The company currently holds 596.08
M in liabilities with Debt to Equity (D/E) ratio of 2.82, implying Manchester United greatly relies on financing operations through barrowing.
Our investment recommendation tool can cross-verify current
analyst consensus on Manchester United and to analyze the entity potential to grow in the current economic cycle.
Manchester United financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Manchester United, including all of Manchester United'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 Manchester United assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Manchester United 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 Manchester Total Liabilities
Manchester United liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Manchester United 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 Manchester United balance sheet include debt obligations and money owed to different Manchester United vendors, workers, and loan providers. Below is the chart of Manchester short long-term liabilities accounts currently reported on its balance sheet.
You can use Manchester United
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Manchester United's Liquidity
Manchester United
financial leverage refers to using borrowed capital as a funding source to finance Manchester United ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Manchester United 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 Manchester United'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 Manchester United'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 Manchester United's total debt and its cash.
Breaking it down a bit more
Manchester United reported the previous year's revenue of 558.76
M. Net Loss for the year was (152.33
M) with profit before overhead, payroll, taxes, and interest of 455.69
M.
Asset Breakdown
| Total Assets | 1.53 Billion |
| Current Assets | 287.96 Million |
| Assets Non Current | 1.24 Billion |
| Goodwill | 852.82 Million |
| Tax Assets | 1.02 Million |
Will Manchester United newest gain continue?
Standard deviation is down to 2.48. It may call for a possible volatility drop. Manchester United exhibits very low volatility with skewness of 1.88 and kurtosis of 7.77. However, we advise investors to further study Manchester United technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Manchester United's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Manchester United's 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.
Manchester United Implied Volatility
Our Takeaway on Manchester United Investment
When is the right time to buy or sell Manchester United? Buying stocks such as Manchester United isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
In closing, as of the 13th of August 2022, our research shows that Manchester United is a rather not too volatile investment opportunity with a
below average probability of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be
undervalued. Our up-to-date 90 days buy vs. sell advice on the firm is
Strong Hold.
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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 Manchester United. Please refer to our
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