Mizuho Financial MIZUHO Bond
MFG Stock | USD 3.95 0.03 0.77% |
Mizuho Financial has over 19.6 Trillion in debt which may indicate that it relies heavily on debt financing. Mizuho Financial's financial risk is the risk to Mizuho Financial 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
Mizuho Financial'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. Mizuho Financial'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 Mizuho Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Mizuho Financial's stakeholders.
For most companies, including Mizuho Financial, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Mizuho Financial Group 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 0.7686 | Book Value 3.9 K | Operating Margin 0.322 | Profit Margin 0.2247 | Return On Assets 0.0025 |
Mizuho |
Given the importance of Mizuho Financial's capital structure, the first step in the capital decision process is for the management of Mizuho Financial 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 Mizuho Financial Group to issue bonds at a reasonable cost.
Popular Name | Mizuho Financial MIZUHO FINANCIAL GROUP |
Specialization | Banks - Regional |
Equity ISIN Code | US60687Y1091 |
Bond Issue ISIN Code | US60687YAX76 |
Mizuho Financial Outstanding Bond Obligations
MIZUHO 4353 20 OCT 25 | US60687YAA73 | Details | |
MIZUHO 3477 12 APR 26 | US60687YAD13 | Details | |
MIZUHO FINL GROUP | US60687YAK55 | Details | |
MIZUHO FINL GROUP | US60687YAM12 | Details | |
MIZUHO FINL GROUP | US60687YAR09 | Details | |
MIZUHO 4254 11 SEP 29 | US60687YAT64 | Details | |
MIZUHO FINANCIAL GROUP | US60687YAX76 | Details | |
MIZUHO 2591 25 MAY 31 | US60687YBE86 | Details | |
MIZUHO FINANCIAL GROUP | US60687YBD04 | Details | |
MIZUHO FINANCIAL GROUP | US60687YBH18 | Details | |
MIZUHO FINANCIAL GROUP | US60687YBL20 | Details | |
MIZUHO 2172 22 MAY 32 | US60687YBQ17 | Details | |
MIZUHO FINANCIAL GROUP | US60687YBP34 | Details | |
MIZUHO 226 09 JUL 32 | US60687YBT55 | Details | |
MIZUHO FINANCIAL GROUP | US60687YBS72 | Details | |
MIZUHO 2564 13 SEP 31 | US60687YBU29 | Details | |
MIZUHO 3261 22 MAY 30 | US60687YBX67 | Details | |
MIZUHO 5535414 22 MAY 26 | US60687YBY41 | Details | |
MIZUHO 2651 22 MAY 26 | US60687YCA55 | Details | |
MIZUHO 5414 13 SEP 28 | US60687YCL11 | Details | |
MIZUHO 5669 13 SEP 33 | US60687YCM93 | Details | |
MIZUHO 5667 27 MAY 29 | US60687YCP25 | Details | |
MIZUHO 57 27 MAY 31 | US60687YCR80 | Details | |
MIZUHO 5754 27 MAY 34 | US60687YCT47 | Details |
Understaning Mizuho Financial Use of Financial Leverage
Mizuho Financial financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Mizuho Financial'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 Mizuho Financial assets, the company is considered highly leveraged. Understanding the composition and structure of overall Mizuho Financial 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 Mizuho Financial'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 Mizuho Financial'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).
Mizuho Financial Group, Inc., together with its subsidiaries, engages in banking, trust, securities, and other businesses related to financial services in Japan, the Americas, Europe, AsiaOceania, and internationally. Mizuho Financial Group, Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan. Mizuho Financial operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 52420 people. Please read more on our technical analysis page.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out the analysis of Mizuho Financial Fundamentals Over Time. Note that the Mizuho Financial information on this page should be used as a complementary analysis to other Mizuho Financial'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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Complementary Tools for Mizuho Stock analysis
When running Mizuho Financial's price analysis, check to measure Mizuho Financial'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 Mizuho Financial is operating at the current time. Most of Mizuho Financial's value examination focuses on studying past and present price action to predict the probability of Mizuho Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Mizuho Financial's price. Additionally, you may evaluate how the addition of Mizuho Financial to your portfolios can decrease your overall portfolio volatility.
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |
Is Mizuho Financial'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 Mizuho Financial. If investors know Mizuho 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 Mizuho Financial 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 0.082 | Dividend Share 92.5 | Earnings Share 0.33 | Revenue Per Share 229.8778 | Quarterly Revenue Growth 0.036 |
The market value of Mizuho Financial is measured differently than its book value, which is the value of Mizuho that is recorded on the company's balance sheet. Investors also form their own opinion of Mizuho Financial's value that differs from its market value or its book value, called intrinsic value, which is Mizuho Financial'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 Mizuho Financial's market value can be influenced by many factors that don't directly affect Mizuho Financial'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 Mizuho Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mizuho Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mizuho Financial'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.