Goldman Sachs Group reports 576.12
B of total liabilities with total debt to equity ratio (D/E) of 5.34, which implies that Goldman Sachs Group may not be able to produce enough cash to satisfy its debt commitments.
The company retains a Market Volatility (i.e., Beta) of 1.3542, which attests to a somewhat significant risk relative to the market. Let's try to break down what Goldman's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Goldman Sachs will likely underperform. Even though it is essential to pay attention to
Goldman Sachs Group current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy towards determining any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Goldman Sachs Group exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Goldman Sachs Group has an expected return of -0.21%. Please be advised to check out Goldman Sachs
downside variance, and the
relationship between the
sortino ratio and
accumulation distribution to decide if
Goldman Sachs Group performance from the past will be repeated at some point in the near future.
Goldman Sachs financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Goldman Sachs, including all of Goldman Sachs'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 Goldman Sachs assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Goldman Sachs 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 Goldman Total Liabilities
Goldman Sachs Group liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Goldman Sachs Group 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 Goldman Sachs balance sheet include debt obligations and money owed to different Goldman Sachs vendors, workers, and loan providers. Below is the chart of Goldman short long-term liabilities accounts currently reported on its balance sheet.
You can use Goldman Sachs Group
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Goldman Sachs's Liquidity
Goldman Sachs
financial leverage refers to using borrowed capital as a funding source to finance Goldman Sachs Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Goldman Sachs 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 Goldman Sachs' 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 Goldman Sachs' 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 Goldman Sachs's total debt and its cash.
Another Deeper Perspective
The entity generated the yearly revenue of 58.13
B. Reported Net Income was 21.67
B with gross profit of 35.97
B.
| 2019 | 2020 | 2021 | 2022 (projected) |
PPandE Turnover | 2.68 | 2.37 | 2.72 | 3.56 | Calculated Tax Rate | 20.0 | 24.2 | 27.83 | 32.55 |
Will Goldman Sachs continue to go crazy?
Goldman Sachs risk adjusted performance is up to 0.01. Goldman Sachs Group has relatively low volatility with skewness of 0.09 and kurtosis of -0.19. However, we advise all investors to independently investigate Goldman Sachs Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Goldman Sachs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Goldman Sachs' 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.
Goldman Sachs Implied Volatility
Goldman Sachs' implied volatility exposes the market's sentiment of Goldman Sachs Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Goldman Sachs' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Goldman Sachs stock will not fluctuate a lot when Goldman Sachs' options are near their expiration.
The Bottom Line
While other companies in the capital markets industry are either recovering or due for a correction, Goldman may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Goldman Sachs at this time. The Goldman Sachs Group 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 Goldman Sachs.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Goldman Sachs Group. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com