Bank of Nova Scotia has 219.48
B in debt with debt to equity (D/E) ratio of 14.91, demonstrating that Bank of Nova Scotia may be unable to create cash to meet all of its financial commitments.
The firm shows a Beta (market volatility) of 0.8438, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Bank of Nova Scotia's beta means in this case. As returns on the market increase, Bank of Nova Scotia returns are expected to increase less than the market. However, during the bear market, the loss on holding Bank of Nova Scotia will be expected to be smaller as well. Even though it is essential to pay attention to
Bank of Nova Scotia 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. Bank Of Nova exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Bank of Nova Scotia has an expected return of -0.11%. Please be advised to confirm Bank of Nova Scotia
semi variance, and the
relationship between the
treynor ratio and
daily balance of power to decide if
Bank of Nova Scotia performance from the past will be repeated at some point in the near future.
Bank of Nova Scotia financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bank of Nova Scotia, including all of Bank of Nova Scotia'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 Bank of Nova Scotia assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Bank of Nova Scotia 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 Bank Total Liabilities
Bank of Nova Scotia liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bank of Nova Scotia 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 Bank of Nova Scotia balance sheet include debt obligations and money owed to different Bank of Nova Scotia vendors, workers, and loan providers. Below is the chart of Bank short long-term liabilities accounts currently reported on its balance sheet.
You can use Bank of Nova
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Bank of Nova Scotia's Liquidity
Bank of Nova Scotia
financial leverage refers to using borrowed capital as a funding source to finance Bank of Nova ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank of Nova Scotia 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 Nova Scotia'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 Nova Scotia'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 Nova Scotia's total debt and its cash.
Breaking it down a bit more
The entity reported the last year's revenue of 30.45
B. Total Income to common stockholders was 10.04
B with profit before taxes, overhead, and interest of 29.43
B.
Asset Breakdown
| Total Assets | 1.24 Trillion |
| Goodwill | 17.55 Billion |
| Tax Assets | 1.79 Billion |
Will Bank of Nova Scotia continue to go crazy?
Maximum drawdown is down to 6.96. It may connote a possible volatility fall.
As of the 23rd of August, Bank of Nova Scotia shows the Downside Deviation of 1.56,
risk adjusted performance of 0.0124, and Mean Deviation of 1.13. Bank of Nova Scotia
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate nineteen
technical drivers for Bank Of Nova, which can be compared to its rivals. Please confirm
Bank of Nova Scotia coefficient of variation,
treynor ratio, as well as the
relationship between the Treynor Ratio and
semi variance to decide if Bank of Nova Scotia is priced correctly, providing market reflects its regular price of 59.09 per share. Given that Bank of Nova Scotia has
jensen alpha of
(0.06), we suggest you to validate Bank Of Nova's prevailing market performance to make sure the company can sustain itself at a future point.
The Bottom Line
While other entities in the banks—diversified industry are either recovering or due for a correction, Bank of Nova Scotia may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 23rd of August 2022, our up-to-date 90 days buy-sell recommendation on the enterprise is
Buy. We believe Bank of Nova Scotia is currently
undervalued with
average odds of financial distress for the next two years.
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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 Nova. Please refer to our
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