Veritex Holdings 92343VGN8 Bond

VBTX Stock  USD 29.75  0.20  0.67%   
Veritex Holdings has over 329.78 Million in debt which may indicate that it relies heavily on debt financing. At this time, Veritex Holdings' Short and Long Term Debt Total is fairly stable compared to the past year. Long Term Debt Total is likely to rise to about 275 M in 2024, despite the fact that Net Debt is likely to grow to (284.3 M). With a high degree of financial leverage come high-interest payments, which usually reduce Veritex Holdings' Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

Veritex 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. Veritex 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 Veritex Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Veritex Holdings' stakeholders.
For most companies, including Veritex Holdings, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Veritex Holdings, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Veritex Holdings' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
1.0148
Book Value
29.534
Operating Margin
0.3802
Profit Margin
0.2314
Return On Assets
0.0068
Liabilities And Stockholders Equity is likely to rise to about 13 B in 2024. Total Current Liabilities is likely to rise to about 7.4 B in 2024
  
Check out the analysis of Veritex Holdings Fundamentals Over Time.
For more information on how to buy Veritex Stock please use our How to Invest in Veritex Holdings guide.
View Bond Profile
Given the importance of Veritex Holdings' capital structure, the first step in the capital decision process is for the management of Veritex 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 Veritex Holdings to issue bonds at a reasonable cost.
Popular NameVeritex Holdings VZ 2355 15 MAR 32
SpecializationBanks - Regional
Equity ISIN CodeUS9234511080
Bond Issue ISIN CodeUS92343VGN82
S&P Rating
Others
Maturity DateOthers
Issuance DateOthers
View All Veritex Holdings Outstanding Bonds

Veritex Holdings Outstanding Bond Obligations

Dana 575 percentUS235822AB96Details
Volcan Compania MineraUSP98047AC08Details
Boeing Co 2196US097023DG73Details
US92346MCG42US92346MCG42Details
VeriSign 475 percentUS92343EAL65Details
VRSN 27 15 JUN 31US92343EAM49Details
VERIZON MUNICATIONS INCUS92343VBG86Details
VeriSign 525 percentUS92343EAH53Details
VERIZON MUNICATIONS INCUS92343VBE39Details
US92346MBT71US92346MBT71Details
US92346MBP59US92346MBP59Details
VERIZON MUNICATIONS INCUS92346MBM29Details
VERIZON MUNICATIONS INCUS92346MBK62Details
US92346MBH34US92346MBH34Details
VERIZON MUNICATIONS INCUS92346MBF77Details
MPLX LP 4875US55336VAG59Details
VERIZON MUNICATIONS INCUS92346MBD20Details
VERIZON MUNICATIONS INCUS92346MBB63Details
VERIZON MUNICATIONS INCUS92343VAK08Details
VERIZON MUNICATIONS INCUS92343VAF13Details
VERIZON MUNICATIONS INCUS92346MAZ41Details
VERIZON MUNICATIONS INCUS92346MAY75Details
US92346MAW10US92346MAW10Details
VERIZON MUNICATIONS INCUS92346MAU53Details
VERIZON MUNICATIONS INCUS92346MAS08Details
VERIZON MUNICATIONS INCUS92346MAQ42Details
VERIZON MUNICATIONS INCUS92346MAL54Details
US92346MAG69US92346MAG69Details
MPLX LP 4125US55336VAK61Details
VERIZON MUNICATIONS INCUS92346MAC55Details
MPLX LP 52US55336VAL45Details
VERITAS INC VERITASUS92346LAE39Details
VERIZON MUNICATIONS INCUS92343VDU52Details
VERIZON MUNICATIONS INCUS92343VDV36Details
VERIZON MUNICATIONS INCUS92343VDS07Details
VERIZON GLOBAL FDGUS92344GAM87Details
VERIZON MUNICATIONS INCUS92343VDR24Details
VERIZON MUNICATIONS INCUS92343VDD38Details
VERIZON MUNICATIONS INCUS92343VDC54Details
VERIZON MUNICATIONS INCUS92343VCZ58Details
VERIZON MUNICATIONS INCUS92343VCV45Details
VERIZON MUNICATIONS INCUS92343VCX01Details
VERIZON MUNICATIONS INCUS92343VCQ59Details
US92346MDC29US92346MDC29Details
US92346MDA62US92346MDA62Details
VERIZON MUNICATIONS INCUS92343VCM46Details
VERIZON MUNICATIONS INCUS92343VCK89Details
VERIZON NEW YORKUS92344XAB55Details
US92346MCY57US92346MCY57Details
VERIZON MUNICATIONS INCUS92346MCU36Details
US92346MCQ24US92346MCQ24Details
VERIZON MUNICATIONS INCUS92343VBZ67Details
US92346MCL37US92346MCL37Details
US92346MCJ80US92346MCJ80Details
VERIZON MUNICATIONS INCUS92343VBT08Details
VERIZON MUNICATIONS INCUS92343VBS25Details
VERIZON MUNICATIONS INCUS92343VFW90Details
VERIZON MUNICATIONS INCUS92343VFX73Details
VERIZON MUNICATIONS INCUS92343VFU35Details
VERIZON MUNICATIONS INCUS92343VFV18Details
VERIZON MUNICATIONS INCUS92343VFS88Details
VERIZON MUNICATIONS INCUS92343VFT61Details
VERIZON MUNICATIONS INCUS92343VFR06Details
VERIZON MUNICATIONS INCUS92343VFL36Details
VERIZON MUNICATIONS INCUS92343VFF67Details
VERIZON MUNICATIONS INCUS92343VFD10Details
VERIZON MUNICATIONS INCUS92343VFE92Details
US92346MFQ96US92346MFQ96Details
VERIZON MUNICATIONS INCUS92343VEU44Details
VERIZON MUNICATIONS INCUS92343VER15Details
VERIZON MUNICATIONS INCUS92343VES97Details
Verizon Communications FRNUS92343VEP58Details
VERIZON MUNICATIONS INCUS92343VEN01Details
US92346MEW73US92346MEW73Details
VERIZON MUNICATIONS INCUS92343VEA89Details
VERIZON GLOBAL FDGUS92344GAX43Details
VERIZON MUNICATIONS INCUS92343VDY74Details
Morgan Stanley 3591US61744YAK47Details
Morgan Stanley 3971US61744YAL20Details
MGM Resorts InternationalUS552953CD18Details
VERIZON MD INCUS92344WAB72Details
VZ 2355 15 MAR 32US92343VGN82Details
VZ 285 03 SEP 41US92343VGL27Details
VERIZON MUNICATIONS INCUS92343VGK44Details
VERIZON MUNICATIONS INCUS92343VGJ70Details
VERIZON MUNICATIONS INCUS92343VGG32Details
VERIZON MUNICATIONS INCUS92343VGH15Details
VZ 523269 20 MAR 26US92343VGE83Details
VERIZON MUNICATIONS INCUS92343VGC28Details
VERIZON MUNICATIONS INCUS92343VGB45Details
VERISK ANALYTICS INCUS92345YAE68Details
VERISK ANALYTICS INCUS92345YAD85Details

Understaning Veritex Holdings Use of Financial Leverage

Understanding the structure of Veritex Holdings' debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Veritex 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.
Last ReportedProjected for Next Year
Short and Long Term Debt Total329.8 M451.3 M
Net Debt-299.3 M-284.3 M
Long Term Debt329.8 M297.1 M
Long Term Debt Total261.9 M275 M
Short and Long Term Debt86.2 M45.7 M
Short Term Debt105.3 M163 M
Net Debt To EBITDA 4.24  4.45 
Debt To Equity 0.22  0.34 
Interest Debt Per Share 12.12  7.49 
Debt To Assets 0.03  0.05 
Long Term Debt To Capitalization 0.18  0.22 
Total Debt To Capitalization 0.18  0.22 
Debt Equity Ratio 0.22  0.34 
Debt Ratio 0.03  0.05 
Cash Flow To Debt Ratio 0.44  0.26 
Please read more on our technical analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Additional Tools for Veritex Stock Analysis

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