Ally Financial Story

ALLY -- USA Stock

USD 41.84 0.86 2.10%

Macroaxis Story

Ally Financial is scheduled to announce its earnings today. The next earnings report is expected on the 19th of April 2021. The stock is in a buyout trend. Ally Financial Book Value per Share is fairly stable at the moment as compared to the past year. Ally Financial reported Book Value per Share of 34.14 in 2020. EBITDA Margin is likely to rise to 0.57 in 2021, whereas Net Income Per Employee is likely to drop slightly above 143.2 K in 2021. While some of us are becoming more enthusiastic about financial services space, let's break down Ally Financial in greater detail to make a better estimate of its debt utilization. We will inspect if it could be a much better year for Ally Financial shareholders.

Published over a month ago

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How much will Ally Financial owe in February?

Ally Financial currently holds 28.91 B in liabilities with Debt to Equity (D/E) ratio of 275.8, indicating Ally Financial may have difficulties to generate enough cash to satisfy its financial obligations. The entity has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations when due.

Ally Financial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Ally Financial, including all of Ally Financial'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 Ally Financial assets, the company is considered highly leveraged. Understanding the composition and structure of overall Ally Financial 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 Ally Financial Total Debt

Ally Financial liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Ally Financial 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 Ally Financial balance sheet include debt obligations and money owed to different Ally Financial vendors, workers, and loan providers. Below is the chart of Ally Financial main long-term debt accounts currently reported on its balance sheet.

You can use Ally Financial financial leverage analysis tool to get a better grip on understanding its financial position

How important is Ally Financial's Liquidity

Ally Financial financial leverage refers to using borrowed capital as a funding source to finance Ally Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ally Financial 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 Ally Financial'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 Ally Financial, but it might be worth checking our own buy vs. sell analysis

Payment of 6734 shares by Douglas Timmerman of Ally Financial subject to Rule 16b-3

Legal trades by Ally Financial 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:

Ally Financial insider trading alert for payment of common stock by Douglas Timmerman, President Auto Finance, on 8th of February 2021. This event was filed by Ally Financial Inc with SEC on 2021-02-08. Statement of changes in beneficial ownership - SEC Form 4 [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 Ally Financial Indicators

The firm reported the previous year's revenue of 5.67 B. Net Income was 780 M with profit before overhead, payroll, taxes, and interest of 6.38 B.

Can Ally Financial correct the current slide?

Standard deviation is down to 2.28. It may suggest a possible volatility slide. Ally Financial has relatively low volatility with skewness of 0.18 and kurtosis of -0.24. However, we advise all investors to independently investigate Ally Financial to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Ally Financial

While other entities within the credit services industry are still a little expensive, even after the recent corrections, Ally Financial may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor trade any shares of Ally Financial at this time. The Ally Financial risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ally Financial.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile

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 Gabriel Shpitalnik do not own shares of Ally Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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