Gabelli Global Debt

GLU Stock  USD 16.32  0.02  0.12%   
At this time, Gabelli Global's Short Term Debt is comparatively stable compared to the past year. Net Debt To EBITDA is likely to gain to 0.01 in 2024, whereas Interest Debt Per Share is likely to drop 0.00003 in 2024. . Gabelli Global's financial risk is the risk to Gabelli Global stockholders that is caused by an increase in debt.
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
0.000195
Current Value
0.000242
Quarterly Volatility
0.00003153
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Gabelli Global's Liabilities And Stockholders Equity is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 389.3 K in 2024, whereas Total Current Liabilities is likely to drop slightly above 27.8 K in 2024.
  
Check out the analysis of Gabelli Global Fundamentals Over Time.

Gabelli Global Bond Ratings

Gabelli Global Utility financial ratings play a critical role in determining how much Gabelli Global 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 Gabelli Global's borrowing costs.
Piotroski F Score
6
HealthyView
Beneish M Score
(1.98)
Possible ManipulatorView

Gabelli Global Utility Debt to Cash Allocation

Gabelli Global Utility has 29.24 K in debt. Gabelli Global Utility has a current ratio of 16.85, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Gabelli to invest in growth at high rates of return.

Gabelli Global Total Assets Over Time

Gabelli Global Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Gabelli Global 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.

Gabelli Global Debt Ratio

    
  0.0242   
It appears most of the Gabelli Global's assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Gabelli Global's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Gabelli Global, which in turn will lower the firm's financial flexibility.

Gabelli Global Corporate Bonds Issued

Gabelli Net Debt

Net Debt

(9,306.15)

At this time, Gabelli Global's Net Debt is comparatively stable compared to the past year.

Understaning Gabelli Global Use of Financial Leverage

Gabelli Global's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Gabelli Global's current equity. If creditors own a majority of Gabelli Global's assets, the company is considered highly leveraged. Understanding the composition and structure of Gabelli Global's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last ReportedProjected for Next Year
Net Debt-8.9 K-9.3 K
Short Term Debt29.2 K30.7 K
Short and Long Term Debt Total29.2 K28.4 K
Net Debt To EBITDA 0.01  0.01 
Cash Flow To Debt Ratio 1.92  1.70 
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Thematic Opportunities

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Additional Tools for Gabelli Stock Analysis

When running Gabelli Global's price analysis, check to measure Gabelli Global's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gabelli Global is operating at the current time. Most of Gabelli Global's value examination focuses on studying past and present price action to predict the probability of Gabelli Global's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gabelli Global's price. Additionally, you may evaluate how the addition of Gabelli Global to your portfolios can decrease your overall portfolio volatility.

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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.