Duke Energy 26441CBT1 Bond
DUK Stock | USD 101.33 0.07 0.07% |
Duke Energy holds a debt-to-equity ratio of 1.381. At this time, Duke Energy's Short and Long Term Debt Total is quite stable compared to the past year. Net Debt is expected to rise to about 84.3 B this year, although the value of Short and Long Term Debt will most likely fall to about 6.3 B. . Duke Energy's financial risk is the risk to Duke Energy stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Duke Energy'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. Duke Energy'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 Duke Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Duke Energy's stakeholders.
For most companies, including Duke Energy, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Duke Energy, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Duke Energy's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.5527 | Book Value 61.644 | Operating Margin 0.2545 | Profit Margin 0.1095 | Return On Assets 0.0262 |
Duke |
Given the importance of Duke Energy's capital structure, the first step in the capital decision process is for the management of Duke Energy 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 Duke Energy to issue bonds at a reasonable cost.
Popular Name | Duke Energy DUK 45 15 AUG 32 |
Specialization | Utilities - Regulated Electric |
Equity ISIN Code | US26441C2044 |
Bond Issue ISIN Code | US26441CBT18 |
Duke Energy Outstanding Bond Obligations
DUKE ENERGY P | US26441CAP05 | Details | |
DUKE ENERGY P | US26441CAS44 | Details | |
DUKE ENERGY P | US26441CAT27 | Details | |
DUKE ENERGY P | US26441CAX39 | Details | |
DUKE ENERGY P | US26441CAY12 | Details | |
US26441CBE49 | US26441CBE49 | Details | |
US26441CBF14 | US26441CBF14 | Details | |
DUKE ENERGY P | US26441CBH79 | Details | |
US26441CBJ36 | US26441CBJ36 | Details | |
DUKE ENERGY P | US26441CBL81 | Details | |
DUKE ENERGY P | US26441CBM64 | Details | |
DUKE ENERGY P | US26441CBN48 | Details | |
DUK 325 15 JAN 82 | US26441CBP95 | Details | |
DUK 43 15 MAR 28 | US26441CBS35 | Details | |
DUK 45 15 AUG 32 | US26441CBT18 | Details | |
DUK 5 15 AUG 52 | US26441CBU80 | Details |
Understaning Duke Energy Use of Financial Leverage
Duke Energy financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Duke Energy'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 Duke Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall Duke Energy 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 Duke Energy'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 Duke Energy'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 Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 80.6 B | 84.7 B | |
Net Debt | 80.3 B | 84.3 B | |
Short Term Debt | 7.3 B | 7.6 B | |
Long Term Debt | 72.5 B | 36.6 B | |
Long Term Debt Total | 77.1 B | 54.6 B | |
Short and Long Term Debt | 7.1 B | 6.3 B | |
Net Debt To EBITDA | 6.50 | 4.10 | |
Debt To Equity | 1.61 | 0.86 | |
Interest Debt Per Share | 106.64 | 111.97 | |
Debt To Assets | 0.44 | 0.26 | |
Long Term Debt To Capitalization | 0.59 | 0.38 | |
Total Debt To Capitalization | 0.62 | 0.41 | |
Debt Equity Ratio | 1.61 | 0.86 | |
Debt Ratio | 0.44 | 0.26 | |
Cash Flow To Debt Ratio | 0.12 | 0.22 |
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Additional Information and Resources on Investing in Duke Stock
When determining whether Duke Energy is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Duke Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Duke Energy Stock. Highlighted below are key reports to facilitate an investment decision about Duke Energy Stock:Check out the analysis of Duke Energy Fundamentals Over Time. For more information on how to buy Duke Stock please use our How to buy in Duke Stock guide.You can also try the Stocks Directory module to find actively traded stocks across global markets.
Is Electric Utilities space 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 Duke Energy. If investors know Duke 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 Duke Energy 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 0.427 | Dividend Share 4.08 | Earnings Share 5.59 | Revenue Per Share 37.597 | Quarterly Revenue Growth 0.054 |
The market value of Duke Energy is measured differently than its book value, which is the value of Duke that is recorded on the company's balance sheet. Investors also form their own opinion of Duke Energy's value that differs from its market value or its book value, called intrinsic value, which is Duke Energy'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 Duke Energy's market value can be influenced by many factors that don't directly affect Duke Energy'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 Duke Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Duke Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Duke Energy'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.