Kentucky First Debt
| KFFB Stock | USD 2.58 0.06 2.27% |
Kentucky First Federal has over 68.99 Million in debt which may indicate that it relies heavily on debt financing. The current year's Interest Debt Per Share is expected to grow to 10.15, whereas Net Debt is forecasted to decline to about 28.7 M. With a high degree of financial leverage come high-interest payments, which usually reduce Kentucky First's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Kentucky First'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. Kentucky First'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 Kentucky Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Kentucky First's stakeholders.
For most companies, including Kentucky First, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Kentucky First Federal, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Kentucky First'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 0.4444 | Book Value 5.935 | Operating Margin (0.04) | Profit Margin (0.24) | Return On Assets (0) |
Kentucky |
Kentucky First Bond Ratings
Kentucky First Federal financial ratings play a critical role in determining how much Kentucky First 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 Kentucky First's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (2.80) | Unlikely Manipulator | View |
Kentucky First Federal Debt to Cash Allocation
As Kentucky First Federal follows its natural business cycle, the capital allocation decisions will not magically go away. Kentucky First's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Kentucky First Federal currently holds 68.99 M in liabilities with Debt to Equity (D/E) ratio of 3.32, implying the company greatly relies on financing operations through barrowing. Note, when we think about Kentucky First's use of debt, we should always consider it together with its cash and equity.Kentucky First Total Assets Over Time
Kentucky First Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Kentucky First 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.Kentucky First Debt Ratio | 14.0 |
Kentucky First Corporate Bonds Issued
Most Kentucky bonds can be classified according to their maturity, which is the date when Kentucky First Federal has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Kentucky Net Debt
Net Debt |
|
Understaning Kentucky First Use of Financial Leverage
Kentucky First's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Kentucky First's total debt position, including all outstanding debt obligations, and compares it with Kentucky First's equity. Financial leverage can amplify the potential profits to Kentucky First's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Kentucky First is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | 51.4 M | 28.7 M | |
| Short and Long Term Debt Total | 69 M | 49.7 M | |
| Long Term Debt | 69 M | 42.1 M | |
| Short Term Debt | 69 M | 40.3 M | |
| Short and Long Term Debt | 76.1 M | 42.6 M | |
| Net Debt To EBITDA | 48.05 | 39.64 | |
| Debt To Equity | 1.44 | 0.77 | |
| Interest Debt Per Share | 9.66 | 10.15 | |
| Debt To Assets | 0.18 | 0.14 | |
| Long Term Debt To Capitalization | 0.59 | 0.40 | |
| Total Debt To Capitalization | 0.59 | 0.40 | |
| Debt Equity Ratio | 1.44 | 0.77 | |
| Debt Ratio | 0.18 | 0.14 | |
| Cash Flow To Debt Ratio | (0.02) | (0.02) |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Kentucky First Federal offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Kentucky First's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Kentucky First Federal Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Kentucky First Federal Stock:Check out the analysis of Kentucky First Fundamentals Over Time. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Regional Banks 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 Kentucky First. If investors know Kentucky 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 Kentucky First 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 (0.74) | Earnings Share (0.19) | Revenue Per Share 0.892 | Quarterly Revenue Growth (0.04) | Return On Assets (0) |
The market value of Kentucky First Federal is measured differently than its book value, which is the value of Kentucky that is recorded on the company's balance sheet. Investors also form their own opinion of Kentucky First's value that differs from its market value or its book value, called intrinsic value, which is Kentucky First'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 Kentucky First's market value can be influenced by many factors that don't directly affect Kentucky First'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 Kentucky First's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kentucky First is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kentucky First'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.