BrightSpring Health Current Debt
| BTSG Stock | 21.19 0.30 1.44% |
The current Short and Long Term Debt Total is estimated to decrease to about 3.6 B. The current Net Debt is estimated to decrease to about 3.6 B. BrightSpring Health's financial risk is the risk to BrightSpring Health stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.6 | Current Value 0.52 | Quarterly Volatility 0.03493812 |
Given that BrightSpring Health'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 BrightSpring Health 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 BrightSpring Health to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, BrightSpring Health is said to be less leveraged. If creditors hold a majority of BrightSpring Health's assets, the Company is said to be highly leveraged.
The current Total Current Liabilities is estimated to decrease to about 976.3 M. The current Liabilities And Stockholders Equity is estimated to decrease to about 5.6 BBrightSpring |
BrightSpring Health Financial Rating
BrightSpring Health Services, financial ratings play a critical role in determining how much BrightSpring Health 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 BrightSpring Health's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.16) | Unlikely Manipulator | View |
BrightSpring Health Common Stock Shares Outstanding Over Time
BrightSpring Health Assets Financed by Debt
The debt-to-assets ratio shows the degree to which BrightSpring Health 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.BrightSpring Health Debt Ratio | 52.0 |
BrightSpring Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning BrightSpring Health Use of Financial Leverage
BrightSpring Health's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures BrightSpring Health's total debt position, including all outstanding debt obligations, and compares it with BrightSpring Health's equity. Financial leverage can amplify the potential profits to BrightSpring Health's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if BrightSpring Health is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 4.2 B | 3.6 B | |
| Net Debt | 4.2 B | 3.6 B | |
| Short Term Debt | 131.6 M | 116.2 M | |
| Long Term Debt | 3.8 B | 3.5 B | |
| Short and Long Term Debt | 37.1 M | 34.6 M | |
| Net Debt To EBITDA | 9.42 | 6.80 | |
| Debt To Equity | 5.65 | 3.83 | |
| Interest Debt Per Share | 26.84 | 25.50 | |
| Debt To Assets | 0.60 | 0.52 | |
| Long Term Debt To Capitalization | 0.77 | 0.65 | |
| Total Debt To Capitalization | 0.78 | 0.66 | |
| Debt Equity Ratio | 5.65 | 3.83 | |
| Debt Ratio | 0.60 | 0.52 | |
| Cash Flow To Debt Ratio | 0.07 | 0.05 |
Currently Active Assets on Macroaxis
When determining whether BrightSpring Health 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 BrightSpring 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 Brightspring Health Services, Stock. Highlighted below are key reports to facilitate an investment decision about Brightspring Health Services, Stock:Check out the analysis of BrightSpring Health Fundamentals Over Time. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is Health Care Providers & Services 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 BrightSpring Health. If investors know BrightSpring 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 BrightSpring Health 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 2.333 | Earnings Share (0.22) | Revenue Per Share | Quarterly Revenue Growth 0.288 | Return On Assets |
The market value of BrightSpring Health is measured differently than its book value, which is the value of BrightSpring that is recorded on the company's balance sheet. Investors also form their own opinion of BrightSpring Health's value that differs from its market value or its book value, called intrinsic value, which is BrightSpring Health'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 BrightSpring Health's market value can be influenced by many factors that don't directly affect BrightSpring Health'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 BrightSpring Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if BrightSpring Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BrightSpring Health'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.