Aviva PLC ADR Valero Bond
AVVIYDelisted Stock | USD 10.40 0.07 0.68% |
Aviva PLC ADR holds a debt-to-equity ratio of 0.479. With a high degree of financial leverage come high-interest payments, which usually reduce Aviva PLC's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Aviva PLC'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. Aviva PLC'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 Aviva Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Aviva PLC's stakeholders.
For most companies, including Aviva PLC, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Aviva PLC ADR, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Aviva PLC's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Aviva |
Given the importance of Aviva PLC's capital structure, the first step in the capital decision process is for the management of Aviva PLC to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Aviva PLC ADR to issue bonds at a reasonable cost.
Popular Name | Aviva PLC Valero Energy Partners |
Specialization | Insurance - Life |
Equity ISIN Code | US05382A1043 |
Bond Issue ISIN Code | US91914JAA07 |
S&P Rating | Others |
Maturity Date | 15th of December 2026 |
Issuance Date | 9th of December 2016 |
Coupon | 4.375 % |
Aviva PLC ADR Outstanding Bond Obligations
Dana 575 percent | US235822AB96 | Details | |
Volcan Compania Minera | USP98047AC08 | Details | |
Boeing Co 2196 | US097023DG73 | Details | |
AVNET INC 4625 | US053807AS28 | Details | |
AVT 55 01 JUN 32 | US053807AV56 | Details | |
AVT 3 15 MAY 31 | US053807AU73 | Details | |
HSBC Holdings PLC | US404280DR76 | Details | |
MPLX LP 4875 | US55336VAG59 | Details | |
MPLX LP 4125 | US55336VAK61 | Details | |
MPLX LP 52 | US55336VAL45 | Details | |
International Game Technology | US460599AD57 | Details | |
BNP Paribas FRN | USF1R15XK367 | Details | |
Morgan Stanley 3591 | US61744YAK47 | Details | |
Morgan Stanley 3971 | US61744YAL20 | Details | |
MGM Resorts International | US552953CD18 | Details | |
Valero Energy Partners | US91914JAA07 | Details | |
AerCap Global Aviation | US00773HAA59 | Details |
Understaning Aviva PLC Use of Financial Leverage
Understanding the structure of Aviva PLC's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Aviva PLC's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
Aviva plc provides various insurance, retirement, investment, and savings products in the United Kingdom, Ireland, Canada, and internationally. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom. Aviva Plc operates under InsuranceDiversified classification in the United States and is traded on OTC Exchange. It employs 22062 people. Please read more on our technical analysis page.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Consideration for investing in Aviva Pink Sheet
If you are still planning to invest in Aviva PLC ADR check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Aviva PLC's history and understand the potential risks before investing.
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Transaction History View history of all your transactions and understand their impact on performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |
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.