Amplify ETF Debt
| GAMR Etf | USD 67.88 0.01 0.01% |
Amplify ETF Trust holds a debt-to-equity ratio of 0.1. . Amplify ETF's financial risk is the risk to Amplify ETF stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Amplify ETF'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. Amplify ETF's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the ETF is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Amplify Etf's retail investors understand whether an upcoming fall or rise in the market will negatively affect Amplify ETF's stakeholders.
For most companies, including Amplify ETF, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Amplify ETF Trust, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Amplify ETF's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Total Assets 42.6 M |
Given that Amplify ETF's debt-to-equity ratio measures a ETF's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Amplify ETF 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 Amplify ETF to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Amplify ETF is said to be less leveraged. If creditors hold a majority of Amplify ETF's assets, the ETF is said to be highly leveraged.
Amplify |
Amplify ETF Trust Debt to Cash Allocation
Many companies such as Amplify ETF, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Amplify ETF Trust currently holds 9.01 M in liabilities with Debt to Equity (D/E) ratio of 0.1, which may suggest the company is not taking enough advantage from borrowing. Amplify ETF Trust has a current ratio of 2.52, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Amplify ETF until it has trouble settling it off, either with new capital or with free cash flow. So, Amplify ETF's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Amplify ETF Trust sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Amplify to invest in growth at high rates of return. When we think about Amplify ETF's use of debt, we should always consider it together with cash and equity.Amplify ETF Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Amplify ETF's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Amplify ETF, which in turn will lower the firm's financial flexibility.Amplify ETF Corporate Bonds Issued
Understaning Amplify ETF Use of Financial Leverage
Amplify ETF's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Amplify ETF's current equity. If creditors own a majority of Amplify ETF's assets, the company is considered highly leveraged. Understanding the composition and structure of Amplify ETF's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
The index tracks the performance of the common stock of exchange-listed companies across the globe that are actively engaged in a business activity supporting or utilizing the video gaming industry. Etfmg Video is traded on NYSEARCA Exchange in the United States. Please read more on our technical analysis page.
Pair Trading with Amplify ETF
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 Amplify ETF 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 Amplify ETF will appreciate offsetting losses from the drop in the long position's value.Moving together with Amplify Etf
| 0.73 | XLC | Communication Services | PairCorr |
| 0.78 | VOX | Vanguard Communication | PairCorr |
| 0.78 | FCOM | Fidelity MSCI Commun | PairCorr |
| 0.74 | IYZ | IShares Telecommunicatio | PairCorr |
| 0.81 | ESPO | VanEck Video Gaming | PairCorr |
Moving against Amplify Etf
| 0.53 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
The ability to find closely correlated positions to Amplify ETF could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amplify ETF 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 Amplify ETF - 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 Amplify ETF Trust to buy it.
The correlation of Amplify ETF 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 Amplify ETF moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amplify ETF Trust 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 Amplify ETF 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.Check out the analysis of Amplify ETF Fundamentals Over Time. To learn how to invest in Amplify Etf, please use our How to Invest in Amplify ETF guide.You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
The market value of Amplify ETF Trust is measured differently than its book value, which is the value of Amplify that is recorded on the company's balance sheet. Investors also form their own opinion of Amplify ETF's value that differs from its market value or its book value, called intrinsic value, which is Amplify ETF'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 Amplify ETF's market value can be influenced by many factors that don't directly affect Amplify ETF'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 Amplify ETF's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amplify ETF is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amplify ETF'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.