Marine Petroleum Debt
| MARPS Stock | USD 3.91 0.06 1.51% |
Marine Petroleum Trust holds a debt-to-equity ratio of 0.006. Short and Long Term Debt Total is likely to gain to about 13.4 B in 2024, whereas Net Debt is likely to drop (1 M) in 2024. . Marine Petroleum's financial risk is the risk to Marine Petroleum stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Marine Petroleum'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. Marine Petroleum'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 Marine Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Marine Petroleum's stakeholders.
For most companies, including Marine Petroleum, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Marine Petroleum Trust, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Marine Petroleum'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 7.7435 | Book Value 0.483 | Operating Margin 0.4666 | Profit Margin 0.7102 | Return On Assets 0.5422 |
Marine |
Marine Petroleum Bond Ratings
Marine Petroleum Trust financial ratings play a critical role in determining how much Marine Petroleum 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 Marine Petroleum's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (111.09) | Unlikely Manipulator | View |
Marine Petroleum Trust Debt to Cash Allocation
Many companies such as Marine Petroleum, 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.
Marine Petroleum Trust has accumulated 115.77 M in total debt with debt to equity ratio (D/E) of 0.01, which may suggest the company is not taking enough advantage from borrowing. Marine Petroleum Trust has a current ratio of 177.01, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. Note, when we think about Marine Petroleum's use of debt, we should always consider it together with its cash and equity.Marine Petroleum Total Assets Over Time
Marine Petroleum 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 Marine Petroleum's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Marine Petroleum, which in turn will lower the firm's financial flexibility.Marine Petroleum Corporate Bonds Issued
Marine Net Debt
Net Debt |
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Understaning Marine Petroleum Use of Financial Leverage
Marine Petroleum's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Marine Petroleum's current equity. If creditors own a majority of Marine Petroleum's assets, the company is considered highly leveraged. Understanding the composition and structure of Marine Petroleum's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Net Debt | -965.2 K | -1 M | |
| Short and Long Term Debt Total | 12.8 B | 13.4 B | |
| Short Term Debt | 786.6 M | 415.6 M | |
| Net Debt To EBITDA | (1.35) | (1.42) |
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Additional Tools for Marine Stock Analysis
When running Marine Petroleum's price analysis, check to measure Marine Petroleum's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Marine Petroleum is operating at the current time. Most of Marine Petroleum's value examination focuses on studying past and present price action to predict the probability of Marine Petroleum's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Marine Petroleum's price. Additionally, you may evaluate how the addition of Marine Petroleum to your portfolios can decrease your overall portfolio volatility.
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.