Eneos Holdings ADR ENERGY Bond

JXHLY Stock  USD 9.88  0.99  9.11%   
Eneos Holdings ADR holds a debt-to-equity ratio of 1.081. With a high degree of financial leverage come high-interest payments, which usually reduce Eneos Holdings' Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

Eneos Holdings' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Eneos Holdings' 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 Eneos Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Eneos Holdings' stakeholders.
For most companies, including Eneos Holdings, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Eneos Holdings ADR, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Eneos Holdings' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
  
Check out the analysis of Eneos Holdings Fundamentals Over Time.
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Given the importance of Eneos Holdings' capital structure, the first step in the capital decision process is for the management of Eneos Holdings 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 Eneos Holdings ADR to issue bonds at a reasonable cost.
Popular NameEneos Holdings ENERGY TRANSFER PARTNERS
Equity ISIN CodeUS29279T1097
Bond Issue ISIN CodeUS29273RAR03
S&P Rating
Others
Maturity Date1st of February 2042
Issuance Date17th of January 2012
Coupon6.5 %
View All Eneos Holdings Outstanding Bonds

Eneos Holdings ADR Outstanding Bond Obligations

Dana 575 percentUS235822AB96Details
Boeing Co 2196US097023DG73Details
ENERGY TRANSFER PARTNERSUS29273RAP47Details
ENERGY TRANSFER PARTNERSUS29273RAR03Details
ENERGY TRANSFER PARTNERSUS29273RAJ86Details
ENERGY TRANSFER PARTNERSUS29273RAZ29Details
ENERGY TRANSFER PARTNERSUS29273RAT68Details
ET 783107 01 NOV 66US29273RBA68Details
ENERGY TRANSFER PARTNERSUS29273RBC25Details
ENERGY TRANSFER PARTNERSUS29273RBD08Details
ENERGY TRANSFER PARTNERSUS29273RBJ77Details
ET 555 15 FEB 28US29273VAP58Details
ENERGY TRANSFER PARTNERSUS29273RBK41Details
ET 575 15 FEB 33US29273VAQ32Details
ENERGY TRANSFER PARTNERSUS29273RBL24Details
ENERGY TRANSFER PARTNERSUS29273RBE80Details
ET 675US29273VAL45Details
ENERGY TRANSFER PARTNERSUS29273RBF55Details
Energy Transfer 7125US29273VAM28Details
ENERGY TRANSFER PARTNERSUS29273RBG39Details
US29273VAN01US29273VAN01Details
ENERGY TRANSFER OPERUS29278NAG88Details
ENERGY TRANSFER OPERUS29278NAD57Details
ENERGY TRANSFER OPERUS29278NAE31Details
ENERGY TRANSFER OPERUS29278NAF06Details
ENERGY TRANSFER OPERATINGUS29278NAQ60Details
ENERGY TRANSFER PARTNERSUS29273RAF64Details
ENERGY TRANSFER OPERATINGUS29278NAR44Details
ENERGY TRANSFER OPERATINGUS29278NAP87Details
ENERGY TRANSFER OPERATINGUS29278NAN30Details
MPLX LP 4875US55336VAG59Details
ENERGIZER HLDGS INCUS29272WAD11Details
ENERGIZER HLDGS INCUS29272WAC38Details
US29279XAA81US29279XAA81Details
US29272WAF68US29272WAF68Details
MPLX LP 4125US55336VAK61Details
MPLX LP 52US55336VAL45Details
ENEL CHILE SUS29278DAA37Details
EnerSys 4375 percentUS29275YAC66Details
ENEL AMERICAS SUS29274FAF18Details
ENERGY TRANSFER OPERUS29279FAA75Details
ENELIM 3625 25 MAY 27US29278GAA67Details
ENELIM 4875 14 JUN 29US29278GAK40Details
ENELIM 35 06 APR 28US29278GAF54Details
ENELIM 475 25 MAY 47US29278GAC24Details
ENELIM 225 12 JUL 31US29278GAP37Details
ENELIM 1875 12 JUL 28US29278GAN88Details
Morgan Stanley 3591US61744YAK47Details
ENELIM 1375 12 JUL 26US29278GAM06Details
ENELIM 55 15 JUN 52US29278GAY44Details
ENELIM 68 14 OCT 25US29278GAZ19Details
ENELIM 4625 15 JUN 27US29278GAW87Details
ENELIM 5 15 JUN 32US29278GAX60Details
ENELIM 425 15 JUN 25US29278GAV05Details
Morgan Stanley 3971US61744YAL20Details
ENELIM 775 14 OCT 52US29278GBB32Details
ENELIM 75 14 OCT 32US29278GBA58Details

Understaning Eneos Holdings Use of Financial Leverage

Understanding the structure of Eneos Holdings' debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Eneos Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
ENEOS Holdings, Inc., through its subsidiaries, engages in the energy, oil and natural gas exploration and production , and metals businesses Japan, China, and internationally. ENEOS Holdings, Inc. was founded in 1888 and is headquartered in Tokyo, Japan. Jx Holdings is traded on OTC Exchange in the United States.
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Additional Tools for Eneos Pink Sheet Analysis

When running Eneos Holdings' price analysis, check to measure Eneos Holdings' 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 Eneos Holdings is operating at the current time. Most of Eneos Holdings' value examination focuses on studying past and present price action to predict the probability of Eneos Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eneos Holdings' price. Additionally, you may evaluate how the addition of Eneos Holdings 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.