Clarus Corp Current Financial Leverage

CLAR -  USA Stock  

USD 28.27  0.19  0.68%

Clarus Corp'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. Clarus Corp's financial risk is the risk to Clarus Corp 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 Clarus Corp Fundamentals Over Time.

Search Bonds 

 
Refresh
Clarus Corp Debt Current is relatively stable at the moment as compared to the past year. Clarus Corp reported last year Debt Current of 4.6 Million. As of 07/24/2021, Issuance Repayment of Debt Securities is likely to grow to about 12.9 M, while Debt Non Current is likely to drop slightly above 27.7 M.

Clarus Current Financial Burden

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

Asset vs Debt

Equity vs Debt

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

Clarus Corp Quarterly Debt to Equity Ratio

0.328Share
Given the importance of Clarus Corp's capital structure, the first step in the capital decision process is for the management of Clarus Corp 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 Clarus Corp to issue bonds at a reasonable cost.

Clarus Corp Financial Leverage Rating

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

Clarus Corp Debt to Cash Allocation

As Clarus Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Clarus Corp'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 28.65 M in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest the company is not taking enough advantage from borrowing. Clarus Corp has a current ratio of 3.71, suggesting that it is liquid enough and is able to pay its financial obligations when due.

Clarus Corp Inventories Over Time

Clarus Corp Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Clarus Corp 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.

Clarus Corp Debt Ratio

    
  11.82   
It seems most of the Clarus Corp's assets are financed through equity. 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 Clarus Corp's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Clarus Corp, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Clarus Corp debt ratio should be compared their industry average or other competing firms.
Share Download
Share Download

Clarus Corp Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Clarus Corp, understanding its historical liability is critical in projecting Clarus Corp'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 Clarus Corp uses its financing power over time.

Understaning Clarus Corp Use of Financial Leverage

Clarus Corp financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Clarus Corp'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 Clarus Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Clarus Corp 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 Debt34.6 M30 M
Debt Current4.6 M5.1 M
Debt Non Current30.6 M27.7 M
Issuance Repayment of Debt Securities12 M12.9 M
Long Term Debt to Equity 0.15  0.16 
Debt to Equity Ratio 0.37  0.37 
Clarus Corporation focuses on the outdoor and consumer industries in the United States, Canada, Europe, the Middle East, Asia, Australia, New Zealand, Africa, and South America. Clarus Corporation was incorporated in 1991 and is headquartered in Salt Lake City, Utah. Clarus Corp operates under Leisure classification in the United States and is traded on NASDAQ Exchange. It employs 600 people.

Clarus Corp Investors Sentiment

The influence of Clarus Corp'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 Clarus. 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 - CLAR

Clarus Corp Investor Sentiment

Most of Macroaxis users are currently bullish on Clarus Corp. What is your opinion about investing in Clarus Corp? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
Skip

Pair Trading with Clarus Corp

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

Clarus Corp Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Clarus Corp and Brunswick Corp. 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
Run Pair Correlation  
Continue to the analysis of Clarus Corp Fundamentals Over Time. Note that the Clarus Corp information on this page should be used as a complementary analysis to other Clarus Corp'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Complementary Tools for Clarus Stock analysis

When running Clarus Corp price analysis, check to measure Clarus Corp'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 Clarus Corp is operating at the current time. Most of Clarus Corp's value examination focuses on studying past and present price action to predict the probability of Clarus Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Clarus Corp's price. Additionally, you may evaluate how the addition of Clarus Corp to your portfolios can decrease your overall portfolio volatility.
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
The market value of Clarus Corp is measured differently than its book value, which is the value of Clarus that is recorded on the company's balance sheet. Investors also form their own opinion of Clarus Corp's value that differs from its market value or its book value, called intrinsic value, which is Clarus Corp'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 Clarus Corp's market value can be influenced by many factors that don't directly affect Clarus Corp 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 Clarus Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Clarus Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Clarus Corp'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.