Liabilities Breakdown
3.6 B
Current Liabilities
4.4 B
Long-Term Liabilities
| Total Liabilities | 9.17 Billion | |
| Current Liabilities | 3.61 Billion | |
| Long-Term Liabilities | 4.38 Billion |
Will Adient (NYSE:ADNT) sophisticated investors stop to exit in December?
 | By Raphi Shpitalnik | Macroaxis Story |
Adient Plc is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 30th of November 2020. The stock is in a buyout trend. Adient Plc Current Ratio is comparatively stable at the moment as compared to the past year. Adient Plc reported Current Ratio of 1.23 in 2019. Debt to Equity Ratio is likely to gain to 5.47 in 2020, whereas Invested Capital is likely to drop slightly above 7.8 B in 2020. Although many aggressive traders are getting into consumer cyclical space, Adient Plc may or may not be your first choice. We will evaluate why recent Adient Plc price moves suggest a bounce in December.
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Reviewed by Michael Smolkin
The company currently holds 4.85 B in liabilities with Debt to Equity (D/E) ratio of 3.01, implying the entity greatly relies on financing operations through barrowing. Adient Plc has a current ratio of 1.1, suggesting that it is in a questionable position to pay out its financial obligations when due. The company has Profit Margin (PM) of (3.96) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.28) %, which suggests for every $100 dollars of sales, it generated a net operating loss of 0.0. Adient PLC financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Adient PLC, including all of Adient PLC'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 Adient PLC assets, the company is considered highly leveraged. Understanding the composition and structure of overall Adient PLC 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 Adient Total Liabilities
Adient PLC liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Adient PLC 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 Adient PLC balance sheet include debt obligations and money owed to different Adient PLC vendors, workers, and loan providers. Below is the chart of Adient short long-term liabilities accounts currently reported on its balance sheet. You can use Adient PLC financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Adient PLC's Liquidity
Adient PLC financial leverage refers to using borrowed capital as a funding source to finance Adient PLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Adient PLC 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. Financial leverage can amplify the potential profits to Adient PLC'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 Adient PLC'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). Please check the breakdown between Adient PLC's total debt and its cash.
Breaking it down a bit more
The newest price gain of Adient Plc could raise concerns from private investors as the firm it trading at a share price of 31.98 on 807,200 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.74. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Adient Plc partners.
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