Tokyo Electric Current Financial Leverage

TKECY -  USA Stock  

USD 3.02  0.18  5.62%

Tokyo Electric'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. Tokyo Electric's financial risk is the risk to Tokyo Electric 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, take a look at the analysis of Tokyo Electric Fundamentals Over Time.

Tokyo Bonds 

 
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Tokyo Current Financial Burden

Tokyo Electric'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. Tokyo Electric'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 Tokyo OTC Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Tokyo Electric's stakeholders.

Asset vs Debt

Equity vs Debt

For most companies, including Tokyo Electric, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Tokyo Electric Power 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.
Given the importance of Tokyo Electric's capital structure, the first step in the capital decision process is for the management of Tokyo Electric 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 Tokyo Electric Power to issue bonds at a reasonable cost.

Tokyo Electric Financial Leverage Rating

Tokyo Electric Power bond ratings play a critical role in determining how much Tokyo Electric 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 Tokyo Electric's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A

Tokyo Electric Power Debt to Cash Allocation

As Tokyo Electric Power follows its natural business cycle, the capital allocation decisions will not magically go away. Tokyo Electric'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 has accumulated 5180 B in total debt with debt to equity ratio (D/E) of 1.63, which is about average as compared to similar companies. Tokyo Electric Power has a current ratio of 0.46, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due.

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

Understaning Tokyo Electric Use of Financial Leverage

Tokyo Electric financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Tokyo Electric'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 Tokyo Electric assets, the company is considered highly leveraged. Understanding the composition and structure of overall Tokyo Electric 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.
Tokyo Electric Power Company Holdings, Incorporated generates, transmits, distributes, and retails electric power in Japan and internationally. Tokyo Electric Power Company Holdings, Incorporated is a subsidiary of Nuclear Damage Compensation and Decommissioning Facilitation Corporation. Tokyo Electric operates under UtilitiesRenewable classification in the United States and is traded on OTC Exchange. It employs 37891 people.

Tokyo Electric Investors Sentiment

The influence of Tokyo Electric's 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 Tokyo. 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 - TKECY

Tokyo Electric Power Investor Sentiment

Macroaxis portfolio users are evenly split in their outlook on investing in Tokyo Electric Power. What is your outlook on investing in Tokyo Electric Power? Are you bullish or bearish?
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Additionally, take a look at the analysis of Tokyo Electric Fundamentals Over Time. Note that the Tokyo Electric Power information on this page should be used as a complementary analysis to other Tokyo Electric'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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