Asset Breakdown
6 B
Assets Non Current
4.8 B
Goodwill
1.5 B
Current Assets
| Total Assets | 7.78 Billion | |
| Current Assets | 1.45 Billion | |
| Assets Non Current | 5.98 Billion | |
| Goodwill | 4.78 Billion |
Continue to hold Affiliated (NYSE:AMG) based on its current debt obligations?
 | By Ellen Johnson | Macroaxis Story |
Affiliated Managers is scheduled to announce its earnings tomorrow. Affiliated Managers Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 8.17 Billion. The current year Average Equity is expected to grow to about 3 B, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 909.9 M. As many of us are excited about financial services space, it is fair to digest Affiliated Managers Group as a unique alternative.
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Reviewed by Gabriel Shpitalnik
The entity has 2.58 B in debt with debt to equity (D/E) ratio of 0.61, which is OK given its current industry classification. Debt can assist Affiliated Managers until it has trouble settling it off, either with new capital or with free cash flow. So, Affiliated Managers' 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 Affiliated Managers sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Affiliated to invest in growth at high rates of return. When we think about Affiliated Managers' use of debt, we should always consider it together with cash and equity.Affiliated Managers financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Affiliated Managers, including all of Affiliated Managers'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 Affiliated Managers assets, the company is considered highly leveraged. Understanding the composition and structure of overall Affiliated Managers 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 Affiliated Total Liabilities
Affiliated Managers liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Affiliated Managers 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 Affiliated Managers balance sheet include debt obligations and money owed to different Affiliated Managers vendors, workers, and loan providers. Below is the chart of Affiliated short long-term liabilities accounts currently reported on its balance sheet. You can use Affiliated Managers Group financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Affiliated Managers's Liquidity
Affiliated Managers financial leverage refers to using borrowed capital as a funding source to finance Affiliated Managers Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Affiliated Managers 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 Affiliated Managers' 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 Affiliated Managers' 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 Affiliated Managers's total debt and its cash.
Breaking it down
The firm reported the last year's revenue of 2.46 B. Total Income to common stockholders was 561.8 M with profit before taxes, overhead, and interest of 1.37 B.
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