Bassett Story

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BSET -- USA Stock  

USD 21.39  1.34  5.90%

Bassett Furniture is scheduled to announce its earnings today. The next earnings report is expected on the 28th of January 2021. The stock is currently undergoing an active upward rally. Bassett Furniture Long Term Debt to Equity is comparatively stable at the moment as compared to the past year. Bassett Furniture reported Long Term Debt to Equity of 0.018 in 2019. Calculated Tax Rate is likely to gain to 40.47 in 2020, whereas Earnings before Tax are likely to drop (2.1 M) in 2020. While some millenniums are indifferent towards consumer cyclical space, it makes sense to review Bassett Furniture Industries as a unique investment alternative. We will analyze why Bassett Furniture investors may still consider a stake in the business.
Published over three months ago
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Will Bassett Furniture (NASDAQ:BSET) debt increase in November
Bassett Furniture currently holds 156.03 M in liabilities with Debt to Equity (D/E) ratio of 1.02, which is about average as compared to similar companies. The entity has a current ratio of 1.32, which is within standard range for the sector. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bassett Furniture has an asset utilization ratio of 143.38 percent. This implies that the company is making $1.43 for each dollar of assets. An increasing asset utilization means that Bassett Furniture Industries is more efficient with each dollar of assets it utilizes for everyday operations.
Bassett Furniture financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bassett Furniture, including all of Bassett Furniture'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 Bassett Furniture assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bassett Furniture 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 Bassett Total Liabilities

Bassett Furniture liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bassett Furniture 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 Bassett Furniture balance sheet include debt obligations and money owed to different Bassett Furniture vendors, workers, and loan providers. Below is the chart of Bassett short long-term liabilities accounts currently reported on its balance sheet.
You can use Bassett Furniture Industries financial leverage analysis tool to get a better grip on understanding its financial position

How important is Bassett Furniture's Liquidity

Bassett Furniture financial leverage refers to using borrowed capital as a funding source to finance Bassett Furniture Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bassett Furniture 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. Please check the breakdown between Bassett Furniture's total debt and its cash.

What is driving Bassett Furniture Investor Appetite?

The firm reported the previous year's revenue of 398.98 M. Net Loss for the year was (22.12 M) with profit before overhead, payroll, taxes, and interest of 273.23 M.

Liabilities Breakdown

26.1 M
Deposit Liabilities
81.7 M
Current Liabilities
22.1 M
Long-Term Liabilities
Deposit Liabilities26.06 Million
Total Liabilities111.05 Million
Current Liabilities81.74 Million
Long-Term Liabilities22.14 Million

Our perspective of the newest Bassett Furniture gain

The total risk alpha is down to 0.61 as of today. Bassett Furniture Industries shows above-average downside volatility for the selected time horizon. We advise investors to inspect Bassett Furniture Industries further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Bassett Furniture future alpha.

Our Bottom Line On Bassett Furniture

Whereas some other entities within the furnishings, fixtures & appliances industry are still a little expensive, even after the recent corrections, Bassett Furniture may offer a potential longer-term growth to private investors. While some before the next earnings call oriented private investors may not share our view, we believe it may not be a good time to take in new shares of Bassett.

About Contributor

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 Raphi Shpitalnik do not own shares of Bassett Furniture Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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