NESTE OYJ UNSPADR NESNVX Bond
NEFA Stock | EUR 5.55 0.35 5.93% |
NESTE OYJ UNSPADR holds a debt-to-equity ratio of 0.301. . NESTE OYJ's financial risk is the risk to NESTE OYJ stockholders that is caused by an increase in debt.
NESTE |
Given the importance of NESTE OYJ's capital structure, the first step in the capital decision process is for the management of NESTE OYJ 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 NESTE OYJ UNSPADR to issue bonds at a reasonable cost.
Popular Name | NESTE OYJ NESNVX 2625 14 SEP 51 |
Equity ISIN Code | US64104Y1064 |
Bond Issue ISIN Code | US641062AZ70 |
S&P Rating | Others |
Maturity Date | Others |
Issuance Date | Others |
NESTE OYJ UNSPADR Outstanding Bond Obligations
NESNVX 2625 14 SEP 51 | US641062AZ70 | Details | |
NESNVX 25 14 SEP 41 | US641062AY06 | Details | |
NESNVX 4 12 SEP 25 | US641062BA11 | Details | |
NESNVX 125 15 SEP 30 | US641062AT11 | Details | |
NESNVX 625 15 JAN 26 | US641062AR54 | Details | |
NESNVX 1 15 SEP 27 | US641062AS38 | Details | |
NESNVX 115 14 JAN 27 | US641062AV66 | Details | |
Boeing Co 2196 | US097023DG73 | Details | |
NESNVX 1875 14 SEP 31 | US641062AX23 | Details | |
NESNVX 15 14 SEP 28 | US641062AW40 | Details | |
NESNVX 525 13 MAR 26 | US641062BK92 | Details | |
NESNVX 425 01 OCT 29 | US641062BC76 | Details | |
NESNVX 43 01 OCT 32 | US641062BD59 | Details | |
NESNVX 4125 01 OCT 27 | US641062BB93 | Details | |
NESNVX 5 14 MAR 28 | US641062BF08 | Details | |
NESNVX 47 15 JAN 53 | US641062BE33 | Details | |
NESNVX 485 14 MAR 33 | US641062BH63 | Details | |
NESNVX 495 14 MAR 30 | US641062BG80 | Details | |
Morgan Stanley 3591 | US61744YAK47 | Details | |
Morgan Stanley 3971 | US61744YAL20 | Details | |
NESNVX 39 24 SEP 38 | US641062AL84 | Details | |
NESNVX 4 24 SEP 48 | US641062AN41 | Details | |
NESNVX 35 24 SEP 25 | US641062AE42 | Details | |
NESNVX 3625 24 SEP 28 | US641062AF17 | Details |
Understaning NESTE OYJ Use of Financial Leverage
NESTE OYJ's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures NESTE OYJ's total debt position, including all outstanding debt obligations, and compares it with NESTE OYJ's equity. Financial leverage can amplify the potential profits to NESTE OYJ's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if NESTE OYJ is unable to cover its debt costs.
Neste Oyj provides renewable and oil products in Finland and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland. NESTE OYJ operates under Oil Gas Refining Marketing classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5137 people. Please read more on our technical analysis page.
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Other Information on Investing in NESTE Stock
NESTE OYJ financial ratios help investors to determine whether NESTE Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in NESTE with respect to the benefits of owning NESTE OYJ security.
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.