Bank of New York reports 65.35
B of total liabilities with total debt to equity ratio (D/E) of 0.57, which is normal for its line of buisiness. Debt can assist Bank of New York until it has trouble settling it off, either with new capital or with free cash flow. So, Bank of New York's 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 Bank of New York sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Bank of New York to invest in growth at high rates of return. When we think about Bank of New York's use of debt, we should always consider it together with cash and equity.
Volatility is a rate at which the price of Bank of New York or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bank of New York may increase or decrease. In other words, similar to Bank's
beta indicator, it measures the risk of Bank of New York and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bank of New York fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our
technical analysis page.
How important is Bank of New York's Liquidity
Bank of New York
financial leverage refers to using borrowed capital as a funding source to finance Bank of New ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank of New York 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 Bank of New York'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 Bank of New York'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 Bank of New York's total debt and its cash.
Bank of New York Gross Profit
Bank of New York Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bank of New York previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bank of New York Gross Profit growth over the last 10 years. Please check Bank of New York's
gross profit and other
fundamental indicators for more details.
Bank of New York Volatility Drivers
Bank of New York unsystematic risk is unique to Bank of New York and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Bank of New York you can also buy
Visa Class A. You can also mitigate this risk by investing in the financials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Bank of New York important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Bank of New York income statement and balance sheet. Here are more
details about Bank volatility.
Click cells to compare fundamentals
A Deeper Perspective On Bank of New York
The entity generated the yearly revenue of 16.08
B. Reported Net Income was 3.39
B with gross profit of 16.16
B.
How will Bank of New York traders react to the next plunge?
The standard deviation is down to 1.85 as of today. Bank Of New exhibits very low volatility with skewness of 0.28 and kurtosis of -0.49. However, we advise investors to further study Bank Of New technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bank of New York's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bank of New York's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Bank of New York Implied Volatility
Bank of New York's implied volatility exposes the market's sentiment of Bank Of New stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bank of New York's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bank of New York stock will not fluctuate a lot when Bank of New York's options are near their expiration.
Our Final Takeaway
Although many other companies in the asset management industry are either recovering or due for a correction, Bank of New York may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 15th of July 2022, we believe Bank of New York is currently
undervalued. It almost mirrors the market and projects
average chance of distress in the next two years. Our current 90 days buy-hold-sell advice on the firm is
Buy.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Bank of New. Please refer to our
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