Jefferies Financial 47233JBW7 Bond
JEF Stock | USD 78.59 1.06 1.37% |
Jefferies Financial holds a debt-to-equity ratio of 2.33. At this time, Jefferies Financial's Long Term Debt is most likely to increase significantly in the upcoming years. The Jefferies Financial's current Short and Long Term Debt is estimated to increase to about 1.6 B, while Long Term Debt Total is projected to decrease to roughly 8.9 B. . Jefferies Financial's financial risk is the risk to Jefferies Financial stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Jefferies Financial'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. Jefferies Financial'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 Jefferies Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Jefferies Financial's stakeholders.
For most companies, including Jefferies Financial, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Jefferies Financial Group, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Jefferies Financial'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 1.586 | Book Value 48.886 | Operating Margin 0.1501 | Profit Margin 0.0933 | Return On Assets 0.0095 |
Jefferies |
Given the importance of Jefferies Financial's capital structure, the first step in the capital decision process is for the management of Jefferies Financial 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 Jefferies Financial Group to issue bonds at a reasonable cost.
Popular Name | Jefferies Financial US47233JBW71 |
Specialization | Financial Services |
Equity ISIN Code | US47233W1099 |
Bond Issue ISIN Code | US47233JBW71 |
Jefferies Financial Outstanding Bond Obligations
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Understaning Jefferies Financial Use of Financial Leverage
Jefferies Financial's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Jefferies Financial's total debt position, including all outstanding debt obligations, and compares it with Jefferies Financial's equity. Financial leverage can amplify the potential profits to Jefferies Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Jefferies Financial is unable to cover its debt costs.
Last Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 18.5 B | 19.4 B | |
Net Debt | 8.7 B | 9.1 B | |
Short Term Debt | 1.1 B | 1.1 B | |
Long Term Debt | 16.7 B | 17.6 B | |
Long Term Debt Total | 12.6 B | 8.9 B | |
Short and Long Term Debt | 1.1 B | 1.6 B | |
Net Debt To EBITDA | 8.62 | 9.05 | |
Debt To Equity | 1.94 | 2.03 | |
Interest Debt Per Share | 56.49 | 59.31 | |
Debt To Assets | 0.42 | 0.44 | |
Long Term Debt To Capitalization | 0.51 | 0.30 | |
Total Debt To Capitalization | 0.66 | 0.69 | |
Debt Equity Ratio | 1.94 | 2.03 | |
Debt Ratio | 0.42 | 0.44 | |
Cash Flow To Debt Ratio | 0.05 | 0.06 |
Currently Active Assets on Macroaxis
When determining whether Jefferies Financial is a strong investment it is important to analyze Jefferies Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Jefferies Financial's future performance. For an informed investment choice regarding Jefferies Stock, refer to the following important reports:Check out the analysis of Jefferies Financial Fundamentals Over Time. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Multi-Sector Holdings 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 Jefferies Financial. If investors know Jefferies 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 Jefferies Financial 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 2.403 | Dividend Share 1.25 | Earnings Share 2.34 | Revenue Per Share 28.582 | Quarterly Revenue Growth 0.424 |
The market value of Jefferies Financial is measured differently than its book value, which is the value of Jefferies that is recorded on the company's balance sheet. Investors also form their own opinion of Jefferies Financial's value that differs from its market value or its book value, called intrinsic value, which is Jefferies Financial'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 Jefferies Financial's market value can be influenced by many factors that don't directly affect Jefferies Financial'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 Jefferies Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Jefferies Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jefferies Financial'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.