |
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Additional Tools for Ashford Stock Analysis
When running Ashford Hospitality's price analysis, check to measure Ashford Hospitality's 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 Ashford Hospitality is operating at the current time. Most of Ashford Hospitality's value examination focuses on studying past and present price action to predict the probability of Ashford Hospitality's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ashford Hospitality's price. Additionally, you may evaluate how the addition of Ashford Hospitality to your portfolios can decrease your overall portfolio volatility.
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.