Liabilities Breakdown
Tax Liabilities
1.9 B
Current Liabilities
1.5 B
Long-Term Liabilities
| Total Liabilities | 3.48 Billion | |
| Current Liabilities | 1.94 Billion | |
| Long-Term Liabilities | 1.53 Billion | |
| Tax Liabilities | 344.64 Million |
Should I hold on to my Citrix (NASDAQ:CTXS) position?
 | By Ellen Johnson | Macroaxis Story |
Citrix Systems is scheduled to announce its earnings today. The next earnings report is expected on the 27th of January 2021. Citrix Systems Invested Capital Average is relatively stable at the moment as compared to the past year. Citrix Systems reported last year Invested Capital Average of 909.77 Million. As of 10/22/2020, Market Capitalization is likely to grow to about 14.6 B, while Earnings before Tax are likely to drop slightly above 507.3 M. Although many aggressive traders are getting into technology space, Citrix Systems may or may not be your first choice. We will analyze why Citrix Systems investors may still consider a stake in the business.
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Reviewed by Raphi Shpitalnik
Citrix Systems currently holds 1.93 B in liabilities with Debt to Equity (D/E) ratio of 1.19, which is about average as compared to similar companies. The entity has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Citrix Systems financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Citrix Systems, including all of Citrix Systems'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 Citrix Systems assets, the company is considered highly leveraged. Understanding the composition and structure of overall Citrix Systems 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.
How important is Citrix Systems's Liquidity
Citrix Systems financial leverage refers to using borrowed capital as a funding source to finance Citrix Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Citrix Systems 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 Citrix Systems' 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 Citrix Systems' 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 Citrix Systems's total debt and its cash.
Details
The latest indifference towards the small price fluctuations of Citrix Systems could raise concerns from retail investors as the firm it trading at a share price of 143.87 on very low momentum in volume. The company executives did not add any value to Citrix Systems investors in September. However, most investors can still diversify their portfolios with Citrix Systems to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.09. The current volatility is consistent with the ongoing market swings in September 2020 as well as with Citrix Systems unsystematic, company-specific events.
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