Shengfeng Development Current Debt
| SFWL Stock | 1.22 0.04 3.39% |
At this time, Shengfeng Development's Interest Debt Per Share is quite stable compared to the past year. Debt To Assets is expected to rise to 0.23 this year, although the value of Short and Long Term Debt will most likely fall to about 38.5 M. . Shengfeng Development's financial risk is the risk to Shengfeng Development stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.16777511 | Current Value 0.23 | Quarterly Volatility 0.04554104 |
Given that Shengfeng Development'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 Shengfeng Development 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 Shengfeng Development to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Shengfeng Development is said to be less leveraged. If creditors hold a majority of Shengfeng Development's assets, the Company is said to be highly leveraged.
Non Current Liabilities Total is expected to rise to about 21 M this year, although the value of Total Current Liabilities will most likely fall to about 134 M. Shengfeng |
Shengfeng Development Financial Rating
Shengfeng Development Limited financial ratings play a critical role in determining how much Shengfeng Development 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 Shengfeng Development's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (2.35) | Unlikely Manipulator | View |
Shengfeng Development Total Assets Over Time
Shengfeng Development Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Shengfeng Development 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.Shengfeng Development Debt Ratio | 23.0 |
Shengfeng Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Shengfeng Development Use of Financial Leverage
Leverage ratios show Shengfeng Development'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 Shengfeng Development'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 | 61.8 M | 76.7 M | |
| Net Debt | 35.1 M | 37.8 M | |
| Short Term Debt | 50.9 M | 58.5 M | |
| Short and Long Term Debt | 44.6 M | 38.5 M | |
| Net Debt To EBITDA | 1.19 | 2.26 | |
| Debt To Equity | 0.41 | 0.62 | |
| Interest Debt Per Share | 0.57 | 0.68 | |
| Debt To Assets | 0.17 | 0.23 | |
| Long Term Debt To Capitalization | 0.16 | 0.14 | |
| Total Debt To Capitalization | 0.29 | 0.40 | |
| Debt Equity Ratio | 0.41 | 0.62 | |
| Debt Ratio | 0.17 | 0.23 | |
| Cash Flow To Debt Ratio | 0.27 | 0.29 |
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Is Air Freight & Logistics 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 Shengfeng Development. If investors know Shengfeng 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 Shengfeng Development 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 (0.23) | Earnings Share 0.11 | Revenue Per Share 5.411 | Quarterly Revenue Growth 0.228 | Return On Assets 0.0304 |
The market value of Shengfeng Development is measured differently than its book value, which is the value of Shengfeng that is recorded on the company's balance sheet. Investors also form their own opinion of Shengfeng Development's value that differs from its market value or its book value, called intrinsic value, which is Shengfeng Development'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 Shengfeng Development's market value can be influenced by many factors that don't directly affect Shengfeng Development'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 Shengfeng Development's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shengfeng Development is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shengfeng Development'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.