Citigroup CITIGROUP Bond

C Stock  USD 62.75  1.09  1.77%   
Citigroup holds a debt-to-equity ratio of 0.91. At present, Citigroup's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 331.3 B, whereas Short and Long Term Debt is forecasted to decline to about 35.6 B. Citigroup's financial risk is the risk to Citigroup 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).

Asset vs Debt

Equity vs Debt

Citigroup'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. Citigroup'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 Citigroup Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Citigroup's stakeholders.
For most companies, including Citigroup, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Citigroup the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Price Book
0.6287
Book Value
98.708
Operating Margin
(0.09)
Profit Margin
0.1305
Return On Assets
0.0039
At present, Citigroup's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 331.3 B, whereas Short and Long Term Debt is forecasted to decline to about 35.6 B.
  
Check out the analysis of Citigroup Fundamentals Over Time.
For information on how to trade Citigroup Stock refer to our How to Trade Citigroup Stock guide.
View Bond Profile
Given the importance of Citigroup's capital structure, the first step in the capital decision process is for the management of Citigroup 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 Citigroup to issue bonds at a reasonable cost.
Popular NameCitigroup CITIGROUP INC 6625
SpecializationBanks - Diversified
Equity ISIN CodeUS1729674242
Bond Issue ISIN CodeUS172967AR23
S&P Rating
Others
Maturity Date15th of January 2028
Issuance Date9th of January 1998
Coupon6.625 %
View All Citigroup Outstanding Bonds

Citigroup Outstanding Bond Obligations

CITIGROUP INC 6675US172967HA25Details
CITIGROUP INC 55US172967HB08Details
Citigroup 535 percentUS172967GR68Details
C 627 17 NOV 33US172967PA33Details
C 7375US172967PC98Details
CITIGROUP INC 5875US172967FX46Details
CITIGROUP INC 33US172967JP75Details
CITIGROUP INC 44US172967JT97Details
CITIGROUP INC 465US172967JU60Details
US172967AL52US172967AL52Details
CITIGROUP INC 6875US172967AM36Details
US172967AQ40US172967AQ40Details
CITIGROUP INC 6625US172967AR23Details
CITIGROUP INC 3875US172967JL61Details
C 595US172967JM45Details
CITIGROUP INC 6875US172967AS06Details
CITIGROUP INC 43US172967JC62Details
Citigroup 63 percentUS172967HQ76Details
CITIGROUP INC 53US172967HS33Details
CITIGROUP INC 375US172967HT16Details
CITIGROUP INC 4US172967HV61Details
US172967LU33US172967LU33Details
US172967LW98US172967LW98Details
CITIGROUP INC 585US172967CT60Details
US172967LP48US172967LP48Details
US172967LS86US172967LS86Details
US172967LD18US172967LD18Details
US172967LJ87US172967LJ87Details
CITIGROUP INC 6US172967CC36Details
CITIGROUP INC 475US172967KR13Details
CITIGROUP INC 4125US172967KU42Details
CITIGROUP INC 32US172967KY63Details
CITIGROUP INC 46US172967KJ96Details
C 625US172967KM26Details
CITIGROUP INC 34US172967KN09Details
CITIGROUP INC 5875US172967BU43Details
CITIGROUP INC 445US172967KA87Details
CITIGROUP INC 6625US172967BL44Details
CITIGROUP INC 37US172967KG57Details
C 5947141 24 MAY 25US172967NR85Details
C 4658 24 MAY 28US172967NS68Details
C 491 24 MAY 33US172967NU15Details
Citigroup 561 percentUS172967NX53Details
CITIGROUP INC 6875US172967EP21Details
C 329 17 MAR 26US172967NL16Details
C 5975067 17 MAR 26US172967NM98Details
C 3785 17 MAR 33US172967NN71Details
C 414 24 MAY 25US172967NQ03Details
CITIGROUP INC 8125US172967EW71Details
CITIGROUP INCUS172967NA50Details
C 415US172967NB34Details
C 1281 03 NOV 25US172967ND99Details
C 252 03 NOV 32US172967NE72Details
C 2904 03 NOV 42US172967NF48Details
C 307 24 FEB 28US172967NG21Details
C 5855141 24 FEB 28US172967NH04Details
US172967MX62US172967MX62Details
CITIGROUP INCUS172967MY46Details
C 51596 09 JUN 27US172967MZ11Details
CITIGROUP INC 5875US172967EC18Details
CITIGROUP INCUS172967MP39Details
CITIGROUP INCUS172967MQ12Details
CITIGROUP INCUS172967MS77Details
US172967MT50US172967MT50Details
C 4US172967MU24Details
C 3875US172967MV07Details
C 523049 01 MAY 25US172967MW89Details
Citigroup 5 percentUS172967MG30Details
C 47US172967MK42Details
US172967DR95US172967DR95Details
CITIGROUP INCUS172967ML25Details
CITIGROUP INCUS172967MM08Details
C 550786 25 AUG 36US172967DS78Details
Citigroup FRN 1jul2026US172967MB43Details
CITIGROUP INC 465US172967MD09Details
CITIGROUP INCUS172967ME81Details
CITIGROUP INC 3352US172967MF56Details

Understaning Citigroup Use of Financial Leverage

Citigroup financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Citigroup'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 Citigroup assets, the company is considered highly leveraged. Understanding the composition and structure of overall Citigroup 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. Financial leverage can amplify the potential profits to Citigroup's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Citigroup's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
Last ReportedProjected for 2024
Short and Long Term Debt Total594.3 B624 B
Net Debt333.4 B350 B
Short Term Debt315.6 B331.3 B
Long Term Debt286.6 B318.9 B
Long Term Debt Total244.4 B299.6 B
Short and Long Term Debt37.5 B35.6 B
Long Term Debt To Capitalization 0.57  0.46 
Total Debt To Capitalization 0.74  0.70 
Debt Equity Ratio 2.88  2.20 
Debt Ratio 0.24  0.20 
Cash Flow To Debt Ratio 0  0 
Please read more on our technical analysis page.

Pair Trading with Citigroup

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

Moving together with Citigroup Stock

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The ability to find closely correlated positions to Citigroup could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Citigroup when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Citigroup - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Citigroup to buy it.
The correlation of Citigroup is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Citigroup moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Citigroup moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Citigroup can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Citigroup offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Citigroup'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 Citigroup Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Citigroup Stock:
Check out the analysis of Citigroup Fundamentals Over Time.
For information on how to trade Citigroup Stock refer to our How to Trade Citigroup Stock guide.
Note that the Citigroup information on this page should be used as a complementary analysis to other Citigroup'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 the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Complementary Tools for Citigroup Stock analysis

When running Citigroup's price analysis, check to measure Citigroup'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 Citigroup is operating at the current time. Most of Citigroup's value examination focuses on studying past and present price action to predict the probability of Citigroup's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Citigroup's price. Additionally, you may evaluate how the addition of Citigroup to your portfolios can decrease your overall portfolio volatility.
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Is Citigroup's industry 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 Citigroup. If investors know Citigroup 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 Citigroup 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
(0)
Dividend Share
2.08
Earnings Share
4.04
Revenue Per Share
36.63
Quarterly Revenue Growth
(0.09)
The market value of Citigroup is measured differently than its book value, which is the value of Citigroup that is recorded on the company's balance sheet. Investors also form their own opinion of Citigroup's value that differs from its market value or its book value, called intrinsic value, which is Citigroup'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 Citigroup's market value can be influenced by many factors that don't directly affect Citigroup'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 Citigroup's value and its price as these two are different measures arrived at by different means. Investors typically determine if Citigroup is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Citigroup'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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.