Goldman Sachs Group 38141GYQ1 Bond
| GS Stock | USD 427.57 7.52 1.79% |
Goldman Sachs Group has over 643.62 Billion in debt which may indicate that it relies heavily on debt financing. At this time, Goldman Sachs' Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 422.1 B in 2024, whereas Long Term Debt Total is likely to drop slightly above 243.9 B in 2024. Goldman Sachs' financial risk is the risk to Goldman Sachs stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Goldman Sachs' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Goldman Sachs' 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 Goldman Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Goldman Sachs' stakeholders.
For most companies, including Goldman Sachs, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Goldman Sachs Group the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Price Book 1.1958 | Book Value 318.227 | Operating Margin 0.3786 | Profit Margin 0.2015 | Return On Assets 0.0058 |
Goldman |
Given the importance of Goldman Sachs' capital structure, the first step in the capital decision process is for the management of Goldman Sachs 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 Goldman Sachs Group to issue bonds at a reasonable cost.
| Popular Name | Goldman Sachs US38141GYQ18 |
| Specialization | Financial Services |
| Equity ISIN Code | US38141G1040 |
| Bond Issue ISIN Code | US38141GYQ18 |
| S&P Rating | Others |
| Maturity Date | 21st of October 2024 |
| Issuance Date | 21st of October 2021 |
| Coupon | 5.808 % |
Goldman Sachs Group Outstanding Bond Obligations
Understaning Goldman Sachs Use of Financial Leverage
Goldman Sachs financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Goldman Sachs's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Goldman Sachs assets, the company is considered highly leveraged. Understanding the composition and structure of overall Goldman Sachs debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Goldman Sachs' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Goldman Sachs' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 643.6 B | 675.8 B | |
| Net Debt | 402 B | 422.1 B | |
| Short Term Debt | 441.6 B | 463.7 B | |
| Long Term Debt | 247.9 B | 190.6 B | |
| Long Term Debt Total | 284.1 B | 243.9 B | |
| Short and Long Term Debt | 83.1 B | 50.8 B | |
| Net Debt To EBITDA | (231.86) | (220.26) | |
| Debt To Equity | 5.49 | 4.36 | |
| Interest Debt Per Share | 2.1 K | 2.2 K | |
| Debt To Assets | 0.39 | 0.21 | |
| Long Term Debt To Capitalization | 0.63 | 0.78 | |
| Total Debt To Capitalization | 0.85 | 0.87 | |
| Debt Equity Ratio | 5.49 | 4.36 | |
| Debt Ratio | 0.39 | 0.21 | |
| Cash Flow To Debt Ratio | 0.02 | 0.02 |
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When running Goldman Sachs' price analysis, check to measure Goldman Sachs' 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 Goldman Sachs is operating at the current time. Most of Goldman Sachs' value examination focuses on studying past and present price action to predict the probability of Goldman Sachs' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Goldman Sachs' price. Additionally, you may evaluate how the addition of Goldman Sachs to your portfolios can decrease your overall portfolio volatility.
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Is Goldman Sachs' industry 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 Goldman Sachs. If investors know Goldman 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 Goldman Sachs 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 0.317 | Dividend Share 10.75 | Earnings Share 25.65 | Revenue Per Share 138.222 | Quarterly Revenue Growth 0.121 |
The market value of Goldman Sachs Group is measured differently than its book value, which is the value of Goldman that is recorded on the company's balance sheet. Investors also form their own opinion of Goldman Sachs' value that differs from its market value or its book value, called intrinsic value, which is Goldman Sachs' 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 Goldman Sachs' market value can be influenced by many factors that don't directly affect Goldman Sachs' 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 Goldman Sachs' value and its price as these two are different measures arrived at by different means. Investors typically determine if Goldman Sachs is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Goldman Sachs' 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.