Prudential PLC ADR PRUDENTIAL Bond

PUK Stock  USD 17.21  0.16  0.94%   
Prudential PLC ADR holds a debt-to-equity ratio of 0.363. At this time, Prudential PLC's Debt Ratio is quite stable compared to the past year. Cash Flow To Debt Ratio is expected to rise to 0.19 this year, although the value of Short Term Debt will most likely fall to about 664 M. . Prudential PLC's financial risk is the risk to Prudential PLC stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Prudential PLC's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Prudential PLC's 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 Prudential Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Prudential PLC's stakeholders.
For most companies, including Prudential PLC, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Prudential PLC ADR, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Prudential PLC's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
1.3833
Book Value
5.902
Operating Margin
0.2695
Profit Margin
0.0801
Return On Assets
0.0123
At this time, Prudential PLC's Liabilities And Stockholders Equity is quite stable compared to the past year. Non Current Liabilities Total is expected to rise to about 158 B this year, although the value of Total Current Liabilities will most likely fall to about 5.5 B.
  
Check out the analysis of Prudential PLC Fundamentals Over Time.
View Bond Profile
Given the importance of Prudential PLC's capital structure, the first step in the capital decision process is for the management of Prudential PLC 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 Prudential PLC ADR to issue bonds at a reasonable cost.
Popular NamePrudential PLC PRUDENTIAL FINL INC
SpecializationInsurance - Life
Equity ISIN CodeUS74435K2042
Bond Issue ISIN CodeUS74432AYV69
S&P Rating
Others
Maturity Date15th of September 2044
Issuance Date25th of September 2014
Coupon4.6 %
View All Prudential PLC Outstanding Bonds

Prudential PLC ADR Outstanding Bond Obligations

US744320BH48US744320BH48Details
US744320BF81US744320BF81Details
PRU 6 01 SEP 52US744320BK76Details
PRU 5125 01 MAR 52US744320BJ04Details
PRUDENTIAL FINL INCUS744320BA94Details
Dana 575 percentUS235822AB96Details
US744320AV41US744320AV41Details
PRUDENTIAL FINL INCUS744320AY89Details
US744320AW24US744320AW24Details
PRUDENTIAL FINL INCUS74432QAC96Details
Boeing Co 2196US097023DG73Details
PRUDENTIAL FINL INCUS74432QBD60Details
PRUDENTIAL FINL INCUS74432QAQ82Details
PRUDENTIAL FINL INCUS74432QAK13Details
PRUDENTIAL FINL INCUS74432QAH83Details
US74432QCH65US74432QCH65Details
PRUDENTIAL FINANCIAL INCUS74432QCF00Details
US74432QCG82US74432QCG82Details
US74432QCJ22US74432QCJ22Details
PRUDENTIAL FINL INCUS74432QCD51Details
PRUDENTIAL FINL INCUS74432QCC78Details
PRUDENTIAL FINANCIAL INCUS74432QCE35Details
PRUDENTIAL FINL INCUS74432QCA13Details
PRUDENTIAL FINL INCUS74432QBY08Details
PRUDENTIAL FINL INCUS74432QBN43Details
PRUDENTIAL FINL INCUS74432QBQ73Details
PRUDENTIAL FINL INCUS74432QBS30Details
PRUDENTIAL FINL INCUS74432AH860Details
US74432AH605US74432AH605Details
US74432AZE36US74432AZE36Details
US74432AZD52US74432AZD52Details
US74432AZB96US74432AZB96Details
PRUDENTIAL FINL INCUS74432AZC79Details
PRUDENTIAL FINL INCUS74432AYX26Details
PRUDENTIAL FINL INCUS74432AYV69Details
PRUDENTIAL FINL INCUS74432AYY09Details
PRUDENTIAL FINL INCUS74432AYZ73Details
US74432AH944US74432AH944Details
PRUDENTIAL FINL INCUS74432AJ270Details
MPLX LP 4875US55336VAG59Details
MPLX LP 4125US55336VAK61Details
MPLX LP 52US55336VAL45Details
Morgan Stanley 3591US61744YAK47Details
Morgan Stanley 3971US61744YAL20Details

Understaning Prudential PLC Use of Financial Leverage

Leverage ratios show Prudential PLC'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 Prudential PLC'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 ReportedProjected for Next Year
Short and Long Term Debt Total4.9 B7.3 B
Net Debt3.3 B2.1 B
Long Term Debt3.9 B3.7 B
Short Term Debt699 M664 M
Short and Long Term Debt699 M1.1 B
Long Term Debt Total4.1 B8.2 B
Net Debt To EBITDA 0.35  0.34 
Debt To Equity 0.26  0.25 
Interest Debt Per Share 2.56  4.07 
Debt To Assets 0.03  0.04 
Long Term Debt To Capitalization 0.18  0.17 
Total Debt To Capitalization 0.21  0.20 
Debt Equity Ratio 0.26  0.25 
Debt Ratio 0.03  0.04 
Cash Flow To Debt Ratio 0.18  0.19 
Please read more on our technical analysis page.

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 Architect
When determining whether Prudential PLC ADR is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Prudential Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Prudential Plc Adr Stock. Highlighted below are key reports to facilitate an investment decision about Prudential Plc Adr Stock:
Check out the analysis of Prudential PLC Fundamentals Over Time.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Life & Health Insurance 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 Prudential PLC. If investors know Prudential 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 Prudential PLC 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
(0.87)
Dividend Share
0.211
Earnings Share
0.64
Revenue Per Share
1.9965
Quarterly Revenue Growth
(0.02)
The market value of Prudential PLC ADR is measured differently than its book value, which is the value of Prudential that is recorded on the company's balance sheet. Investors also form their own opinion of Prudential PLC's value that differs from its market value or its book value, called intrinsic value, which is Prudential PLC'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 Prudential PLC's market value can be influenced by many factors that don't directly affect Prudential PLC'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 Prudential PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prudential PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prudential PLC'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.
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.