How much will Commscope Holding owe in December?

COMM Stock

USD 8.23 0.20 2.37%

Macroaxis Story

Commscope Holding is scheduled to announce its earnings today. The stock continues to experience an active downward rally. Commscope Holding Working Capital is relatively stable at the moment as compared to the past year. The company's current value of Working Capital is estimated at 1.42 Billion. Interest Coverage is expected to hike to 0.10 this year, although the value of Revenue Per Employee will most likely fall to nearly 255.5 K. As many millenniums are trying to avoid technology space, it makes sense to summarize Commscope Holding a little further and try to understand its current market patterns. Let's summarize the possibilities of Commscope Holding maintaining its debt level in December.

Published over three months ago

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The company currently holds 9.69 B in liabilities. Commscope Holding has a current ratio of 1.61, which is within standard range for the sector. Debt can assist Commscope Holding until it has trouble settling it off, either with new capital or with free cash flow. So, Commscope Holding's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Commscope Holding sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Commscope to invest in growth at high rates of return. When we think about Commscope Holding's use of debt, we should always consider it together with cash and equity.

How much will Commscope Holding owe in December?

CommScope Holding financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of CommScope Holding, including all of CommScope Holding'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 CommScope Holding assets, the company is considered highly leveraged. Understanding the composition and structure of overall CommScope Holding 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 CommScope Total Liabilities

CommScope Holding liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. CommScope Holding 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 CommScope Holding balance sheet include debt obligations and money owed to different CommScope Holding vendors, workers, and loan providers. Below is the chart of CommScope short long-term liabilities accounts currently reported on its balance sheet.

You can use CommScope Holding Co financial leverage analysis tool to get a better grip on understanding its financial position

How important is CommScope Holding's Liquidity

CommScope Holding financial leverage refers to using borrowed capital as a funding source to finance CommScope Holding Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CommScope Holding 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 CommScope Holding's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for CommScope Holding, but it might be worth checking our own buy vs. sell analysis

Breaking it down

The new hike in Commscope Holding short term price appreciation could raise concerns from stakeholders as the firm is trading at a share price of 11.35 on 304,752 in volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.46. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Commscope Holding partners.

Liabilities Breakdown

2.4 B

Current Liabilities

8.7 B

Long-Term Liabilities

	Total Liabilities	13.34 Billion
	Current Liabilities	2.35 Billion
	Long-Term Liabilities	8.66 Billion
	Tax Liabilities	220.48 Million

Commscope Holding bad reportages are not so bad

The semi variance is down to 9.55 as of today. Commscope Holding shows above-average downside volatility for the selected time horizon. We advise investors to inspect Commscope Holding further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Commscope Holding future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Commscope Holding's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Commscope Holding's 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 Takeaway on Commscope Holding Investment

While other companies under the communication equipment industry are still a bit expensive, Commscope Holding may offer a potential longer-term growth to stakeholders. With an optimistic outlook on your 90 days horizon, it may be a good time to pick up new shares of Commscope or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Commscope Holding.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of CommScope Holding Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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