Landmark Bancorp Debt

LARK Stock  USD 24.72  0.35  1.44%   
Landmark Bancorp has over 99.03 Million in debt which may indicate that it relies heavily on debt financing. At this time, Landmark Bancorp's Debt To Assets are quite stable compared to the past year. Long Term Debt To Capitalization is expected to rise to 0.52 this year, although the value of Short Term Debt will most likely fall to about 10.9 M. . Landmark Bancorp's financial risk is the risk to Landmark Bancorp stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Landmark Bancorp'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. Landmark Bancorp'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 Landmark Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Landmark Bancorp's stakeholders.
For most companies, including Landmark Bancorp, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Landmark Bancorp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Landmark Bancorp'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
1.0366
Book Value
25.393
Operating Margin
0.3291
Profit Margin
0.2169
Return On Assets
0.0079
Liabilities And Stockholders Equity is expected to rise to about 1.9 B this year. Non Current Liabilities Total is expected to rise to about 1.7 B this year
  
Check out the analysis of Landmark Bancorp Fundamentals Over Time.
For more information on how to buy Landmark Stock please use our How to buy in Landmark Stock guide.

Landmark Bancorp Bond Ratings

Landmark Bancorp financial ratings play a critical role in determining how much Landmark Bancorp 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 Landmark Bancorp's borrowing costs.
Piotroski F Score
6
HealthyView
Beneish M Score
(2.91)
Unlikely ManipulatorView

Landmark Bancorp Debt to Cash Allocation

Landmark Bancorp currently holds 99.03 M in liabilities with Debt to Equity (D/E) ratio of 9.9, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Note, when we think about Landmark Bancorp's use of debt, we should always consider it together with its cash and equity.

Landmark Bancorp Total Assets Over Time

Landmark Bancorp Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Landmark Bancorp 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.

Landmark Bancorp Debt Ratio

    
  13.0   
It seems most of the Landmark Bancorp's assets are financed through equity. 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 Landmark Bancorp's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Landmark Bancorp, which in turn will lower the firm's financial flexibility.

Landmark Bancorp Corporate Bonds Issued

Landmark Short Long Term Debt Total

Short Long Term Debt Total

66.79 Million

At this time, Landmark Bancorp's Short and Long Term Debt Total is quite stable compared to the past year.

Understaning Landmark Bancorp Use of Financial Leverage

Leverage ratios show Landmark Bancorp'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 Landmark Bancorp'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 ReportedProjected for Next Year
Short and Long Term Debt Total113.9 M66.8 M
Net Debt60.3 M30.3 M
Short Term Debt11.4 M10.9 M
Long Term Debt113.9 M119.6 M
Long Term Debt Total33.4 M34.9 M
Short and Long Term Debt22.5 M36.4 M
Net Debt To EBITDA 2.98  4.52 
Debt To Equity 0.90  1.28 
Interest Debt Per Share 19.78  10.78 
Debt To Assets 0.07  0.13 
Long Term Debt To Capitalization 0.50  0.52 
Total Debt To Capitalization 0.50  0.55 
Debt Equity Ratio 0.90  1.28 
Debt Ratio 0.07  0.13 
Cash Flow To Debt Ratio 0.11  0.17 
Please read more on our technical analysis page.

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When determining whether Landmark Bancorp 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 Landmark 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 Landmark Bancorp Stock. Highlighted below are key reports to facilitate an investment decision about Landmark Bancorp Stock:
Check out the analysis of Landmark Bancorp Fundamentals Over Time.
For more information on how to buy Landmark Stock please use our How to buy in Landmark Stock guide.
You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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 Landmark Bancorp. If investors know Landmark 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 Landmark Bancorp 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
0.367
Dividend Share
0.83
Earnings Share
2.25
Revenue Per Share
10.403
Quarterly Revenue Growth
0.076
The market value of Landmark Bancorp is measured differently than its book value, which is the value of Landmark that is recorded on the company's balance sheet. Investors also form their own opinion of Landmark Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Landmark Bancorp'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 Landmark Bancorp's market value can be influenced by many factors that don't directly affect Landmark Bancorp'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 Landmark Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Landmark Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Landmark Bancorp'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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.