Brookfield Infrastructure Debt
| BIP Stock | USD 32.10 0.30 0.93% |
Brookfield Infrastructure holds a debt-to-equity ratio of 1.298. At this time, Brookfield Infrastructure's Total Debt To Capitalization is relatively stable compared to the past year. . Brookfield Infrastructure's financial risk is the risk to Brookfield Infrastructure stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Brookfield Infrastructure'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. Brookfield Infrastructure'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 Brookfield Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Brookfield Infrastructure's stakeholders.
Brookfield Infrastructure Quarterly Net Debt |
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For most companies, including Brookfield Infrastructure, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Brookfield Infrastructure Partners, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Brookfield Infrastructure'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 Brookfield Infrastructure'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 Brookfield Infrastructure 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 Brookfield Infrastructure to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Brookfield Infrastructure is said to be less leveraged. If creditors hold a majority of Brookfield Infrastructure's assets, the Company is said to be highly leveraged.
At this time, Brookfield Infrastructure's Total Current Liabilities is relatively stable compared to the past year. As of 02/26/2025, Liabilities And Stockholders Equity is likely to grow to about 121.7 B, while Non Current Liabilities Other is likely to drop slightly above 1.8 B. Brookfield |
Brookfield Infrastructure Bond Ratings
Brookfield Infrastructure Partners financial ratings play a critical role in determining how much Brookfield Infrastructure 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 Brookfield Infrastructure's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (2.02) | Possible Manipulator | View |
Brookfield Infrastructure Debt to Cash Allocation
Brookfield Infrastructure Partners has 49.57 B in debt with debt to equity (D/E) ratio of 1.3, which is OK given its current industry classification. Brookfield Infrastructure has a current ratio of 0.75, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Brookfield to invest in growth at high rates of return.Brookfield Infrastructure Total Assets Over Time
Brookfield Infrastructure Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Brookfield Infrastructure 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.Brookfield Infrastructure Debt Ratio | 54.0 |
Brookfield Infrastructure Corporate Bonds Issued
Brookfield Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Brookfield Infrastructure Use of Financial Leverage
Brookfield Infrastructure's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Brookfield Infrastructure's current equity. If creditors own a majority of Brookfield Infrastructure's assets, the company is considered highly leveraged. Understanding the composition and structure of Brookfield Infrastructure'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 | 44.6 B | 46.8 B | |
| Net Debt | 43.1 B | 45.3 B | |
| Long Term Debt | 45.9 B | 48.2 B | |
| Short Term Debt | 7.5 B | 7.8 B | |
| Short and Long Term Debt | 7 B | 7.3 B | |
| Long Term Debt Total | 34.8 B | 19.9 B | |
| Net Debt To EBITDA | 6.12 | 6.42 | |
| Debt To Equity | 9.14 | 8.68 | |
| Interest Debt Per Share | 130.36 | 123.84 | |
| Debt To Assets | 0.57 | 0.54 | |
| Long Term Debt To Capitalization | 0.78 | 0.82 | |
| Total Debt To Capitalization | 0.80 | 0.84 | |
| Debt Equity Ratio | 9.14 | 8.68 | |
| Debt Ratio | 0.57 | 0.54 | |
| Cash Flow To Debt Ratio | 0.07 | 0.06 |
Pair Trading with Brookfield Infrastructure
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brookfield Infrastructure position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brookfield Infrastructure will appreciate offsetting losses from the drop in the long position's value.Moving together with Brookfield Stock
The ability to find closely correlated positions to Brookfield Infrastructure could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brookfield Infrastructure when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brookfield Infrastructure - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brookfield Infrastructure Partners to buy it.
The correlation of Brookfield Infrastructure is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brookfield Infrastructure moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brookfield Infrastructure moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brookfield Infrastructure can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Brookfield Stock Analysis
When running Brookfield Infrastructure's price analysis, check to measure Brookfield Infrastructure'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 Brookfield Infrastructure is operating at the current time. Most of Brookfield Infrastructure's value examination focuses on studying past and present price action to predict the probability of Brookfield Infrastructure's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brookfield Infrastructure's price. Additionally, you may evaluate how the addition of Brookfield Infrastructure 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.