Canoe EIT Income Morgan Bond
| EIT-UN Stock | CAD 15.07 0.21 1.37% |
Canoe EIT Income holds a debt-to-equity ratio of 0.299. At present, Canoe EIT's Short and Long Term Debt Total 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 119 M, whereas Net Debt is forecasted to decline to about 53.4 M. With a high degree of financial leverage come high-interest payments, which usually reduce Canoe EIT's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Canoe EIT'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. Canoe EIT'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 Canoe Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Canoe EIT's stakeholders.
For most companies, including Canoe EIT, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Canoe EIT Income, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Canoe EIT'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 1.0644 | Book Value 13.935 | Operating Margin 0.9284 | Profit Margin 0.8714 | Return On Assets 0.099 |
Canoe |
Given the importance of Canoe EIT's capital structure, the first step in the capital decision process is for the management of Canoe EIT to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Canoe EIT Income to issue bonds at a reasonable cost.
| Popular Name | Canoe EIT Morgan Stanley 3971 |
| Specialization | Financial Services |
| Equity ISIN Code | CA13780R1091 |
| Bond Issue ISIN Code | US61744YAL20 |
| S&P Rating | Others |
| Maturity Date | 22nd of July 2038 |
| Issuance Date | 24th of July 2017 |
| Coupon | 3.971 % |
Canoe EIT Income Outstanding Bond Obligations
| Boeing Co 2196 | US097023DG73 | Details | |
| Morgan Stanley 3591 | US61744YAK47 | Details | |
| Morgan Stanley 3971 | US61744YAL20 | Details |
Understaning Canoe EIT Use of Financial Leverage
Canoe EIT's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Canoe EIT's total debt position, including all outstanding debt obligations, and compares it with Canoe EIT's equity. Financial leverage can amplify the potential profits to Canoe EIT's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Canoe EIT is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 96 M | 122.1 M | |
| Net Debt | 81.2 M | 53.4 M | |
| Short Term Debt | 96 M | 119 M | |
| Net Debt To EBITDA | 42.32 | 44.44 | |
| Debt To Equity | 0.04 | 0.04 | |
| Interest Debt Per Share | 0.60 | 0.57 | |
| Debt To Assets | 0.04 | 0.03 | |
| Total Debt To Capitalization | 0.04 | 0.04 | |
| Debt Equity Ratio | 0.04 | 0.04 | |
| Debt Ratio | 0.04 | 0.03 | |
| Cash Flow To Debt Ratio | (1.17) | (1.12) |
Pair Trading with Canoe EIT
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 Canoe EIT 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 Canoe EIT will appreciate offsetting losses from the drop in the long position's value.Moving together with Canoe Stock
Moving against Canoe Stock
The ability to find closely correlated positions to Canoe EIT could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canoe EIT 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 Canoe EIT - 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 Canoe EIT Income to buy it.
The correlation of Canoe EIT 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 Canoe EIT moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canoe EIT Income 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 Canoe EIT 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.Other Information on Investing in Canoe Stock
Canoe EIT financial ratios help investors to determine whether Canoe Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Canoe with respect to the benefits of owning Canoe EIT security.
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.