Fortress Transportation Morgan Bond
FTAIN Stock | USD 25.92 0.17 0.66% |
Fortress Transportation has over 2.52 Billion in debt which may indicate that it relies heavily on debt financing. At this time, Fortress Transportation's Interest Debt Per Share is very stable compared to the past year. As of the 2nd of March 2025, Long Term Debt To Capitalization is likely to grow to 0.88, while Long Term Debt is likely to drop about 2.3 B. With a high degree of financial leverage come high-interest payments, which usually reduce Fortress Transportation's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Fortress Transportation'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. Fortress Transportation'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 Fortress Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Fortress Transportation's stakeholders.
For most companies, including Fortress Transportation, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Fortress Transportation and, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Fortress Transportation's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
At this time, Fortress Transportation's Non Current Liabilities Total is very stable compared to the past year. As of the 2nd of March 2025, Non Current Liabilities Other is likely to grow to about 171.9 M, while Total Current Liabilities is likely to drop about 88.3 M. Fortress |
Given the importance of Fortress Transportation's capital structure, the first step in the capital decision process is for the management of Fortress Transportation 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 Fortress Transportation and to issue bonds at a reasonable cost.
Popular Name | Fortress Transportation Morgan Stanley 3591 |
Specialization | Rental & Leasing Services |
Equity ISIN Code | US34960P4081 |
Bond Issue ISIN Code | US61744YAK47 |
S&P Rating | Others |
Maturity Date | 22nd of July 2028 |
Issuance Date | 24th of July 2017 |
Coupon | 3.591 % |
Fortress Transportation Outstanding Bond Obligations
Dana 575 percent | US235822AB96 | Details | |
FORTUNE BRANDS HOME | US34964CAA45 | Details | |
US34964CAE66 | US34964CAE66 | Details | |
FBINUS 45 25 MAR 52 | US34964CAG15 | Details | |
FBINUS 4 25 MAR 32 | US34964CAF32 | Details | |
US34960PAD33 | US34960PAD33 | Details | |
MPLX LP 4125 | US55336VAK61 | Details | |
MPLX LP 52 | US55336VAL45 | Details | |
FORTUNE BRANDS INC | US349631AG67 | Details | |
Morgan Stanley 3591 | US61744YAK47 | Details | |
Morgan Stanley 3971 | US61744YAL20 | Details | |
MGM Resorts International | US552953CD18 | Details | |
Valero Energy Partners | US91914JAA07 | Details |
Understaning Fortress Transportation Use of Financial Leverage
Leverage ratios show Fortress Transportation's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Fortress Transportation's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
Last Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 2.9 B | 3 B | |
Net Debt | 2.8 B | 2.9 B | |
Short Term Debt | 63.4 M | 75.7 M | |
Long Term Debt | 2.9 B | 2.3 B | |
Short and Long Term Debt | 90.5 M | 91.3 M | |
Debt To Equity | 12.92 | 9.32 | |
Debt To Assets | 0.76 | 0.80 | |
Net Debt To EBITDA | 5.26 | 8.54 | |
Interest Debt Per Share | 24.13 | 25.34 | |
Long Term Debt To Capitalization | 0.84 | 0.88 | |
Total Debt To Capitalization | 0.84 | 0.42 | |
Debt Equity Ratio | 12.92 | 9.32 | |
Debt Ratio | 0.76 | 0.80 | |
Cash Flow To Debt Ratio | 0.06 | 0.06 |
Other Information on Investing in Fortress Stock
Fortress Transportation financial ratios help investors to determine whether Fortress 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 Fortress with respect to the benefits of owning Fortress Transportation 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.