This firm currently holds 86.39
M in liabilities with Debt to Equity (D/E) ratio of 0.08, which may suggest Marketaxess Holdings is not taking enough advantage from borrowing. The company has a current ratio of 10.04, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Marketaxess Holdings until it has trouble settling it off, either with new capital or with free cash flow. So, Marketaxess Holdings' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Marketaxess Holdings sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Marketaxess to invest in growth at high rates of return. When we think about Marketaxess Holdings' use of debt, we should always consider it together with cash and equity.
MarketAxess Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of MarketAxess Holdings, including all of MarketAxess Holdings'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 MarketAxess Holdings assets, the company is considered highly leveraged. Understanding the
composition and structure of overall MarketAxess Holdings 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 MarketAxess Total Debt
MarketAxess Holdings liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. MarketAxess Holdings 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 MarketAxess Holdings balance sheet include debt obligations and money owed to different MarketAxess Holdings vendors, workers, and loan providers. Below is the chart of MarketAxess main long-term debt accounts currently reported on its balance sheet.
You can use MarketAxess Holdings
financial leverage analysis tool to get a better grip on understanding its financial position
How important is MarketAxess Holdings's Liquidity
MarketAxess Holdings
financial leverage refers to using borrowed capital as a funding source to finance MarketAxess Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. MarketAxess Holdings 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 MarketAxess Holdings' 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 MarketAxess Holdings' 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 MarketAxess Holdings's total debt and its cash.
Detailed Perspective On MarketAxess Holdings
Marketaxess Holdings reported the previous year's revenue of 689.54
M. Net Income was 242.2
M with profit before overhead, payroll, taxes, and interest of 485.56
M.
Liabilities Breakdown
432.4 M
Current Liabilities
| Total Liabilities | 527.76 Million |
| Current Liabilities | 432.35 Million |
| Tax Liabilities | 43.65 Million |
Will Marketaxess Holdings growth be rational after the rise?
Current kurtosis is at 0.12. Marketaxess Holdings currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.17. However, we advise investors to further question Marketaxess Holdings expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Marketaxess Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Marketaxess Holdings' 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.
Marketaxess Holdings Implied Volatility
Our Final Takeaway
When is the right time to buy or sell Marketaxess Holdings? Buying stocks such as Marketaxess Holdings 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.
While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Marketaxess as the risk-reward trade off is appealing enough to hold a position. 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 Marketaxess Holdings.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of MarketAxess Holdings. Please refer to our
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