Asset Breakdown
323.6 M
Assets Non Current
Goodwill
Tax Assets
613.2 M
Current Assets
| Total Assets | 936.86 Million | |
| Current Assets | 613.22 Million | |
| Assets Non Current | 323.65 Million | |
| Goodwill | 58.53 Million | |
| Tax Assets | 49.54 Million |
Continue to hold Astec (NASDAQ:ASTE) based on its current debt obligations?
 | By Ellen Johnson | Macroaxis Story |
Astec Inds is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 1st of March 2021. Astec Inds Revenue Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 272,284. The current year Average Assets is expected to grow to about 959.4 M, whereas Interest Coverage is forecasted to decline to 115.25. As many passive investors are finally getting excited about industrials space, Astec Inds could be a good starting point. Let's discuss the possibilities of Astec Inds maintaining its debt level in March.
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Reviewed by Gabriel Shpitalnik
The company currently holds 7.49 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest the firm is not taking enough advantage from borrowing. Astec Inds has a current ratio of 3.24, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of 1.23 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 3.46 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.03. Astec Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Astec Industries, including all of Astec Industries'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 Astec Industries assets, the company is considered highly leveraged. Understanding the composition and structure of overall Astec Industries 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 Astec Total Liabilities
Astec Industries liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Astec Industries 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 Astec Industries balance sheet include debt obligations and money owed to different Astec Industries vendors, workers, and loan providers. Below is the chart of Astec short long-term liabilities accounts currently reported on its balance sheet. You can use Astec Industries financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Astec Industries's Liquidity
Astec Industries financial leverage refers to using borrowed capital as a funding source to finance Astec Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Astec Industries 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 Astec Industries' 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 Astec Industries' 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 Astec Industries's total debt and its cash.
Detailed Perspective On Astec Industries
The entity reported the previous year's revenue of 1.07 B. Net Income was 13.19 M with profit before overhead, payroll, taxes, and interest of 239.41 M.
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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 Ellen Johnson do not own shares of Astec Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.