Key Capital Debt
| KCPC Stock | USD 0.0001 0.00 0.00% |
At present, Key Capital's Short Term Debt is projected to increase significantly based on the last few years of reporting. With a high degree of financial leverage come high-interest payments, which usually reduce Key Capital's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0 | Current Value 0.0 | Quarterly Volatility 0.0 |
Given that Key Capital'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 Key Capital 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 Key Capital to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Key Capital is said to be less leveraged. If creditors hold a majority of Key Capital's assets, the Company is said to be highly leveraged.
The current year's Change To Liabilities is expected to grow to about 557.8 K, whereas Total Current Liabilities is forecasted to decline to about 1.9 M. Check out the analysis of Key Capital Financial Statements. Key Capital Bond Ratings
Key Capital Corp financial ratings play a critical role in determining how much Key Capital 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 Key Capital's borrowing costs.| Piotroski F Score | 2 | Frail | View |
| Beneish M Score | (1,463) | Unlikely Manipulator | View |
Key Capital Corp Debt to Cash Allocation
As Key Capital Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Key Capital's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Key Capital Corp currently holds 160.52 K in liabilities. Note, when we think about Key Capital's use of debt, we should always consider it together with its cash and equity.Key Capital Total Current Liabilities Over Time
Key Capital Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Key Capital's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Key Capital, which in turn will lower the firm's financial flexibility.Key Capital Corporate Bonds Issued
Most Key bonds can be classified according to their maturity, which is the date when Key Capital Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understaning Key Capital Use of Financial Leverage
Key Capital's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Key Capital's total debt position, including all outstanding debt obligations, and compares it with Key Capital's equity. Financial leverage can amplify the potential profits to Key Capital's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Key Capital is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt | 184.6 K | 193.8 K | |
| Short Term Debt | 184.6 K | 193.8 K | |
| Net Debt | (2.99) | (3.14) |
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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 Key Capital Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Key Capital'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 Key Capital Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Key Capital Corp Stock:Check out the analysis of Key Capital Financial Statements. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Will Asset Management sector continue expanding? Could Key diversify its offerings? Factors like these will boost the valuation of Key Capital. Expected growth trajectory for Key significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Key Capital data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
The market value of Key Capital Corp is measured differently than its book value, which is the value of Key that is recorded on the company's balance sheet. Investors also form their own opinion of Key Capital's value that differs from its market value or its book value, called intrinsic value, which is Key Capital's true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because Key Capital's market value can be influenced by many factors that don't directly affect Key Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Understanding that Key Capital's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Key Capital represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Meanwhile, Key Capital's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.
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.