Baldwin Insurance Current Debt
| BWIN Stock | 40.60 0.77 1.86% |
At this time, Baldwin Insurance's Interest Debt Per Share is very stable compared to the past year. As of the 18th of December 2024, Long Term Debt To Capitalization is likely to grow to 0.74, while Long Term Debt is likely to drop about 1.1 B. With a high degree of financial leverage come high-interest payments, which usually reduce Baldwin Insurance's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.43864524 | Current Value 0.42 | Quarterly Volatility 36.52796067 |
Given that Baldwin Insurance's 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 Baldwin Insurance 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 Baldwin Insurance to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Baldwin Insurance is said to be less leveraged. If creditors hold a majority of Baldwin Insurance's assets, the Company is said to be highly leveraged.
At this time, Baldwin Insurance's Total Current Liabilities is very stable compared to the past year. As of the 18th of December 2024, Liabilities And Stockholders Equity is likely to grow to about 3.7 B, while Non Current Liabilities Total is likely to drop about 772.2 M. Baldwin |
Baldwin Insurance Financial Rating
The Baldwin Insurance financial ratings play a critical role in determining how much Baldwin Insurance 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 Baldwin Insurance's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (3.01) | Unlikely Manipulator | View |
Baldwin Insurance Total Assets Over Time
Baldwin Insurance Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Baldwin Insurance 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.Baldwin Insurance Debt Ratio | 42.0 |
Baldwin Short Long Term Debt Total
Short Long Term Debt Total |
|
Understaning Baldwin Insurance Use of Financial Leverage
Leverage ratios show Baldwin Insurance'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 Baldwin Insurance'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 | ||
| Short and Long Term Debt Total | 1.6 B | 1.7 B | |
| Net Debt | 1.5 B | 1.6 B | |
| Short Term Debt | 243.6 M | 255.8 M | |
| Long Term Debt | 1.3 B | 1.1 B | |
| Short and Long Term Debt | 226.9 M | 238.3 M | |
| Net Debt To EBITDA | 13.15 | 13.81 | |
| Debt To Equity | 2.74 | 2.88 | |
| Interest Debt Per Share | 27.53 | 28.91 | |
| Debt To Assets | 0.44 | 0.42 | |
| Long Term Debt To Capitalization | 0.70 | 0.74 | |
| Total Debt To Capitalization | 0.73 | 0.77 | |
| Debt Equity Ratio | 2.74 | 2.88 | |
| Debt Ratio | 0.44 | 0.42 | |
| Cash Flow To Debt Ratio | 0.03 | 0.03 |
Pair Trading with Baldwin Insurance
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Baldwin Insurance position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Baldwin Insurance will appreciate offsetting losses from the drop in the long position's value.Moving together with Baldwin Stock
Moving against Baldwin Stock
| 0.66 | V | Visa Class A | PairCorr |
| 0.59 | C | Citigroup Fiscal Year End 10th of January 2025 | PairCorr |
| 0.57 | WTW | Willis Towers Watson | PairCorr |
| 0.57 | AX | Axos Financial | PairCorr |
| 0.54 | EHTH | eHealth Trending | PairCorr |
The ability to find closely correlated positions to Baldwin Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Baldwin Insurance when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Baldwin Insurance - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The Baldwin Insurance to buy it.
The correlation of Baldwin Insurance is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Baldwin Insurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Baldwin Insurance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Baldwin Insurance can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out the analysis of Baldwin Insurance Fundamentals Over Time. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Is Insurance Brokers 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 Baldwin Insurance. If investors know Baldwin 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 Baldwin Insurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.80) | Revenue Per Share 21.258 | Quarterly Revenue Growth 0.144 | Return On Assets 0.0151 | Return On Equity (0.08) |
The market value of Baldwin Insurance is measured differently than its book value, which is the value of Baldwin that is recorded on the company's balance sheet. Investors also form their own opinion of Baldwin Insurance's value that differs from its market value or its book value, called intrinsic value, which is Baldwin Insurance'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 Baldwin Insurance's market value can be influenced by many factors that don't directly affect Baldwin Insurance'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 Baldwin Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Baldwin Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Baldwin Insurance'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.