Bristow Bonds
| VTOL Stock | USD 26.11 0.03 0.11% |
Bristow Group holds a debt-to-equity ratio of 0.922. At this time, Bristow's Short Term Debt is quite stable compared to the past year. Long Term Debt Total is expected to rise to about 279.7 M this year, although the value of Net Debt will most likely fall to about 359.1 M. Bristow's financial risk is the risk to Bristow 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
Bristow'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. Bristow'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 Bristow Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Bristow's stakeholders.
Bristow Quarterly Net Debt |
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For most companies, including Bristow, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Bristow 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 0.8794 | Book Value 29.095 | Operating Margin 0.0567 | Profit Margin (0.01) | Return On Assets 0.0184 |
Given that Bristow's 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 Bristow 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 Bristow to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Bristow is said to be less leveraged. If creditors hold a majority of Bristow's assets, the Company is said to be highly leveraged.
At this time, Bristow's Short Term Debt is quite stable compared to the past year. Long Term Debt Total is expected to rise to about 279.7 M this year, although the value of Net Debt will most likely fall to about 359.1 M. Bristow |
Bristow Bond Ratings
Bristow Group bond ratings play a critical role in determining how much Bristow 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 Bristow's borrowing costs.| Piotroski F Score | 8 Strong |
| Beneish M Score | -4.07 Unlikely Manipulator |
Bristow Group Debt to Cash Allocation
As Bristow Group follows its natural business cycle, the capital allocation decisions will not magically go away. Bristow'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 13.25 M in liabilities with Debt to Equity (D/E) ratio of 0.92, which is about average as compared to similar companies. Bristow Group has a current ratio of 1.7, which is within standard range for the sector. Debt can assist Bristow until it has trouble settling it off, either with new capital or with free cash flow. So, Bristow'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 Bristow Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Bristow to invest in growth at high rates of return. When we think about Bristow's use of debt, we should always consider it together with cash and equity.Bristow Total Assets Over Time
Bristow 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 Bristow's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Bristow, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Bristow debt ratio should be compared their industry average or other competing firms.Bristow Corporate Bonds Issued
Bristow issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Bristow Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Bristow bonds can be classified according to their maturity, which is the date when Bristow Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Bristow Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Bristow Use of Financial Leverage
Bristow financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Bristow'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 Bristow assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bristow 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 Bristow'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 Bristow'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 | ||
| Short and Long Term Debt Total | 160.1 M | 152.1 M | |
| Net Debt | 367.8 M | 359.1 M | |
| Short Term Debt | 101.1 M | 106.2 M | |
| Long Term Debt | 534.8 M | 141.8 M | |
| Long Term Debt Total | 163.1 M | 279.7 M | |
| Short and Long Term Debt | 11.9 M | 11.3 M | |
| Net Debt To EBITDA | 4.20 | 3.99 | |
| Debt To Equity | 0.67 | 0.60 | |
| Interest Debt Per Share | 20.16 | 10.29 | |
| Debt To Assets | 0.37 | 0.50 | |
| Long Term Debt To Capitalization | 0.35 | 0.30 | |
| Total Debt To Capitalization | 0.38 | 0.31 | |
| Debt Equity Ratio | 0.67 | 0.60 | |
| Debt Ratio | 0.37 | 0.50 | |
| Cash Flow To Debt Ratio | (0.03) | (0.03) |
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 Bristow 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, Bristow's short interest history, or implied volatility extrapolated from Bristow options trading.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Bristow Group is a strong investment it is important to analyze Bristow's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bristow's future performance. For an informed investment choice regarding Bristow Stock, refer to the following important reports:Check out the analysis of Bristow Fundamentals Over Time. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Complementary Tools for Bristow Stock analysis
When running Bristow's price analysis, check to measure Bristow'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 Bristow is operating at the current time. Most of Bristow's value examination focuses on studying past and present price action to predict the probability of Bristow's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bristow's price. Additionally, you may evaluate how the addition of Bristow to your portfolios can decrease your overall portfolio volatility.
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Is Bristow'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 Bristow. If investors know Bristow 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 Bristow 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 (0.74) | Earnings Share (0.24) | Revenue Per Share 44.93 | Quarterly Revenue Growth 0.083 | Return On Assets 0.0184 |
The market value of Bristow Group is measured differently than its book value, which is the value of Bristow that is recorded on the company's balance sheet. Investors also form their own opinion of Bristow's value that differs from its market value or its book value, called intrinsic value, which is Bristow'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 Bristow's market value can be influenced by many factors that don't directly affect Bristow'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 Bristow's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bristow is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bristow'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.