Bbva Banco Current Financial Leverage

BBAR -  USA Stock  

USD 3.06  0.05  1.66%

Bbva Banco'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. Bbva Banco's financial risk is the risk to Bbva Banco 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).
Continue to the analysis of Bbva Banco Fundamentals Over Time.

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Given the importance of Bbva Banco's capital structure, the first step in the capital decision process is for the management of Bbva Banco 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 Bbva Banco Frances to issue bonds at a reasonable cost.

Bbva Banco Financial Leverage Rating

Bbva Banco Frances bond ratings play a critical role in determining how much Bbva Banco 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 Bbva Banco's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A

Bbva Banco Frances Debt to Cash Allocation

As Bbva Banco Frances follows its natural business cycle, the capital allocation decisions will not magically go away. Bbva Banco'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 42.48 B in liabilities.

Bbva Banco 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 Bbva Banco's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Bbva Banco, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Bbva Banco debt ratio should be compared their industry average or other competing firms.

Bbva Banco Frances Historical Debt Patterns

Understaning Bbva Banco Use of Financial Leverage

Bbva Banco financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Bbva Banco'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 Bbva Banco assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bbva Banco 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.
Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. Banco BBVA Argentina S.A. was founded in 1886 and is based in Buenos Aires, Argentina. Bbva Banco operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 6004 people.

Bbva Banco Investors Sentiment

The influence of Bbva Banco's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Bbva Banco. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - BBAR

Bbva Banco Frances Investor Sentiment

Macroaxis portfolio users are unresponsive in their opinion about investing in Bbva Banco Frances. What is your opinion about investing in Bbva Banco Frances? Are you bullish or bearish?
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Pair Trading with Bbva Banco

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 Bbva Banco 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 Bbva Banco will appreciate offsetting losses from the drop in the long position's value.

Bbva Banco Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Bbva Banco and China Merchants Bank. 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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Continue to the analysis of Bbva Banco Fundamentals Over Time. Note that the Bbva Banco Frances information on this page should be used as a complementary analysis to other Bbva Banco'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 Bbva Banco Frances price analysis, check to measure Bbva Banco'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 Bbva Banco is operating at the current time. Most of Bbva Banco's value examination focuses on studying past and present price action to predict the probability of Bbva Banco's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Bbva Banco's price. Additionally, you may evaluate how the addition of Bbva Banco to your portfolios can decrease your overall portfolio volatility.
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The market value of Bbva Banco Frances is measured differently than its book value, which is the value of Bbva Banco that is recorded on the company's balance sheet. Investors also form their own opinion of Bbva Banco's value that differs from its market value or its book value, called intrinsic value, which is Bbva Banco'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 Bbva Banco's market value can be influenced by many factors that don't directly affect Bbva Banco Frances 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 Bbva Banco's value and its price as these two are different measures arrived at by different means. Investors typically determine Bbva Banco value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bbva Banco'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.