| 2018 | 2019 | 2020 (projected) | Book Value per Share | 25.13 | 25.68 | 26.88 | Asset Turnover | 0.018 | 0.017 | 0.0176 |
Should I short my Banco (NYSE:BLX) position?
 | By Raphi Shpitalnik | Macroaxis Story |
Banco Latinoamericano is scheduled to announce its earnings today. Banco Latinoamericano Book Value per Share is fairly stable at the moment as compared to the past year. Banco Latinoamericano reported Book Value per Share of 25.68 in 2019. Enterprise Value over EBIT is likely to grow to 48.21 in 2020, whereas Free Cash Flow is likely to drop (198.3 M) in 2020. While many traders are getting carried away by overanalyzing financial services space, it is reasonable to break down Banco Latinoamericano De as an investment alternative. We will evaluate why recent Banco Latinoamericano price moves suggest a bounce in August.
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Reviewed by Rifka Kats
The company has 3.24 B in debt with debt to equity (D/E) ratio of 7.53, demonstrating that Banco Latinoamericano may be unable to create cash to meet all of its financial commitments. The firm shows a Beta (market volatility) of 1.509, which signifies a somewhat significant risk relative to the market. Let's try to break down what Banco's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Banco Latinoamericano will likely underperform. Even though it is essential to pay attention to Banco Latinoamericano historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Banco Latinoamericano De exposes twenty-one different technical indicators, which can help you to evaluate its performance. Banco Latinoamericano has an expected return of -0.0215%. Please be advised to confirm Banco Latinoamericano coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Banco Latinoamericano stock performance from the past will be repeated at some point in the near future. Foreign Trade financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Foreign Trade, including all of Foreign Trade'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 Foreign Trade assets, the company is considered highly leveraged. Understanding the composition and structure of overall Foreign Trade 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 Foreign Total Debt
Foreign Trade Bank liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Foreign Trade Bank 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 Foreign Trade balance sheet include debt obligations and money owed to different Foreign Trade vendors, workers, and loan providers. Below is the chart of Foreign main long-term debt accounts currently reported on its balance sheet. You can use Foreign Trade Bank financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Foreign Trade's Liquidity
Foreign Trade financial leverage refers to using borrowed capital as a funding source to finance Foreign Trade Bank ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Foreign Trade 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 Foreign Trade'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 Foreign Trade'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 Foreign Trade's total debt and its cash.
An Additional Perspective On Foreign Trade Bank
The small decline in market price for the last few months could raise concerns from investors as the firm closed today at a share price of 10.71 on very low momentum in volume. The company directors and management did not add much value to Banco Latinoamericano investors in June. However, diversifying your holdings with Banco Latinoamericano De or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.34. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Banco Latinoamericano partners.
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