| 2018 | 2019 | 2020 | 2021 (projected) | Total Assets | 99.21 B | 116.26 B | 104.64 B | 112.9 B | Long Term Debt | 1.67 B | 1.28 B | 1.15 B | 1.33 B |
Will current FIRST REPUBLIC (NYSE:FRC) debt levels change in two-three weeks?
 | By Ellen Johnson | Macroaxis Story |
FIRST REPUBLIC BANK is scheduled to announce its earnings today. The next earnings report is expected on the 13th of April 2021. FIRST REPUBLIC Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 20.59. The current year PPandE Turnover is expected to grow to 13.69, whereas Net Income Per Employee is forecasted to decline to about 172 K. While some baby boomers are getting worried about financial services space, it is reasonable to go over FIRST REPUBLIC BANK as an investment alternative.
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Reviewed by Michael Smolkin
This firm has 16.28 B in debt with debt to equity (D/E) ratio of 0.09, which may show that the entity is not taking advantage of profits from borrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. FIRST REPUBLIC has an asset utilization ratio of 6.07 percent. This suggests that the company is making $0.0607 for each dollar of assets. An increasing asset utilization means that FIRST REPUBLIC BANK is more efficient with each dollar of assets it utilizes for everyday operations. FIRST REP financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of FIRST REP, including all of FIRST REP'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 FIRST REP assets, the company is considered highly leveraged. Understanding the composition and structure of overall FIRST REP 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.
Watch out for price decline
Please consider monitoring FIRST REP on a daily basis if you are holding a position in it. FIRST REP is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as FIRST REP stock to be traded above the $1 level to remain listed. If FIRST REP stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is FIRST REP's Liquidity
FIRST REP financial leverage refers to using borrowed capital as a funding source to finance FIRST REP BK ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FIRST REP 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 FIRST REP'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 FIRST REP'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 FIRST REP's total debt and its cash.
A Deeper Perspective
The company reported the last year's revenue of 3.58 B. Total Income to common stockholders was 961.56 M with profit before taxes, overhead, and interest of 3.28 B.
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