This firm has 641.46
M in debt. The company has a current ratio of 0.78, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
On a scale of 0 to 100, Bentley Systems holds a
performance score of 9. The firm shows a Beta (market volatility) of 0.2619, which signifies not very significant fluctuations relative to the market. Let's try to break down what Bentley's beta means in this case. As returns on the market increase, Bentley Systems returns are expected to increase less than the market. However, during the bear market, the loss on holding Bentley Systems will be expected to be smaller as well. Although it is vital to follow
Bentley Systems Inco historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Bentley Systems Inco technical indicators, you can presently evaluate if the expected return of 0.48% will be sustainable into the future. Please makes use of Bentley Systems Inco
maximum drawdown, as well as the
relationship between the skewness and
day typical price to make a quick decision on whether Bentley Systems
price patterns will revert.
Bentley SystemsInc financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bentley SystemsInc, including all of Bentley SystemsInc'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 Bentley SystemsInc assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Bentley SystemsInc 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 Bentley Total Debt
Bentley SystemsInc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bentley SystemsInc 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 Bentley SystemsInc balance sheet include debt obligations and money owed to different Bentley SystemsInc vendors, workers, and loan providers. Below is the chart of Bentley main long-term debt accounts currently reported on its balance sheet.
You can use Bentley SystemsInc
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Bentley SystemsInc's Liquidity
Bentley SystemsInc
financial leverage refers to using borrowed capital as a funding source to finance Bentley SystemsInc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bentley SystemsInc 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 Bentley SystemsInc'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 Bentley SystemsInc'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 Bentley SystemsInc's total debt and its cash.
Another Deeper Perspective
The current price rise of Bentley Systems Inco could raise concerns from investors as the firm it trading at a share price of
44.50 on
564,700 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in
April. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.55. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Bentley Systems partners.
Liabilities Breakdown
360.2 M
Current Liabilities
254.7 M
Long-Term Liabilities
| Total Liabilities | 614.97 Million |
| Current Liabilities | 360.23 Million |
| Long-Term Liabilities | 254.74 Million |
| Tax Liabilities | 18.26 Million |
Some Bentley technical indicators suggest bounce back
Current coefficient of variation is at 823.29. Bentley Systems Incorporated shows above-average downside volatility for the selected time horizon. We advise investors to inspect Bentley Systems Incorporated further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Bentley Systems future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bentley Systems' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bentley Systems' 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.
Our Final Takeaway
While many other companies under the software—application industry are still a bit expensive, Bentley Systems may offer a potential longer-term growth to investors. Taking everything into account, as of the 2nd of March 2021, we believe Bentley Systems is currently
overvalued. It slowly supersedes the market and projects
low probability of financial unrest in the next two years. Our ongoing 30 days buy-hold-sell recommendation on the company is
Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Bentley SystemsInc. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com