Total Debt

Asset symbol is not found or was delisted

We are unable to locate this entity at this time. If you believe the symbol you are trying to look up is valid, please let us know, and we will check it out. Check all delisted instruments across multiple markets.

Indicator Description

In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Total Debt

 = 

Bonds

+

Notes

Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Total Debt In A Nutshell

If you are a value investor, you want to see a company have very minimal debt or no debt at all. In combination with that, you want the company to have lots of cash on hand so they can continue operating through the slow times, providing you with value in your investments if the company can pull through and eventually grow.

Total debt is a measurement that is important in fundamental analysis. As the title states, total debt would be all debts, such as bonds, loans, and anything the company owes money on. If a company has debt, you want to see that the debt is being used wisely and that the company is not highly leveraged, meaning if they slow down in sales, it could become an issue with repayments.

Closer Look at Total Debt

You can break debt out into a few parts to understand it better. With bonds, you want to see how much they’ve financed, the rates, and when they are due to pay back on those bonds. It could be a very small amount or many, either way, you want to see how that fits into the debt picture. Secondly, you could look at notes with lenders to see when those expire or how much the monthly payments are. This would include lines of credit, as they are similar but have their slight differences. Lastly, any short term debt should be noted because that should be going away within a year. What you do not want to see if a chain of long term debt being used to pay short term debt, which could be a vicious cycle that is indicating a cash flow issue.

Debt does not play into technical analysis much, but it could still be a factor non the less. Be sure to fully understand the intention of each debt because if it is being used to expand or grow the business, look at it as an investment because that will likely return more to you. Besides that, use common sense and if the debt pattern seems fishy, it probably is. Debt can be a powerful leveraging tool in business, but if used incorrectly, could bring a business down. There are many ratios to use as well if you are looking to compare across an industry so be sure to pay close attention to those. If you still have questions, reach out to an investing community and ask for peer input, as that can help to guide your thought process.

Other Suggestions

V Visa Class ACompany
VIASP Via RenewablesCompany
VVR Invesco Senior IncomeFund
VB Vanguard Small Cap IndexETF
VXD DJIA VolatilityIndex
VIB VIBCryptocurrency
V6703DAA2 BHARTI 565Corporate Bond

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.

Use Investing Themes to Complement your positions

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Information Technology ETFs Thematic Idea Now

Information Technology ETFs
Information Technology ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Information Technology ETFs theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Information Technology ETFs Theme or any other thematic opportunities.
View All  Next Launch
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk