Amerisourcebergen Story

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ABC -- USA Stock  

USD 104.52  0.27  0.26%

AmerisourceBergen is scheduled to announce its earnings today. The next earnings report is expected on the 6th of May 2021. AmerisourceBergen Average Equity is projected to decrease significantly based on the last few years of reporting. The past year's Average Equity was at 2.11 Billion. The current year Invested Capital is expected to grow to about 1.6 B, whereas Net Income Per Employee is forecasted to decline to (182.4 K). While some of us are becoming more enthusiastic about healthcare space, let's go over AmerisourceBergen in greater detail to make a better estimate of its debt utilization. We will analyze if it could be a much better year for AmerisourceBergen shareholders.
Published over three weeks ago
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Will AmerisourceBergen (NYSE:ABC) stockholders stop to drop in March?
AmerisourceBergen has 4.6 B in debt with debt to equity (D/E) ratio of 1.17, which is OK given its current industry classification. The entity has a current ratio of 0.96, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The company has Net Profit Margin of (1.8) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 1.3 %, which entails that for every 100 dollars of revenue, it generated 0.01 of operating income.
Amerisourcebergen financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Amerisourcebergen, including all of Amerisourcebergen's 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 Amerisourcebergen assets, the company is considered highly leveraged. Understanding the composition and structure of overall Amerisourcebergen debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Amerisourcebergen Total Debt

Amerisourcebergen Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Amerisourcebergen Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Amerisourcebergen balance sheet include debt obligations and money owed to different Amerisourcebergen vendors, workers, and loan providers. Below is the chart of Amerisourcebergen main long-term debt accounts currently reported on its balance sheet.
You can use Amerisourcebergen Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Amerisourcebergen's Liquidity

Amerisourcebergen financial leverage refers to using borrowed capital as a funding source to finance Amerisourcebergen Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Amerisourcebergen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Amerisourcebergen's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Amerisourcebergen, but it might be worth checking our own buy vs. sell analysis

Bona fide gift to John Chou of 2000 shares of Amerisourcebergen subject to Section 16

Legal trades by Amerisourcebergen insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Amerisourcebergen insider trading alert for gift of common stock by John Chou, Executive Vice President, on 17th of February 2021. This event was filed by Amerisourcebergen Corp with SEC on 2021-02-17. Statement of changes in beneficial ownership - SEC Form 4. John Chou currently serves as executive vice president, chief legal officer and secretary of Amerisourcebergen Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Amerisourcebergen

The firm reported the last year's revenue of 189.89 B. Reported Net Loss for the year was (3.41 B) with profit before taxes, overhead, and interest of 5.19 B.

Liabilities Breakdown

32.6 B
Current Liabilities
14 B
Long-Term Liabilities
Total Liabilities42.08 Billion
Current Liabilities32.55 Billion
Long-Term Liabilities13.97 Billion
Tax Liabilities1.47 Billion

Will AmerisourceBergen growth be trustworthy after the rise?

Current coefficient of variation is at 1081.04. AmerisourceBergen has relatively low volatility with skewness of 1.12 and kurtosis of 3.6. However, we advise all investors to independently investigate AmerisourceBergen to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Bottom Line On AmerisourceBergen

Whereas many other companies within the medical distribution industry are still a little expensive, even after the recent corrections, AmerisourceBergen may offer a potential longer-term growth to investors. In closing, as of the 4th of February 2021, we believe that at this point, AmerisourceBergen is fairly valued with very low odds of financial distress within the next 2 years. Our final buy-sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Amerisourcebergen Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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