M this year, although the value of Revenue Per Employee will most likely fall to about 429.7 K. While some baby boomers are getting worried about automobiles space, it is reasonable to outline Thor Industries as an investment alternative. " name="Description" /> M this year, although the value of Revenue Per Employee will most likely fall to about 429.7 K. While some baby boomers are getting worried about automobiles space, it is reasonable to outline Thor Industries as an investment alternative. " /> M this year, although the value of Revenue Per Employee will most likely fall to about 429.7 K. While some baby boomers are getting worried about automobiles space, it is reasonable to outline Thor Industries as an investment alternative. " />

Chances of Thor Industries (USA Stocks:THO) to slide in January

Thor Industries is scheduled to announce its earnings today. Thor Industries Free Cash Flow is quite stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 281.2 Million. Invested Capital Average is expected to rise to about 617.4 M this year, although the value of Revenue Per Employee will most likely fall to about 429.7 K. While some baby boomers are getting worried about automobiles space, it is reasonable to outline Thor Industries as an investment alternative.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Thor Industries has 1.76 B in debt with debt to equity (D/E) ratio of 0.5, which is OK given its current industry classification. The entity has a current ratio of 1.71, which is typical for the industry and considered as normal. Debt can assist Thor Industries until it has trouble settling it off, either with new capital or with free cash flow. So, Thor Industries' 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 Thor Industries sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Thor Industries to invest in growth at high rates of return. When we think about Thor Industries' use of debt, we should always consider it together with cash and equity.
Thor Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Thor Industries, including all of Thor Industries'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 Thor Industries assets, the company is considered highly leveraged. Understanding the composition and structure of overall Thor Industries 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 Thor Total Debt

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

How important is Thor Industries's Liquidity

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

What is the case for Thor Industries Investors

The modest gains experienced by current holders of Thor Industries created some momentum for institutional investors as it was traded today as low as 82.31 and as high as 86.02 per share. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.28. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Thor Industries partners.

Liabilities Breakdown

1.9 B
Current Liabilities
396.8 M
Long-Term Liabilities
Total Liabilities4.12 Billion
Current Liabilities1.89 Billion
Long-Term Liabilities396.76 Million
Tax Liabilities35.75 Million

Will Thor Industries price slide impact its balance sheet?

Latest value at risk is at -7.41. Thor Industries shows above-average downside volatility for the selected time horizon. We advise investors to inspect Thor Industries further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Thor Industries future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Thor Industries' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Thor Industries' 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.

Our Final Take On Thor Industries

Whereas other companies in the recreational vehicles industry are either recovering or due for a correction, Thor Industries may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Thor Industries valuation and our trade advice on Thor Industries is due to the recent market swings and your selection of investing horizon. 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 Thor Industries.

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Editorial Staff

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 Thor Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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