Atkore Current Financial Leverage

ATKR -  USA Stock  

USD 71.85  0.60  0.84%

Atkore's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Atkore's financial risk is the risk to Atkore stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Please continue to the analysis of Atkore Fundamentals Over Time.

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Atkore Long Term Debt to Equity is relatively stable at the moment as compared to the past year. Atkore reported last year Long Term Debt to Equity of 1.91. As of 07/28/2021, Debt to Equity Ratio is likely to grow to 3.64, while Total Debt is likely to drop slightly above 936.1 M.

Atkore Current Financial Burden

Atkore'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. Atkore'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 Atkore Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Atkore's stakeholders.

Asset vs Debt

Equity vs Debt

Given that Atkore'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 Atkore 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 Atkore to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Atkore is said to be less leveraged. If creditors hold a majority of Atkore's assets, the company is said to be highly leveraged.

Atkore Quarterly Debt to Equity Ratio

2.104Share
Given the importance of Atkore's capital structure, the first step in the capital decision process is for the management of Atkore 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 Atkore Inc to issue bonds at a reasonable cost.

Atkore Financial Leverage Rating

Atkore Inc bond ratings play a critical role in determining how much Atkore 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 Atkore's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
5  Healthy
Beneish M Score

Atkore Inc Debt to Cash Allocation

As Atkore Inc follows its natural business cycle, the capital allocation decisions will not magically go away. Atkore'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. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company currently holds 800.98 M in liabilities with Debt to Equity (D/E) ratio of 1.4, which is about average as compared to similar companies. Atkore Inc has a current ratio of 3.06, suggesting that it is liquid enough and is able to pay its financial obligations when due.

Atkore Inventories Over Time

Atkore Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Atkore uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Atkore Debt Ratio

    
  55.47   
It seems slightly above 44% of Atkore's assets are financed be 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 Atkore's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Atkore, which in turn will lower the firm's financial flexibility. Like all other financial ratios, an Atkore debt ratio should be compared their industry average or other competing firms.
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Atkore Inc Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Atkore, understanding its historical liability is critical in projecting Atkore's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Atkore uses its financing power over time.

Understaning Atkore Use of Financial Leverage

Atkore financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Atkore'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 Atkore assets, the company is considered highly leveraged. Understanding the composition and structure of overall Atkore 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.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Total Debt970.2 M936.1 M
Debt Current14.2 M14 M
Debt Non Current952.1 M918.8 M
Issuance Repayment of Debt Securities-38.9 M-39.9 M
Long Term Debt to Equity 1.91  2.24 
Debt to Equity Ratio 2.81  3.64 
Atkore Inc. manufactures and distributes electrical raceway products, and mechanical products and solutions in the United States and internationally. Atkore Inc. was founded in 1959 and is headquartered in Harvey, Illinois. Atkore operates under Electrical Equipment Parts classification in the United States and is traded on New York Stock Exchange. It employs 3256 people.

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Our tools can tell you how much better you can do entering a position in Atkore without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Atkore

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Atkore position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Atkore will appreciate offsetting losses from the drop in the long position's value.

Atkore Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Atkore and Barnes Group. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Please continue to the analysis of Atkore Fundamentals Over Time. Note that the Atkore Inc information on this page should be used as a complementary analysis to other Atkore's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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When running Atkore Inc price analysis, check to measure Atkore's 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 Atkore is operating at the current time. Most of Atkore's value examination focuses on studying past and present price action to predict the probability of Atkore's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Atkore's price. Additionally, you may evaluate how the addition of Atkore to your portfolios can decrease your overall portfolio volatility.
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The market value of Atkore Inc is measured differently than its book value, which is the value of Atkore that is recorded on the company's balance sheet. Investors also form their own opinion of Atkore's value that differs from its market value or its book value, called intrinsic value, which is Atkore'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 Atkore's market value can be influenced by many factors that don't directly affect Atkore Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Atkore's value and its price as these two are different measures arrived at by different means. Investors typically determine Atkore value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atkore'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.