Asset Breakdown
| Total Assets | 471.5 Billion | |
| Current Assets | 161.59 Billion | |
| Goodwill | 22.38 Billion |
You think Charles Schwab (USA Stocks:SCHW) debt is an issue for sophisticated investors?
 | By Aina Ster | Macroaxis Story |
Charles Schwab Corp currently has $37.88 billion in liabilities, with a Debt to Equity (D/E) ratio of 0.71. This ratio is roughly average when compared to similar companies. The asset utilization indicator is a measure of the revenue generated for every dollar of assets reported by a company. Charles Schwab has an asset utilization ratio of 3.76 percent, which means that the company generates $0.0376 for each dollar of assets. An increasing asset utilization ratio indicates that Charles Schwab Corp is becoming more efficient in using each dollar of assets for its daily operations.
In-depth evaluation
The Charles Schwab Corp (USA Stocks:SCHW) presents a compelling investment opportunity from a leverage perspective. With a robust net income from continuing operations of 7.2B, the company demonstrates a strong capacity to cover its selling general and administrative expenses, which currently stand at 5.9B. However, a change in working capital of -8.6B indicates a significant decrease, which may signal liquidity issues. Nonetheless, the company's total stockholder equity is substantial at 36.6B, providing a solid foundation for potential investors. Despite the recent change in working capital, Charles Schwab's financial position remains strong, making it a potentially profitable investment for those looking to capitalize on their holdings. The timing for investment, however, should be carefully considered in light of the company's financial performance and market conditions.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
As of September 11, 2023, Charles Schwab Corp, a prominent player in the Capital Markets industry, has shown a strong financial position with a net interest income of $10.7B and an operating income of $10.9B. Despite a change in cash of a loss of $34.6B and other cashflows from financing activities showing a loss of $54.7B, the company holds a substantial amount of cash, amounting to $40.2B. The company's total cashflows from investing activities have reached $32B, and their investments stand at $33.2B. The company also boasts a healthy balance sheet with property, plant, and equipment net worth $4.6B and intangible assets worth $8.8B. With a strong buy recommendation from 10 analysts and a highest estimated target price of $95, it may be the right time to leverage your investment in Charles Schwab Corp, a company with a robust financial footing and promising prospects in the Capital Markets service category. The upcoming fiscal quarter for Charles Schwab Corp is projected to end on September 30, 2023. Currently, Charles Schwab's Receivables Turnover remains relatively stable compared to the previous year, with a reported Receivables Turnover of 0.28 in 2022. The Cash and Equivalents Turnover is anticipated to rise to 0.54 in 2023, while Average Assets are expected to slightly exceed $491.2 billion in the same year. As many millennials are showing a tendency to steer clear of the capital markets space, it seems prudent to take a closer look at Charles Schwab Corp and attempt to decipher its current market trends. Let's evaluate whether Charles Schwab's shares are reasonably priced as we approach October.Charles Schwab financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Charles Schwab, including all of Charles Schwab'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 Charles Schwab assets, the company is considered highly leveraged. Understanding the composition and structure of overall Charles Schwab 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.
How important is Charles Schwab's Liquidity
Charles Schwab financial leverage refers to using borrowed capital as a funding source to finance Charles Schwab Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Charles Schwab 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 Charles Schwab'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 Charles Schwab'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 Charles Schwab's total debt and its cash.
What is the case for Charles Schwab Investors
Charles Schwab Corp reported the previous year's revenue of 20.76 B. Net Income was 7.18 B with profit before overhead, payroll, taxes, and interest of 20.17 B.
Charles Schwab Corp (USA Stocks: SCHW) has been a notable player in the Financial Services industry, particularly in the Capital Markets. With a market capitalization of $108.05 billion and a current valuation of $119.08 billion, it is a substantial entity in the domestic primary sector. The company has a positive net income from continuing operations, reporting $7.2 billion. This income contributes to a profit margin of 0.33%, indicating that the company is efficiently transforming revenue into profit. The company's financial health is further evidenced by its total assets, which amount to a staggering $551.8 billion.Despite its significant short term debt of $17.1 billion and long term debt of $20.8 billion, the company's debt to equity ratio is relatively low at 0.71%. This suggests that the company is not overly reliant on borrowing to finance its operations. On the investment side, Charles Schwab Corp has a five year return of 1.19% and a risk adjusted performance of 0.0429. Furthermore, it has a respectable Sortino Ratio of 0.0586, indicating that the company has a satisfactory return relative to the downside risk. In conclusion, Charles Schwab Corp's strong financial position and positive investment metrics suggest that now may be a good time to capitalize on your investment in the company. However, as with any investment decision, it is crucial to consider your individual financial circumstances and risk tolerance. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Aina Ster do not own shares of Charles Schwab Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.