Maximus Current Financial Leverage

MMS -  USA Stock  

USD 88.96  0.04  0.0449%

Maximus' 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. Maximus' financial risk is the risk to Maximus 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).
Additionally, see the analysis of Maximus Fundamentals Over Time.

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Maximus Total Debt is relatively stable at the moment as compared to the past year. Maximus reported last year Total Debt of 245.7 Million. As of 08/02/2021, Debt Current is likely to grow to about 113.7 M, while Debt to Equity Ratio is likely to drop 0.55.

Maximus Current Financial Burden

Maximus' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Maximus' 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 Maximus Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Maximus' stakeholders.

Asset vs Debt

Equity vs Debt

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

Maximus Quarterly Debt to Equity Ratio

0.782Share
Given the importance of Maximus' capital structure, the first step in the capital decision process is for the management of Maximus 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 Maximus to issue bonds at a reasonable cost.

Maximus Financial Leverage Rating

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

Maximus Debt to Cash Allocation

As Maximus follows its natural business cycle, the capital allocation decisions will not magically go away. Maximus' 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 has 456.71 M in debt with debt to equity (D/E) ratio of 0.33, which is OK given its current industry classification. Maximus has a current ratio of 1.54, which is typical for the industry and considered as normal.

Maximus Receivables Over Time

Maximus Assets Financed by Debt

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

Maximus Debt Ratio

    
  13.98   
It seems most of the Maximus' 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 Maximus' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Maximus, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Maximus debt ratio should be compared their industry average or other competing firms.
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Maximus Historical Liabilities

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

Understaning Maximus Use of Financial Leverage

Maximus financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Maximus'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 Maximus assets, the company is considered highly leveraged. Understanding the composition and structure of overall Maximus 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 Debt245.7 M265.1 M
Debt Current105.4 M113.7 M
Debt Non Current140.3 M151.4 M
Issuance Repayment of Debt Securities16.7 M18.1 M
Long Term Debt to Equity 0.0131  0.0134 
Debt to Equity Ratio 0.57  0.55 
Maximus, Inc. provides business process services to government health and human services programs worldwide. The company was founded in 1975 and is headquartered in Reston, Virginia. Maximus operates under Specialty Business Services classification in the United States and is traded on New York Stock Exchange. It employs 34000 people.

Maximus Investors Sentiment

The influence of Maximus' 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 Maximus. 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 - MMS

Maximus Investor Sentiment

Greater number of Macroaxis users are now bullish on Maximus. What is your trading attitude regarding investing in Maximus? Are you bullish or bearish?
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98% Bullish
2% Bearish
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Additionally, see the analysis of Maximus Fundamentals Over Time. Note that the Maximus information on this page should be used as a complementary analysis to other Maximus' 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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