CFSB Bancorp GIBACN Bond
| CFSB Stock | USD 6.72 0.01 0.15% |
At present, CFSB Bancorp's Short and Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 10.9 M, whereas Short and Long Term Debt Total is forecasted to decline to about 5.6 M. With a high degree of financial leverage come high-interest payments, which usually reduce CFSB Bancorp's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0121 | Current Value 0.008952 | Quarterly Volatility 0.00223861 |
CFSB |
Given the importance of CFSB Bancorp's capital structure, the first step in the capital decision process is for the management of CFSB Bancorp 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 CFSB Bancorp to issue bonds at a reasonable cost.
| Popular Name | CFSB Bancorp GIBACN 23 14 SEP 31 |
| Specialization | Banks - Regional |
| Equity ISIN Code | US12530C1071 |
| Bond Issue ISIN Code | US12532HAF10 |
CFSB Bancorp Outstanding Bond Obligations
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Understaning CFSB Bancorp Use of Financial Leverage
CFSB Bancorp's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures CFSB Bancorp's total debt position, including all outstanding debt obligations, and compares it with CFSB Bancorp's equity. Financial leverage can amplify the potential profits to CFSB Bancorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if CFSB Bancorp is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 11.2 M | 5.6 M | |
| Net Debt | -15.7 M | -16.5 M | |
| Long Term Debt | 3 M | 2.6 M | |
| Short and Long Term Debt | 10.3 M | 10.9 M | |
| Short Term Debt | 10.3 M | 10.9 M | |
| Net Debt To EBITDA | (1.01) | (1.06) | |
| Debt To Equity | 0.06 | 0.05 | |
| Interest Debt Per Share | 0.79 | 0.53 | |
| Debt To Assets | 0.01 | 0.01 | |
| Long Term Debt To Capitalization | 0.06 | 0.05 | |
| Total Debt To Capitalization | 0.05 | 0.05 | |
| Debt Equity Ratio | 0.06 | 0.05 | |
| Debt Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | 0.64 | 1.23 |
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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.When determining whether CFSB Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CFSB Bancorp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cfsb Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cfsb Bancorp Stock:Check out the analysis of CFSB Bancorp Fundamentals Over Time. For information on how to trade CFSB Stock refer to our How to Trade CFSB Stock guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Regional Banks 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 CFSB Bancorp. If investors know CFSB 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 CFSB Bancorp 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 0.517 | Earnings Share (0.01) | Revenue Per Share 1.183 | Quarterly Revenue Growth (0.12) | Return On Assets (0.0003) |
The market value of CFSB Bancorp is measured differently than its book value, which is the value of CFSB that is recorded on the company's balance sheet. Investors also form their own opinion of CFSB Bancorp's value that differs from its market value or its book value, called intrinsic value, which is CFSB Bancorp'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 CFSB Bancorp's market value can be influenced by many factors that don't directly affect CFSB Bancorp'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 CFSB Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if CFSB Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CFSB Bancorp'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.