Blackline Corporate Bonds and Leverage Analysis
| BL Stock | USD 62.01 0.13 0.21% |
At this time, Blackline's Long Term Debt Total is quite stable compared to the past year. Debt To Equity is expected to rise to 5.59 this year, although the value of Net Debt To EBITDA will most likely fall to 9.29. . Blackline's financial risk is the risk to Blackline stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.66158804 | Current Value 0.69 | Quarterly Volatility 0.25866368 |
Blackline |
Given the importance of Blackline's capital structure, the first step in the capital decision process is for the management of Blackline 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 Blackline to issue bonds at a reasonable cost.
Blackline Bond Ratings
Blackline financial ratings play a critical role in determining how much Blackline 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 Blackline's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.17) | Unlikely Manipulator | View |
Blackline Debt to Cash Allocation
Many companies such as Blackline, 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.
Blackline reports 1.41 B of total liabilities. Blackline has a current ratio of 3.67, indicating that it is in good position to pay out its debt commitments in time. Note however, debt could still be an excellent tool for Blackline to invest in growth at high rates of return. Blackline Total Assets Over Time
Blackline Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Blackline uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Blackline Debt Ratio | 69.0 |
Blackline Corporate Bonds Issued
Blackline issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Blackline uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt.
Blackline Long Term Debt
Long Term Debt |
|
Understaning Blackline Use of Financial Leverage
Leverage ratios show Blackline's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Blackline's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 1.1 B | 1.2 B | |
| Short and Long Term Debt | 286.6 M | 300.9 M | |
| Short Term Debt | 254.1 M | 266.8 M | |
| Short and Long Term Debt Total | 1.4 B | 1.5 B | |
| Net Debt | 1.1 B | 1.2 B | |
| Long Term Debt Total | 1.6 B | 1.7 B | |
| Net Debt To EBITDA | 9.78 | 9.29 | |
| Debt To Equity | 5.33 | 5.59 | |
| Interest Debt Per Share | 22.94 | 24.08 | |
| Debt To Assets | 0.66 | 0.69 | |
| Long Term Debt To Capitalization | 0.81 | 0.85 | |
| Total Debt To Capitalization | 0.84 | 0.88 | |
| Debt Equity Ratio | 5.33 | 5.59 | |
| Debt Ratio | 0.66 | 0.69 | |
| Cash Flow To Debt Ratio | 0.09 | 0.10 |
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 ArchitectCheck out the analysis of Blackline Fundamentals Over Time. For more information on how to buy Blackline Stock please use our How to buy in Blackline Stock guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Application Software 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 Blackline. If investors know Blackline 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 Blackline listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.429 | Earnings Share 0.98 | Revenue Per Share 10.347 | Quarterly Revenue Growth 0.101 | Return On Assets 0.0095 |
The market value of Blackline is measured differently than its book value, which is the value of Blackline that is recorded on the company's balance sheet. Investors also form their own opinion of Blackline's value that differs from its market value or its book value, called intrinsic value, which is Blackline's 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 Blackline's market value can be influenced by many factors that don't directly affect Blackline's 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 Blackline's value and its price as these two are different measures arrived at by different means. Investors typically determine if Blackline is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Blackline's 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.