Destination Current Financial Leverage

DXLG -  USA Stock  

USD 4.94  0.02  0.40%

Destination'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. Destination's financial risk is the risk to Destination 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 Destination Fundamentals Over Time.

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Destination Long Term Debt to Equity is projected to increase slightly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.29
Given the importance of Destination's capital structure, the first step in the capital decision process is for the management of Destination 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 Destination XL Group to issue bonds at a reasonable cost.

Destination Financial Leverage Rating

Destination XL Group bond ratings play a critical role in determining how much Destination 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 Destination's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
7  Strong
Beneish M Score

Destination XL Group Debt to Cash Allocation

As Destination XL Group follows its natural business cycle, the capital allocation decisions will not magically go away. Destination'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 218.3 M in liabilities. Destination XL Group has a current ratio of 0.8, indicating that it has a negative working capital and may not be able to pay financial obligations when due.

Destination Inventories Over Time

Destination Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Destination 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.

Destination Debt Ratio

    
  55.4   
It looks as if about 44% of Destination'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 Destination's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Destination, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Destination debt ratio should be compared their industry average or other competing firms.
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Destination XL Group Historical Debt Patterns

Destination Total Debt

Total Debt

169.45 MillionShare
Destination Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 253.81 Million

Understaning Destination Use of Financial Leverage

Destination financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Destination'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 Destination assets, the company is considered highly leveraged. Understanding the composition and structure of overall Destination 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 Debt253.8 M169.4 M
Debt Current103.1 M80.1 M
Debt Non Current150.7 M89.3 M
Issuance Repayment of Debt Securities20.1 M25.2 M
Long Term Debt to Equity 0.29  0.31 
Debt to Equity Ratio(76.24) (39.02) 
Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall mens clothing and shoes in the United States and Canada. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts. Destination operates under Apparel Retail classification in the United States and is traded on OTC Exchange. It employs 1316 people.

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Our tools can tell you how much better you can do entering a position in Destination 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 Destination

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

Destination Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Destination and Duluth Hld Cl. 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 Destination Fundamentals Over Time. Note that the Destination XL Group information on this page should be used as a complementary analysis to other Destination'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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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