General Story

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GFN -- USA Stock  

USD 10.42  1.13  9.78%

General Finance is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 8th of February 2021. General Finance Cash and Equivalents Turnover is quite stable at the moment as compared to the past year. The company's current value of Cash and Equivalents Turnover is estimated at 36.41. Net Current Assets as percentage of Total Assets is expected to rise to 2.89 this year, although the value of Average Assets will most likely fall to about 807.4 M. While some baby boomers are getting worried about industrials space, it is reasonable to outline General Finance as an investment alternative. What exactly are General Finance shareholders getting in March?
Published over two weeks ago
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How much will General Finance owe in March?
General Finance has 456.49 M in debt with debt to equity (D/E) ratio of 2.53, meaning that General Finance heavily relies on borrowing funds for operations. The entity has a current ratio of 1.2, demonstrating that it is not liquid enough and may have problems paying out its financial commitments when the payables are due.
General Finance financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of General Finance, including all of General Finance'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 General Finance assets, the company is considered highly leveraged. Understanding the composition and structure of overall General Finance 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 General Total Debt

General Finance Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. General Finance Corp 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 General Finance balance sheet include debt obligations and money owed to different General Finance vendors, workers, and loan providers. Below is the chart of General main long-term debt accounts currently reported on its balance sheet.
You can use General Finance Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is General Finance's Liquidity

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

Acquisition by Neil Littlewood of 15077 shares of General Finance subject to Rule 16b-3

Legal trades by General Finance insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
General insider trading alert for grant of restricted share unit by Neil Littlewood, CEO-GFN Asia Pacific Holdings, on 10th of February 2021. This event was filed by General Finance Corp with SEC on 2021-02-10. Statement of changes in beneficial ownership - SEC Form 4. Neil Littlewood currently serves as ceo and managing director of royal wolf holdings ltd of General Finance Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

The firm reported the last year's revenue of 348.94 M. Total Income to common stockholders was 2.42 M with profit before taxes, overhead, and interest of 176.11 M.

Liabilities Breakdown

45.8 M
Tax Liabilities
58.2 M
Current Liabilities
184.6 M
Long-Term Liabilities
Total Liabilities580.53 Million
Current Liabilities58.18 Million
Long-Term Liabilities184.56 Million
Tax Liabilities45.75 Million

Can General Finance build up on the latest rise?

Latest coefficient of variation is at -5990.31. General Finance exhibits very low volatility with skewness of -1.01 and kurtosis of 6.12. However, we advise investors to further study General Finance technical indicators to make sure all market info is available and is reliable.

Our Conclusion on General Finance

Whereas many of the other players under the rental & leasing services industry are still a bit expensive, General Finance may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current General valuation and our trade advice on General Finance is due to the recent market swings and your selection of investing horizon. 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 General Finance.

About Contributor

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 General Finance Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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