Postal Realty Current Debt
| PSTL Stock | USD 13.76 0.13 0.94% |
Postal Realty Trust holds a debt-to-equity ratio of 0.658. At this time, Postal Realty's Debt To Equity is quite stable compared to the past year. Debt To Assets is expected to rise to 0.64 this year, although the value of Short and Long Term Debt will most likely fall to about 9.8 M. Postal Realty's financial risk is the risk to Postal Realty stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Postal Realty'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. Postal Realty'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 Postal Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Postal Realty's stakeholders.
For most companies, including Postal Realty, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Postal Realty Trust 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 1.2693 | Book Value 10.963 | Operating Margin 0.1758 | Profit Margin 0.0542 | Return On Assets 0.0165 |
Postal |
Postal Realty Financial Leverage Rating
Postal Realty Trust bond ratings play a critical role in determining how much Postal Realty 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 Postal Realty's borrowing costs.| Piotroski F Score | 7 Strong |
| Beneish M Score | -2.45 Unlikely Manipulator |
Postal Realty Trust Debt to Cash Allocation
As Postal Realty Trust follows its natural business cycle, the capital allocation decisions will not magically go away. Postal Realty'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 254.72 M in liabilities with Debt to Equity (D/E) ratio of 0.66, which is about average as compared to similar companies. Postal Realty Trust has a current ratio of 3.98, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Postal Realty until it has trouble settling it off, either with new capital or with free cash flow. So, Postal Realty's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Postal Realty Trust sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Postal to invest in growth at high rates of return. When we think about Postal Realty's use of debt, we should always consider it together with cash and equity.Postal Realty Total Assets Over Time
Postal Realty Assets Financed by 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 Postal Realty's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Postal Realty, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Postal Realty debt ratio should be compared their industry average or other competing firms.Postal Long Term Debt
Long Term Debt |
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Understaning Postal Realty Use of Financial Leverage
Postal Realty financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Postal Realty'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 Postal Realty assets, the company is considered highly leveraged. Understanding the composition and structure of overall Postal Realty 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 Postal Realty'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 Postal Realty'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 | ||
| Long Term Debt | 231.6 M | 243.2 M | |
| Long Term Debt Total | 188.3 M | 197.7 M | |
| Short Term Debt | 112 K | 106.4 K | |
| Short and Long Term Debt Total | 254.7 M | 267.5 M | |
| Net Debt | 251.9 M | 264.4 M | |
| Short and Long Term Debt | 10.3 M | 9.8 M | |
| Net Debt To EBITDA | 7.48 | 9.50 | |
| Debt To Equity | 0.99 | 1.04 | |
| Interest Debt Per Share | 12.21 | 8.44 | |
| Debt To Assets | 0.42 | 0.64 | |
| Long Term Debt To Capitalization | 0.50 | 0.66 | |
| Total Debt To Capitalization | 0.50 | 0.77 | |
| Debt Equity Ratio | 0.99 | 1.04 | |
| Debt Ratio | 0.42 | 0.64 | |
| Cash Flow To Debt Ratio | 0.12 | 0.08 |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Postal Realty in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Postal Realty's short interest history, or implied volatility extrapolated from Postal Realty options trading.
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Check out the analysis of Postal Realty Fundamentals Over Time. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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When running Postal Realty's price analysis, check to measure Postal Realty'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 Postal Realty is operating at the current time. Most of Postal Realty's value examination focuses on studying past and present price action to predict the probability of Postal Realty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Postal Realty's price. Additionally, you may evaluate how the addition of Postal Realty to your portfolios can decrease your overall portfolio volatility.
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Is Postal Realty'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 Postal Realty. If investors know Postal 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 Postal Realty 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 3.294 | Dividend Share 0.955 | Earnings Share 0.12 | Revenue Per Share 3.161 | Quarterly Revenue Growth 0.141 |
The market value of Postal Realty Trust is measured differently than its book value, which is the value of Postal that is recorded on the company's balance sheet. Investors also form their own opinion of Postal Realty's value that differs from its market value or its book value, called intrinsic value, which is Postal Realty'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 Postal Realty's market value can be influenced by many factors that don't directly affect Postal Realty'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 Postal Realty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Postal Realty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Postal Realty'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.