Puppy Business – Joli Jaunter http://jolijaunter.com/ Wed, 29 Jun 2022 10:28:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://jolijaunter.com/wp-content/uploads/2021/06/icon-1-150x150.png Puppy Business – Joli Jaunter http://jolijaunter.com/ 32 32 Is Corning (NYSE: GLW) a risky investment? https://jolijaunter.com/is-corning-nyse-glw-a-risky-investment/ Wed, 29 Jun 2022 10:15:33 +0000 https://jolijaunter.com/is-corning-nyse-glw-a-risky-investment/ Warren Buffett said: “Volatility is far from synonymous with risk. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. Like many other companies Corning Incorporated (NYSE: GLW) uses debt. But the more important question is: what risk […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. Like many other companies Corning Incorporated (NYSE: GLW) uses debt. But the more important question is: what risk does this debt create?

What risk does debt carry?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. The first thing to do when considering how much debt a business has is to look at its cash flow and debt together.

Check out our latest analysis for Corning

What is Corning’s debt?

You can click on the chart below for historical numbers, but it shows Corning had $6.96 billion in debt in March 2022, up from $7.80 billion a year prior. However, since he has a cash reserve of $2.02 billion, his net debt is less, at around $4.94 billion.

NYSE: GLW Debt to Equity History June 29, 2022

How healthy is Corning’s balance sheet?

Zooming in on the latest balance sheet data, we can see that Corning had liabilities of US$5.06 billion due within 12 months and liabilities of US$12.6 billion due beyond. In return, he had $2.02 billion in cash and $1.91 billion in receivables due within 12 months. Thus, its liabilities total $13.7 billion more than the combination of its cash and short-term receivables.

While that might sound like a lot, it’s not that bad since Corning has a huge market capitalization of US$28.1 billion, so it could probably bolster its balance sheet by raising capital if needed. But it is clear that it must be carefully examined whether he can manage his debt without dilution.

We use two main ratios to inform us about debt to earnings levels. The first is net debt divided by earnings before interest, taxes, depreciation and amortization (EBITDA), while the second is how often its earnings before interest and taxes (EBIT) covers its interest expense (or its interests, for short). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

With net debt of just 1.3 times EBITDA, Corning is arguably quite conservative. And this view is supported by strong interest coverage, with EBIT amounting to 8.3 times interest expense over the past year. On top of that, Corning has grown its EBIT by 33% in the last twelve months, and this growth will make it easier to manage its debt. The balance sheet is clearly the area to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether Corning can strengthen its balance sheet over time. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Finally, a business needs free cash flow to pay off its debts; book profits are not enough. We therefore always check how much of this EBIT is converted into free cash flow. Over the past three years, Corning has had free cash flow of 61% of its EBIT, which is about normal, given that free cash flow excludes interest and taxes. This free cash flow puts the company in a good position to repay its debt, should it arise.

Our point of view

The good news is that Corning’s demonstrated ability to increase EBIT delights us like a fluffy puppy does a toddler. But, on a darker note, we’re a bit concerned about his total passive level. When we consider the range of factors above, it appears that Corning is quite sensitive with its use of debt. While this carries some risk, it can also improve shareholder returns. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist outside of the balance sheet. We have identified 1 warning sign with Corning, and understanding them should be part of your investment process.

In the end, sometimes it’s easier to focus on companies that don’t even need to take on debt. Readers can access a list of growth stocks with no net debt 100% freeat present.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Humane Society of Imperial County cuts microchipping fees for pets https://jolijaunter.com/humane-society-of-imperial-county-cuts-microchipping-fees-for-pets/ Mon, 27 Jun 2022 18:16:44 +0000 https://jolijaunter.com/humane-society-of-imperial-county-cuts-microchipping-fees-for-pets/ Limited time offer! The Humane Society wants your pets to be safe, especially during the 4th of July IMPERIAL COUNTY, Calif. (KYMA, KECY) — To encourage more pet owners to microchip their pets, the Humane Society of Imperial County is reducing its microchipping fee from $25 to just $15 through July 9. Devon Apodaca, executive […]]]>

Limited time offer! The Humane Society wants your pets to be safe, especially during the 4th of July

IMPERIAL COUNTY, Calif. (KYMA, KECY) — To encourage more pet owners to microchip their pets, the Humane Society of Imperial County is reducing its microchipping fee from $25 to just $15 through July 9.

Devon Apodaca, executive director of the Humane Society of Imperial County, says more pets go missing on July 4 than any other day of the year, so having your pet microchipped will help you find your foursome friend fast. paws.

He says collars with name tags are very useful but can sometimes fall off. The microchip is a permanent form of pet identification.

The Humane Society of Imperial County is also still affected. On June 16, Apodaca released 28 dogs from the shelter and placed them with foster families in Los Angeles.

He says the saddest thing is not that a single kennel was opened after the departure of these 28 dogs.

“We had to convert a cat room into a room for puppies and small dogs and the majority of those dogs and puppies were in that room. Dogs and puppies in crates, stacked on crates, stacked on crates. This room still has a few small dogs and puppies in cages,” Apodaca says. “That’s how shelters are full all over Southern California, and that’s not how things should be.

No appointment is necessary to have your pet microchipped. Just stop by their office during business hours. Tuesday to Friday from 2 p.m. to 6 p.m. and Saturday from 11 a.m. to 3 p.m. The office is closed on Sunday and Monday.

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These 4 metrics indicate Kelsian Group (ASX:KLS) is using debt reasonably well https://jolijaunter.com/these-4-metrics-indicate-kelsian-group-asxkls-is-using-debt-reasonably-well/ Sat, 25 Jun 2022 22:53:16 +0000 https://jolijaunter.com/these-4-metrics-indicate-kelsian-group-asxkls-is-using-debt-reasonably-well/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. Like many other companies Kelsian Group Limited (ASX:KLS) uses debt. But the real question is whether this debt makes the business risky.

When is debt dangerous?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we think about a company’s use of debt, we first look at cash and debt together.

Discover our latest analysis for Kelsian Group

What is Kelsian Group’s debt?

You can click on the graph below for historical figures, but it shows that in December 2021 the Kelsian Group had A$384.2 million in debt, an increase from A$304.6 million , over one year. However, he has A$108.4 million in cash to offset this, resulting in a net debt of around A$275.7 million.

ASX: KLS Debt to Equity History June 25, 2022

A Look at Kelsian Group Liabilities

According to the latest published balance sheet, Kelsian Group had liabilities of A$321.2 million due within 12 months and liabilities of A$573.6 million due beyond 12 months. As compensation for these obligations, it had cash of A$108.4 million as well as receivables valued at A$112.2 million maturing within 12 months. Thus, its liabilities total A$674.1 million more than the combination of its cash and short-term receivables.

Kelsian Group has a market capitalization of A$1.29 billion, so it could very likely raise funds to improve its balance sheet, should the need arise. However, it is always worth taking a close look at your ability to repay debt.

We use two main ratios to inform us about debt to earnings levels. The first is net debt divided by earnings before interest, taxes, depreciation and amortization (EBITDA), while the second is how often its earnings before interest and taxes (EBIT) covers its interest expense (or its interests, for short). Thus, we consider debt to earnings with and without amortization and depreciation expense.

While Kelsian Group’s debt to EBITDA ratio (2.7) suggests that it uses some debt, its interest coverage is very low at 2.3, suggesting high leverage. It appears that the company is incurring significant depreciation and amortization costs, so perhaps its debt load is heavier than it appears at first glance, since EBITDA is undoubtedly a generous measure benefits. Shareholders should therefore probably be aware that interest charges seem to have had a real impact on the company lately. On the bright side, Kelsian Group increased its EBIT by 34% last year. Like a mother’s loving embrace of a newborn, this kind of growth builds resilience, putting the company in a stronger position to manage its debt. There is no doubt that we learn the most about debt from the balance sheet. But ultimately, the company’s future profitability will decide whether Kelsian Group can strengthen its balance sheet over time. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Finally, while the taxman may love accounting profits, lenders only accept cash. It is therefore worth checking how much of this EBIT is supported by free cash flow. Over the past three years, Kelsian Group has actually produced more free cash flow than EBIT. There’s nothing better than cash coming in to stay in your lenders’ good books.

Our point of view

The good news is that Kelsian Group’s demonstrated ability to convert EBIT into free cash flow delights us like a fluffy puppy does a toddler. But we have to admit that we find that its interest coverage has the opposite effect. Looking at all of the aforementioned factors together, it seems to us that the Kelsian Group can manage its debt quite comfortably. On the plus side, this leverage can increase shareholder returns, but the potential downside is more risk of loss, so it’s worth keeping an eye on the balance sheet. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks reside on the balance sheet, far from it. Know that Kelsian Group shows 3 warning signs in our investment analysis and 1 of them is significant…

In the end, sometimes it’s easier to focus on companies that don’t even need to take on debt. Readers can access a list of growth stocks with no net debt 100% freeat present.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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French Bulldogs are popular and have become targets of armed robbery https://jolijaunter.com/french-bulldogs-are-popular-and-have-become-targets-of-armed-robbery/ Thu, 23 Jun 2022 20:53:31 +0000 https://jolijaunter.com/french-bulldogs-are-popular-and-have-become-targets-of-armed-robbery/ ELK GROVE, Calif. — The French bulldog business is booming for Jaymar Del Rosario, a breeder whose puppies can sell for tens of thousands of dollars. When he leaves home to meet a buyer, his checklist includes vet papers, a bag of puppy food and his Glock 26. “If I don’t know the area, if […]]]>

ELK GROVE, Calif. — The French bulldog business is booming for Jaymar Del Rosario, a breeder whose puppies can sell for tens of thousands of dollars. When he leaves home to meet a buyer, his checklist includes vet papers, a bag of puppy food and his Glock 26.

“If I don’t know the area, if I don’t know the people, I always carry my sidearm,” Del Rosario said one recent afternoon as he showed Cashew, a 6-month-old French bulldog of a new “mellow” variety that can fetch $30,000 or more.

With their piercing ears, pleaser gaze and short-legged crocodile waddle, French Bulldogs have become the “it” dog for influencers, pop stars and professional athletes. Faithful companions in the work-from-home era, French Bulldogs always seem ready for an Instagram upload. They are now the second most popular dog breed in the United States after Labrador retrievers.

Some are also violently stolen from their owners. Over the past year, French Bulldog thefts have been reported in Miami, New York, Chicago, Houston, and most importantly, it seems, all over California. Often dogs are caught at gunpoint. In perhaps the most notorious theft, Lady Gaga’s two French bulldogs, Koji and Gustav, were snatched from the hands of her dog walker, who was punched, choked and shot in the attack of the year. last on a Los Angeles sidewalk.

The price of owning a Frenchie has for years been a strain on the household budget – puppies typically sell for $4,000-$6,000, but can buy multiple times if they’re one of the hot new varieties . Yet, owning a French Bulldog increasingly comes with non-monetary costs: the paranoia of a thief jumping over a garden fence. Hypervigilance walking his dog after learning of the latest kidnapping.

For unlucky owners, French Bulldogs are a confluence of two very American traits: the love of canine companions and the ubiquity of guns.

On a cold January evening in the Adams Point neighborhood of Oakland, Calif., Rita Warda was walking Dezzie, her 7-year-old Frenchie, not far from her home. An SUV pulled up and its passengers got out and rushed towards it.

“They had their gun and they said, ‘Give me your dog,'” Ms Warda said.

Three days later, a stranger called and said she had found the stray dog ​​at a local high school. Ms Warda is now taking self-defense classes and advises French bulldog owners to wear pepper spray or a whistle. Ms Warda says she doesn’t know why Dezzie’s captors abandoned him, but it could have been his advanced age: Frenchies have one of the shortest lifespans among dog breeds, and 7 years , it was already long in the tooth.

At the end of April, Cristina Rodriguez returned from her job at a cannabis dispensary in the Melrose district of Los Angeles. When she pulled up to her North Hollywood home, someone opened her car door and took Moolan away., her 2 year old black and white Frenchie.

Ms Rodriguez said she could not remember many details of the flight. “When you have a gun to your head, you kind of pass out,” she said.

But footage from surveillance cameras in her neighborhood and near the dispensary appears to indicate the thieves followed her for 45 minutes in traffic before pounced.

“They stole my baby,” Ms Rodriguez said. “It’s so sad to come home every day and not see her say hi to me.”

It’s unclear how widespread French bulldog thefts are nationwide, and some local law enforcement agencies have said they don’t count these particular crimes.

French Bull Dog Club of America board member Patricia Sosa said she was not aware of any annual tally. Social media groups created by Frenchie owners are often peppered with warnings. If you own a Frenchie, says a post on a Facebook group dedicated to lost or stolen French Bulldogs, “don’t let it get out of your sight.”

“Criminals make more money stealing from Frenchies than robbing convenience stores,” the post read.

Ms Sosa, who owns a breeding business north of New Orleans, said the lure of cashing in on the French bulldog craze has also spawned an industry of bogus sellers demanding deposits for dogs that don’t don’t exist.

“There are so many scams going on,” she said. “People think, ‘Hey, I’ll say I’ve got a Frenchie for sale and I’m making a quick five, six, seven grand. “”

Ms Sosa said herders were particularly vulnerable to theft. She does not give out her address to customers until she has thoroughly researched them. “I have security cameras everywhere,” she said.

French bulldogs, as their name suggests, are a French offshoot of the small bulldogs bred in England in the mid-1800s. An earlier version of the French Bulldog, as it is known in France, was favored as a rat catcher by the butchers in Paris before becoming the little dog of artists and the bourgeoisie, and the canine muses who appeared in the works of Edgar Degas and Henri de Toulouse-Lautrec.

Today, the American Kennel Club defines French Bulldogs as having a “square head with bat ears and a cockroach’s back.”

In the world of veterinary medicine, Frenchies are controversial because their beloved characteristics — their big heads and puffy puppy eyes, sunken noses and folds of skin — create what canine expert Dan O’Neill at the Royal Veterinary College of the University of London, calls them “ultra-prone” to medical problems.

Their heads are so big that mothers have trouble giving birth; most french bulldog puppies are delivered by caesarean section. Their short, muscular bodies also make it difficult for them to conceive naturally. Breeders usually artificially inseminate dogs.

Of most concern to researchers like O’Neill is the dog’s flat face, which can interfere with its breathing. French Bulldogs often make humming noises even when fully awake, they often tire easily, and they are sensitive to heat. They may also develop rashes in their skin folds. Due to their bulging eyes, some French Bulldogs are unable to blink.

Mr O’Neill leads a group of veterinary surgeons and other dog experts in the UK who urge potential buyers to ‘stop and think before buying a flat-faced dog’, a category which includes French Bulldogs, English Bulldogs, Pugs, Shih Tzus, Pekingese and Boxers.

“There is a flat-faced dog crisis,” Mr O’Neill said. French bulldogs, he concluded in a recent research paper, have four times the trouble of all other dogs.

These pleas and warnings haven’t stopped French Bulldogs from skyrocketing in popularity, propelled in large part by social media. As in the United States, the French Bulldog in Britain is neck and neck with the Labrador for the title of most popular breed in recent years.

Ms. Sosa blamed poor breeding for the poor results. “Well-behaved dogs are relatively healthy,” she said.

Mr. Del Rosario, the rancher from Elk Grove, a suburban town just south of Sacramento, says professional soccer and basketball players are among his most loyal customers. He sold puppies to players from the Kansas City Chiefs, Cincinnati Bengals, Tampa Bay Buccaneers, Houston Texans, New York Jets and Arizona Cardinals. Four years ago, the San Francisco 49ers purchased Zoe, a black brindle Frenchie who serves as the team’s emotional support dog. Two years later, the team added Rookie, a blue-gray French Bulldog puppy with hazel eyes, to their canine roster.

Mr. Del Rosario’s most expensive Frenchie was a “lilac” with a purplish-gray coat, light eyes that glowed red and a pinkish tinge to his muzzle. He sold for $100,000 to a South Korean buyer who wanted the dog for his rare genetics. The dog was one of several hundred puppies Mr. Del Rosario has sold over the past decade and a half.

He has kept seven Frenchies for his extended family, including his two daughters aged 9 and 10. The girls play with the Frenchies at home, but Mr. Del Rosario is strict not to let them walk the dogs alone.

“I don’t care if you go to the mailbox,” he said. “No, they just can’t take the dogs out on their own.

“With everything going on with these dogs, you never know.”

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Here’s why ConvaTec Group (LON:CTEC) can manage its debt responsibly https://jolijaunter.com/heres-why-convatec-group-lonctec-can-manage-its-debt-responsibly/ Wed, 22 Jun 2022 07:30:01 +0000 https://jolijaunter.com/heres-why-convatec-group-lonctec-can-manage-its-debt-responsibly/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We can see that ConvaTec Group Plc (LON:CTEC) uses debt in its business. But the real question is whether this debt makes the business risky.

When is debt dangerous?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. If things go really bad, lenders can take over the business. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, many companies use debt to finance their growth, without any negative consequences. The first thing to do when considering how much debt a business has is to look at its cash and debt together.

See our latest analysis for ConvaTec Group

How much debt does the ConvaTec group carry?

As you can see below, the ConvaTec Group had a debt of US$1.35 billion in December 2021, compared to US$1.46 billion the previous year. On the other hand, he has $463.4 million in cash, resulting in a net debt of around $884.1 million.

LSE: history of CTEC’s debt to equity June 22, 2022

How strong is the ConvaTec Group’s balance sheet?

According to the latest published balance sheet, the ConvaTec Group had liabilities of US$569.2 million due within 12 months and liabilities of US$1.41 billion due beyond 12 months. In return, he had $463.4 million in cash and $301.5 million in receivables due within 12 months. Thus, its liabilities total $1.21 billion more than the combination of its cash and short-term receivables.

While that might sound like a lot, it’s not that bad since ConvaTec Group has a market capitalization of US$5.36 billion, so it could probably bolster its balance sheet by raising capital if needed. But it is clear that it must be carefully examined whether he can manage his debt without dilution.

We measure a company’s leverage against its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT ) covers its interest charge (interest coverage). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

The ConvaTec Group has net debt worth 2.2x EBITDA, which isn’t too much, but its interest coverage looks a little low, with EBIT at just 6.5x operating expenses. ‘interests. While these numbers don’t alarm us, it’s worth noting that the company’s cost of debt has a real impact. We have seen the ConvaTec Group increase its EBIT by 2.8% over the last twelve months. While that barely brings us down, it’s a positive when it comes to debt. There is no doubt that we learn the most about debt from the balance sheet. But ultimately, the future profitability of the business will decide whether the ConvaTec Group can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. So the logical step is to look at what proportion of that EBIT is actual free cash flow. Fortunately for all shareholders, the ConvaTec Group has actually produced more free cash flow than EBIT over the past three years. There’s nothing better than cash coming in to stay in your lenders’ good books.

Our point of view

The good news is that the ConvaTec Group’s demonstrated ability to convert EBIT into free cash flow delights us like a fluffy puppy does a toddler. And we also thought its interest coverage was a positive. We also note that companies in the medical equipment industry like ConvaTec Group generally use debt without issue. When we consider the range of factors above, it seems that the ConvaTec Group is quite sensitive with its use of debt. While this carries some risk, it can also improve shareholder returns. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example – ConvaTec Group has 2 warning signs we think you should know.

If, after all that, you’re more interested in a fast-growing company with a strong balance sheet, check out our list of cash-neutral growth stocks right away.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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We think F5 (NASDAQ:FFIV) can manage its debt with ease https://jolijaunter.com/we-think-f5-nasdaqffiv-can-manage-its-debt-with-ease/ Mon, 20 Jun 2022 14:13:26 +0000 https://jolijaunter.com/we-think-f5-nasdaqffiv-can-manage-its-debt-with-ease/ Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. Like many other companies […]]]>

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. Like many other companies F5, Inc. (NASDAQ:FFIV) uses debt. But the more important question is: what risk does this debt create?

What risk does debt carry?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. The first thing to do when considering how much debt a business has is to look at its cash flow and debt together.

See our latest analysis for F5

What is F5’s debt?

You can click on the chart below for historical numbers, but it shows F5 had $359.4 million in debt in March 2022, up from $378.7 million a year prior. However, he has $887.1 million in cash to offset this, which translates to net cash of $527.7 million.

NasdaqGS: FFIV Debt to Equity History June 20, 2022

A Look at F5’s Responsibilities

The latest balance sheet data shows that F5 had liabilities of $1.77 billion due within one year, and liabilities of $906.8 million due thereafter. In return, it had $887.1 million in cash and $665.4 million in receivables due within 12 months. Thus, its liabilities outweigh the sum of its cash and (current) receivables of US$1.13 billion.

Given that publicly traded F5 shares are worth a total of US$9.11 billion, it seems unlikely that this level of liability is a major threat. However, we think it’s worth keeping an eye on the strength of its balance sheet, as it can change over time. Despite its notable liabilities, F5 has a net cash position, so it’s fair to say that it doesn’t have a lot of debt!

The good news is that F5 increased its EBIT by 6.7% year-on-year, which should ease any worries about debt repayment. The balance sheet is clearly the area to focus on when analyzing debt. But it is future earnings, more than anything, that will determine F5’s ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Finally, a company can only repay its debts with cash, not book profits. F5 may have net cash on the balance sheet, but it’s always interesting to look at how well the company converts its earnings before interest and tax (EBIT) into free cash flow, as this will influence both its need and its ability. to manage debt. Luckily for all shareholders, F5 has actually produced more free cash flow than EBIT over the past three years. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Summary

Although F5 has more liabilities than liquid assets, it also has a net cash position of $527.7 million. The icing on the cake was converting 133% of that EBIT into free cash flow, bringing in $564 million. So is F5 debt a risk? This does not seem to us to be the case. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example – F5 a 2 warning signs we think you should know.

If you are interested in investing in companies that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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These 4 metrics show that Autodesk (NASDAQ:ADSK) is using debt safely https://jolijaunter.com/these-4-metrics-show-that-autodesk-nasdaqadsk-is-using-debt-safely/ Sat, 18 Jun 2022 14:11:32 +0000 https://jolijaunter.com/these-4-metrics-show-that-autodesk-nasdaqadsk-is-using-debt-safely/ Warren Buffett said: “Volatility is far from synonymous with risk. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. Like many other companies Autodesk, Inc. (NASDAQ:ADSK) uses debt. But should shareholders worry about its use of debt? […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. Like many other companies Autodesk, Inc. (NASDAQ:ADSK) uses debt. But should shareholders worry about its use of debt?

What risk does debt carry?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, it exists at their mercy. In the worst case, a company can go bankrupt if it cannot pay its creditors. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. When we look at debt levels, we first consider cash and debt levels, together.

Check out our latest analysis for Autodesk

What is Autodesk’s debt?

The image below, which you can click on for more details, shows that in April 2022 Autodesk had $2.63 billion in debt, up from $1.64 billion in one year. However, he also had $1.59 billion in cash, so his net debt is $1.04 billion.

NasdaqGS: ADSK Debt to Equity History June 18, 2022

How healthy is Autodesk’s balance sheet?

The latest balance sheet data shows Autodesk had $3.80 billion in liabilities due within the year, and $3.78 billion in liabilities due thereafter. As compensation for these obligations, it had cash of US$1.59 billion as well as receivables valued at US$384.0 million due within 12 months. It therefore has liabilities totaling $5.61 billion more than its cash and short-term receivables, combined.

Of course, Autodesk has a titanic market capitalization of US$35.7 billion, so those liabilities are probably manageable. That said, it is clear that we must continue to monitor its record, lest it deteriorate.

We use two main ratios to inform us about debt to earnings levels. The first is net debt divided by earnings before interest, taxes, depreciation and amortization (EBITDA), while the second is how often its earnings before interest and taxes (EBIT) covers its interest expense (or its interests, for short). Thus, we consider debt to earnings with and without amortization and depreciation expense.

With net debt of just 1.2 times EBITDA, Autodesk is arguably quite conservative. And it has interest coverage of 9.7 times, which is more than enough. Another good sign, Autodesk was able to increase its EBIT by 25% in twelve months, thus facilitating the repayment of its debt. When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the company’s future profitability will decide whether Autodesk can strengthen its balance sheet over time. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Finally, a company can only repay its debts with cold hard cash, not with book profits. We therefore always check how much of this EBIT is converted into free cash flow. Over the past three years, Autodesk has actually produced more free cash flow than EBIT. There’s nothing better than incoming money to stay in the good books of your lenders.

Our point of view

The good news is that Autodesk’s demonstrated ability to convert EBIT into free cash flow delights us like a fluffy puppy does a toddler. And the good news does not stop there, since its EBIT growth rate also confirms this impression! Zooming out, Autodesk seems to be using debt quite sensibly; and that gets the green light from us. Although debt carries risks, when used wisely, it can also generate a higher return on equity. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example – Autodesk has 4 warning signs we think you should know.

If you are interested in investing in companies that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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🌱 Local restaurant praised for its quality + new feature of local businesses https://jolijaunter.com/%f0%9f%8c%b1-local-restaurant-praised-for-its-quality-new-feature-of-local-businesses/ Thu, 16 Jun 2022 20:58:24 +0000 https://jolijaunter.com/%f0%9f%8c%b1-local-restaurant-praised-for-its-quality-new-feature-of-local-businesses/ Good morning, good morning! I’m back with your new copy of the Buckhead Daily. Here are all the most important things to know about what’s happening in town. First, today’s weather forecast: A gusty thunderstorm in the afternoon. High: 97 Low: 78. Here are today’s top three stories at Buckhead: Regular health inspections are essential […]]]>

Good morning, good morning! I’m back with your new copy of the Buckhead Daily. Here are all the most important things to know about what’s happening in town.


First, today’s weather forecast:

A gusty thunderstorm in the afternoon. High: 97 Low: 78.


Here are today’s top three stories at Buckhead:

  1. Regular health inspections are essential to keep a community safe. Recently, the McDonough-based Burger King failed theirs with 66 points and scored a “U” meaning unsatisfactory. Not only were there issues with cleanliness and food preparation, there was actually an old health score of 97 displayed inside the restaurant rather than the score of 66. However, the local Buckhead restaurant, Café Agora, received a perfect score in its last inspection. It’s the second 100 they’ve earned, and because of their consistency, great food, and cleanliness, they received the Golden Spatula Award from CBS 46. Bravo! (CBS News 46)
  2. Need company this summer? Luckily there are plenty of pets to adopt in the Buckhead area! Whether you are looking for a playful pup or a calm but affectionate cat, the right pet is here! Check out these local listings today! (Buckhead Patch)
  3. With the warm weather, there are chores and projects that may need a little more care. Patch recently developed a new search feature, Local Businesses, for Buckhead residents! Community members will now be able to search a variety of categories to find a trustworthy and reliable company to do the job! Not only will the feature provide general business information, but stats and reviews will also appear! (Buckhead Patch)

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View Important Reg A Disclosures


Today in Buckhead:

  • Honoring Juneteenth: A Public Reception by Alpha Kappa Alpha Sorority at the Alpharetta Arts Center (7:00 p.m.)

From my notebook:

  • The New Atlanta Police Department Air Unit Tech was able to nab a wanted suspect on Middleton Rd. this week! With this new technology, combined with their Star Officers, the community can be kept much safer than ever! (Atlanta City Police Department via Facebook)
  • Need new workout buddies? Check Out Atlanta BeltLine’s Weekly Meetups! This week they tackled the beautiful Westside Trail! All runners of all experience levels are welcome and encouraged to join in the fun! (Facebook)
  • The non-profit organization, Kode With Klossy, and Spanx inventor, Sara Blakley, have collaborated again to host their annual coding class for young women at Atlanta Girls School! This event not only inspires and empowers young women, but teaches them valuable coding skills they may need one day! (Instagram)

More from our sponsors – please support the local news!

Events:


You are now aware and ready to go out this Friday. I’ll join you early tomorrow morning with your next update!

Carla Varner

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Searching the rescue site online leads to a perfect match for Susan. https://jolijaunter.com/searching-the-rescue-site-online-leads-to-a-perfect-match-for-susan/ Tue, 14 Jun 2022 20:22:35 +0000 https://jolijaunter.com/searching-the-rescue-site-online-leads-to-a-perfect-match-for-susan/ After sending my dog ​​Sunny over the Rainbow Bridge, I was heartbroken. He had been my companion for thirteen years and now he was gone. I knew I would eventually get another dog, but not right away. It could take until the end of the summer before I take that big step again. Someone should […]]]>

After sending my dog ​​Sunny over the Rainbow Bridge, I was heartbroken. He had been my companion for thirteen years and now he was gone. I knew I would eventually get another dog, but not right away. It could take until the end of the summer before I take that big step again.

Someone should have told me to stay away from dog rescue websites. Sunny and her brother had come to us from such a website. Giving another pooch in need a home was my plan, but not yet – yeah, not yet, famous last words.

For a few weeks I visited rescue towns in northeast Wisconsin. There were plenty of dogs available, but I wanted a puppy. It was my idea that introducing a puppy to my house cats would be the best alternative for everyone involved – it had already worked with Sunny and Booker.

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Is it time to put Encore Capital Group (NASDAQ:ECPG) on your watch list? https://jolijaunter.com/is-it-time-to-put-encore-capital-group-nasdaqecpg-on-your-watch-list/ Sun, 12 Jun 2022 13:53:30 +0000 https://jolijaunter.com/is-it-time-to-put-encore-capital-group-nasdaqecpg-on-your-watch-list/ Like a puppy chasing its tail, some new investors are often looking for “the next big thing,” even if that means buying “history stocks” with no revenue, let alone profit. Unfortunately, high-risk investments are often unlikely to ever return, and many investors pay a price to learn their lesson. Contrary to all that, I prefer […]]]>

Like a puppy chasing its tail, some new investors are often looking for “the next big thing,” even if that means buying “history stocks” with no revenue, let alone profit. Unfortunately, high-risk investments are often unlikely to ever return, and many investors pay a price to learn their lesson.

Contrary to all that, I prefer to spend time on companies like Encore Capital Group (NASDAQ:ECPG), which not only generates revenue, but also profits. Even if stocks are fully valued today, most capitalists would recognize its earnings as a demonstration of consistent value generation. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

Check out our latest analysis for Encore Capital Group

Encore Capital Group’s earnings per share are up.

As one of my mentors once told me, stock price follows earnings per share (EPS). This means EPS growth is seen as a real benefit by most successful long-term investors. For my part, I am blown away by the fact that Encore Capital Group has increased EPS by 54% per year over the past three years. This kind of growth never lasts long, but like a shooting star, it’s worth watching when it happens.

I like to take a look at earnings before interest and tax margins (EBIT), as well as revenue growth, to get another view of the quality of the company’s growth. Not all of Encore Capital Group’s income this year is income operations, so keep in mind that the revenue and margin figures I used may not be the best representation of the underlying business. While we note that Encore Capital Group’s EBIT margins have remained flat over the past year, revenues increased 4.2% to $1.7 billion. It is progress.

You can check the company’s revenue and profit growth trend in the table below. For more details, click on the image.

NasdaqGS: ECPG Earnings and Revenue History Jun 12, 2022

In investing, as in life, the future matters more than the past. So why not check this out free interactive visualization of Encore Capital Group provide profits?

Are Encore Capital Group insiders aligned with all shareholders?

I feel safer owning stock in a company if insiders also own stock, thereby aligning our interests more closely. So it’s good to see that Encore Capital Group insiders have a lot of capital invested in the stock. To be precise, they own $26 million worth of stock. It shows strong buy-in and can indicate belief in the business strategy. Even though that’s only about 1.9% of the company, it’s enough money to indicate alignment between company executives and common stockholders.

It means a lot to see insiders invested in the company, but I wonder if the compensation policies are shareholder-friendly. Well, based on the CEO’s salary, I’d say they are indeed. I found that the median total compensation for CEOs of companies like Encore Capital Group with a market capitalization between $1.0 billion and $3.2 billion is around $5.4 million.

The CEO of Encore Capital Group received compensation of $4.6 million for the year ending . That seems pretty reasonable, especially given that it’s below the median for companies of a similar size. Although the level of CEO compensation is not a determining factor in my view of the company, modest compensation is positive, as it suggests that the board has the interests of shareholders in mind. I would also say that reasonable levels of compensation attest to good decision-making more generally.

Does Encore Capital Group deserve a place on your watch list?

Encore Capital Group’s earnings took off like any random cryptocurrency, in 2017. The icing on the cake is that insiders own a bucket of shares, and the CEO’s salary really seems quite reasonable. The strong improvement in EPS suggests businesses are doing well. Encore Capital Group certainly ticks a few of my boxes, so I think it’s probably worth looking into further. However, before you get too excited, we found out 2 warning signs for Encore Capital Group of which you should be aware.

You can invest in the company of your choice. But if you’d rather focus on stocks that have been insider buying, here’s a list of companies that have been insider buying over the past three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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