Xenia Hotels Resorts has 1.63
B in debt with debt to equity (D/E) ratio of 1.06, which is OK given its current industry classification. The entity has a current ratio of 3.42, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Xenia Hotels financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Xenia Hotels, including all of Xenia Hotels'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 Xenia Hotels assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Xenia Hotels 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 Xenia Total Liabilities
Xenia Hotels Resorts liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Xenia Hotels Resorts 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 Xenia Hotels balance sheet include debt obligations and money owed to different Xenia Hotels vendors, workers, and loan providers. Below is the chart of Xenia short long-term liabilities accounts currently reported on its balance sheet.
You can use Xenia Hotels Resorts
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Xenia Hotels's Liquidity
Xenia Hotels
financial leverage refers to using borrowed capital as a funding source to finance Xenia Hotels Resorts ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Xenia Hotels 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 Xenia Hotels' 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 Xenia Hotels' 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 Xenia Hotels's total debt and its cash.
What is the case for Xenia Hotels Investors
The firm reported the last year's revenue of 576.31
M. Reported Net Loss for the year was (172.27
M) with profit before taxes, overhead, and interest of 321.64
M.
Asset Breakdown
| Total Assets | 3.81 Billion |
| Current Assets | 177.62 Million |
| Goodwill | 52.63 Million |
| Tax Assets | 3.42 Million |
Anything left for Xenia Hotels after the fall?
Latest Skewness is up to 0.09. Price may fall again.
As of the 1st of March, Xenia Hotels maintains the Market Risk Adjusted Performance of 1.36,
mean deviation of 2.47, and Downside Deviation of 2.79. Relative to
fundamental indicators, the
technical analysis model lets you check existing technical drivers of Xenia Hotels Resorts, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to analyze nineteen
technical drivers for Xenia Hotels Resorts, which can be compared to its rivals. Please check out
Xenia Hotels Resorts variance and
potential upside to decide if Xenia Hotels Resorts is priced fairly, providing market reflects its latest price of 18.79 per share. Given that Xenia Hotels Resorts has
jensen alpha of 0.6224, we strongly advise you to confirm Xenia Hotels Resorts's prevalent market performance to make sure the company can sustain itself at a future point.
The Bottom Line
While some firms in the reit—hotel & motel industry are either recovering or due for a correction, Xenia may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 1st of March 2021, our latest 30 days buy-or-sell advice on the enterprise is
Buy. However, we believe Xenia Hotels is currently
overvalued with
below average probability of distress for the next two years.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Xenia Hotels Resorts. Please refer to our
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