| 2018 | 2019 | 2020 | 2021 (projected) | Net Income | 168.64 M | 169.06 M | 194.42 M | 164.11 M | Gross Profit | 558.28 M | 581.36 M | 668.57 M | 583.44 M |
Will Community Bank (NYSE:CBU) debt increase in February
 | By Raphi Shpitalnik | Macroaxis Story |
Community Bank System is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 25th of January 2021. Community Bank Return on Average Equity is comparatively stable at the moment as compared to the past year. Community Bank reported Return on Average Equity of 0.08 in 2020. Return on Sales is likely to gain to 0.42 in 2021, whereas Average Assets are likely to drop slightly above 11.5 B in 2021. As many passive investors are finally getting excited about financial services space, Community Bank System could be a good starting point.
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Reviewed by Michael Smolkin
Community Bank System has 380.7 M in debt with debt to equity (D/E) ratio of 0.35, which is OK given its current industry classification. Macroaxis provides unbiased investment recommendation on Community Bank System that should be used to complement current analysts and expert consensus on Community Bank System. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. Community Bank financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Community Bank, including all of Community Bank'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 Community Bank assets, the company is considered highly leveraged. Understanding the composition and structure of overall Community Bank 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 Community Total Liabilities
Community Bank System liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Community Bank System 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 Community Bank balance sheet include debt obligations and money owed to different Community Bank vendors, workers, and loan providers. Below is the chart of Community short long-term liabilities accounts currently reported on its balance sheet. You can use Community Bank System financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Community Bank's Liquidity
Community Bank financial leverage refers to using borrowed capital as a funding source to finance Community Bank System ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Community Bank 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 Community Bank'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 Community Bank'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 Community Bank's total debt and its cash.
Breaking down Community Bank Further
The entity reported the last year's revenue of 575.88 M. Total Income to common stockholders was 160.57 M with profit before taxes, overhead, and interest of 581.36 M.
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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 Community Bank System. Please refer to our Terms of Use for any information regarding our disclosure principles.