Ump Financial Corp currently holds 2.79
B in liabilities with Debt to Equity (D/E) ratio of 9.08, indicating Ump Financial may have difficulties to generate enough cash to satisfy its financial obligations.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ump Financial has an asset utilization ratio of 7.07 percent. This indicates that the company is making $0.0707 for each dollar of assets. An increasing asset utilization means that Ump Financial Corp is more efficient with each dollar of assets it utilizes for everyday operations.
UMB Financial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of UMB Financial, including all of UMB Financial'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 UMB Financial assets, the company is considered highly leveraged. Understanding the
composition and structure of overall UMB Financial 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 UMB Total Liabilities
UMB Financial liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. UMB Financial 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 UMB Financial balance sheet include debt obligations and money owed to different UMB Financial vendors, workers, and loan providers. Below is the chart of UMB short long-term liabilities accounts currently reported on its balance sheet.
You can use UMB Financial
financial leverage analysis tool to get a better grip on understanding its financial position
How important is UMB Financial's Liquidity
UMB Financial
financial leverage refers to using borrowed capital as a funding source to finance UMB Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. UMB Financial 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 UMB Financial'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 UMB Financial'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 UMB Financial's total debt and its cash.
Breaking down UMB Financial Further
The entity reported the previous year's revenue of 1.35
B. Net Income was 430.84
M with profit before overhead, payroll, taxes, and interest of 1.16
B.
Another setback for Ump Financial shareholders
Latest expected short fall indicator falls down to -1.26. Possible price growth? Ump Financial Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.12. However, we advise investors to further question Ump Financial Corp 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 Ump Financial'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 Ump Financial'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.
Ump Financial Implied Volatility
Ump Financial's implied volatility exposes the market's sentiment of Ump Financial Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ump Financial's 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 Ump Financial stock will not fluctuate a lot when Ump Financial's options are near their expiration.
Our Conclusion on Ump Financial
Although many other companies under the banks—regional industry are still a bit expensive, Ump Financial may offer a potential longer-term growth to shareholders. With an optimistic outlook on your 90 days horizon, it may be a good time to pick up new shares of Ump Financial or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. 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 Ump Financial.
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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 UMB Financial. Please refer to our
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