Harley Story

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HOG -- USA Stock  

USD 23.68  1.56  6.18%

Harley Davidson is scheduled to announce its earnings today. The next earnings report is expected on the 27th of October 2020. Harley Davidson Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 10.61 Billion. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 794.1 M, whereas Long Term Debt to Equity is forecasted to decline to 2.37. While some millenniums are indifferent towards consumer cyclical space, it makes sense to digest Harley Davidson as a unique investment alternative.
Published over a month ago
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You think Harley Davidson (NYSE:HOG) debt is an issue for shareholders?
This firm has 8.21 B in debt with debt to equity (D/E) ratio of 4.85, demonstrating that the firm may be unable to create cash to meet all of its financial commitments. On a scale of 0 to 100, Harley Davidson holds a performance score of 6. The company retains a Market Volatility (i.e. Beta) of 1.981, which attests to a somewhat significant risk relative to the market. Let's try to break down what Harley'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, Harley Davidson will likely underperform. Although it is vital to follow Harley Davidson current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Harley Davidson technical indicators, you can presently evaluate if the expected return of 0.4% will be sustainable into the future. Please utilizes Harley Davidson semi variance, and the relationship between the maximum drawdown and accumulation distribution to make a quick decision on whether Harley Davidson current trending patterns will revert.
Harley Davidson financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Harley Davidson, including all of Harley Davidson'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 Harley Davidson assets, the company is considered highly leveraged. Understanding the composition and structure of overall Harley Davidson 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 Harley Total Liabilities

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

How important is Harley Davidson's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Harley Davidson, but it might be worth checking our own buy vs. sell analysis

What is driving Harley Davidson Investor Appetite?

The company reported the last year's revenue of 5.28 B. Total Income to common stockholders was 365.38 M with profit before taxes, overhead, and interest of 1.62 B.

Asset Breakdown

6.6 B
Assets Non Current
3.9 B
Current Assets
Total Assets11.19 Billion
Current Assets3.95 Billion
Assets Non Current6.6 Billion
Goodwill58.01 Million
Tax Assets142.51 Million

Harley technical analysis indicates possible collapse

The market risk adjusted performance is down to 0.41 as of today. Harley Davidson shows above-average downside volatility for the selected time horizon. We advise investors to inspect Harley Davidson further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Harley Davidson future alpha.

Our Final Takeaway

Although some companies under the recreational vehicles industry are still a bit expensive, Harley Davidson may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe that the current risk-reward utility 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 Harley Davidson.

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 Vlad Skutelnik do not own shares of Harley Davidson. Please refer to our Terms of Use for any information regarding our disclosure principles.

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