This firm currently holds 153.24
M in liabilities with Debt to Equity (D/E) ratio of 0.16, which may suggest Guaranty Bancshares is not taking enough advantage from borrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Guaranty Bancshares has an asset utilization ratio of 6.0 percent. This suggests that the company is making $0.06 for each dollar of assets. An increasing asset utilization means that Guaranty Bancshares is more efficient with each dollar of assets it utilizes for everyday operations.
Guaranty Bancshares financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Guaranty Bancshares, including all of Guaranty Bancshares'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 Guaranty Bancshares assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Guaranty Bancshares 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 Guaranty Total Debt
Guaranty Bancshares liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Guaranty Bancshares 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 Guaranty Bancshares balance sheet include debt obligations and money owed to different Guaranty Bancshares vendors, workers, and loan providers. Below is the chart of Guaranty main long-term debt accounts currently reported on its balance sheet.
You can use Guaranty Bancshares
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Guaranty Bancshares's Liquidity
Guaranty Bancshares
financial leverage refers to using borrowed capital as a funding source to finance Guaranty Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Guaranty Bancshares 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 Guaranty Bancshares' 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 Guaranty Bancshares' 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 Guaranty Bancshares's total debt and its cash.
Detailed Perspective On Guaranty Bancshares
The company reported the previous year's revenue of 89.97
M. Net Income was 22.25
M with profit before overhead, payroll, taxes, and interest of 94.58
M.
Asset Breakdown
| Total Assets | 2.38 Billion |
| Goodwill | 35.03 Million |
| Tax Assets | 2.74 Million |
Will Guaranty Bancshares current rise continue?
The value at risk is down to -3.03 as of today. Guaranty Bancshares currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.15. However, we do advice investors to further question Guaranty Bancshares expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Final Take On Guaranty Bancshares
While many other companies within the banks—regional industry are still a little expensive, even after the recent corrections, Guaranty Bancshares may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take in nor short any shares of Guaranty Bancshares at this time. The Guaranty Bancshares risk-reward trade off is not appealing enough to do any trading. 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 Guaranty Bancshares.
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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 Guaranty Bancshares. Please refer to our
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