Ashford Hospitality has 4.15
B in debt. The entity has 4.15
B in debt. The firm has a current ratio of 2.92, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ashford Hospitality has an asset utilization ratio of 28.6 percent. This implies that the company is making $0.29 for each dollar of assets. An increasing asset utilization means that Ashford Hospitality Trust is more efficient with each dollar of assets it utilizes for everyday operations.
Ashford Hospitality financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Ashford Hospitality, including all of Ashford Hospitality's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Ashford Hospitality assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Ashford Hospitality debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Ashford Total Liabilities
Ashford Hospitality Trust liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Ashford Hospitality Trust has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Ashford Hospitality balance sheet include debt obligations and money owed to different Ashford Hospitality vendors, workers, and loan providers. Below is the chart of Ashford short long-term liabilities accounts currently reported on its balance sheet.
You can use Ashford Hospitality Trust
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Ashford Hospitality's Liquidity
Ashford Hospitality
financial leverage refers to using borrowed capital as a funding source to finance Ashford Hospitality Trust ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ashford Hospitality financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ashford Hospitality's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ashford Hospitality's 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). Please check the
breakdown between Ashford Hospitality's total debt and its cash.
What is the case for Ashford Hospitality Investors
Ashford Hospitality reported the last year revenue of 1.42
B. Reported Net Loss for the year was (202.82
M) with profit before taxes, overhead, and interest of 410.26
M.
Asset Breakdown
| Total Assets | 4.79 Billion |
| Current Assets | 449.02 Million |
| Goodwill | 817,974 |
Ashford Hospitality implied volatility may change after the gain
The coefficient of variation is down to 764.27 as of today. Ashford Hospitality Trust is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Ashford Hospitality implied risk.
Our Bottom Line On Ashford Hospitality
Whereas many other companies within the reit—hotel & motel industry are still a little expensive, even after the recent corrections, Ashford Hospitality may offer a potential longer-term growth to private investors. The bottom line, as of the 19th of July 2020, we believe that at this point, Ashford Hospitality is
overvalued with
below average probability of financial unrest within the next 2 years. Our final buy-sell recommendation on the firm is
Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Ashford Hospitality Trust. Please refer to our
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