Trustcash Holdings Debt
The Trustcash Holdings' current Short and Long Term Debt is estimated to increase to about 1207500 T. The Trustcash Holdings' current Long Term Debt is estimated to increase to about 845.2 K With a high degree of financial leverage come high-interest payments, which usually reduce Trustcash Holdings' Earnings Per Share (EPS).
Given that Trustcash Holdings' debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Trustcash Holdings 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 Trustcash Holdings to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Trustcash Holdings is said to be less leveraged. If creditors hold a majority of Trustcash Holdings' assets, the Company is said to be highly leveraged.
The current Total Current Liabilities is estimated to decrease to about 433.5 K. The current Change To Liabilities is estimated to decrease to 6,050Trustcash |
Trustcash Holdings Bond Ratings
Trustcash Holdings financial ratings play a critical role in determining how much Trustcash Holdings 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 Trustcash Holdings' borrowing costs.| Piotroski F Score | 1 | Very Weak | View |
| Beneish M Score | (3.98) | Unlikely Manipulator | View |
Trustcash Holdings Debt to Cash Allocation
As Trustcash Holdings follows its natural business cycle, the capital allocation decisions will not magically go away. Trustcash Holdings' 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.
Trustcash Holdings currently holds 1000000 T in liabilities. Trustcash Holdings has a current ratio of 0.19, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Trustcash Holdings' use of debt, we should always consider it together with its cash and equity.Trustcash Holdings Total Assets Over Time
Trustcash Holdings 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 Trustcash Holdings' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Trustcash Holdings, which in turn will lower the firm's financial flexibility.Trustcash Holdings Corporate Bonds Issued
Most Trustcash bonds can be classified according to their maturity, which is the date when Trustcash Holdings 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.
Trustcash Short Long Term Debt
Short Long Term Debt |
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Understaning Trustcash Holdings Use of Financial Leverage
Understanding the composition and structure of Trustcash Holdings' debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Trustcash Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt | 92233.7 T | 92233.7 T | |
| Long Term Debt | 805 K | 845.2 K |
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When determining whether Trustcash Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Trustcash Holdings' 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 Trustcash Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Trustcash Holdings Stock:Check out the analysis of Trustcash Holdings Fundamentals Over Time. For more detail on how to invest in Trustcash Stock please use our How to Invest in Trustcash Holdings guide.You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Commercial Services & Supplies 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 Trustcash Holdings. If investors know Trustcash 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 Trustcash Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Revenue Per Share 0.002 | Quarterly Revenue Growth 2.23 |
The market value of Trustcash Holdings is measured differently than its book value, which is the value of Trustcash that is recorded on the company's balance sheet. Investors also form their own opinion of Trustcash Holdings' value that differs from its market value or its book value, called intrinsic value, which is Trustcash Holdings' 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 Trustcash Holdings' market value can be influenced by many factors that don't directly affect Trustcash Holdings' 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 Trustcash Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Trustcash Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Trustcash Holdings' 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.