The Motley Fool

JANUARY 21, 2024

OXY Total Long-Term Debt (Quarterly) data by YCharts. The issue was really about its balance sheet , which was suddenly loaded with debt. While that's hardly an uncommon after-effect of a large acquisition, leverage can be both a powerful tool for good and a huge burden. But with a heavy debt load, Occidental needed cash fast.

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The Motley Fool

MAY 12, 2024

One kind of ETF you may want to steer clear of is the leveraged ETF , and a good example is the ProShares UltraPro QQQ ETF (NASDAQ: TQQQ). What's a leveraged ETF? In the financial world, the word "leverage" typically refers to debt, and investors who can stomach a lot of risk sometimes invest with borrowed money.

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Securities and Exchange Commission (SEC) Leveraging Mutual Funds Exchange-Traded Funds 246

The Motley Fool

OCTOBER 19, 2024

A Chapter 7 bankruptcy (or BK, as we call it) would eliminate most or all of their debts and they would get a clean slate. If you find yourself in debt and you would rather not or cannot file BK, do you have options? Negotiations and debt settlement One way out is to negotiate with your creditors. Indeed you do. I can pay $0.10

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The Motley Fool

MARCH 17, 2024

But it's not bad news for debt providers because they have been rewarded for putting up capital, with their investment backed up by a relatively liquid asset, the airplanes themselves. I've also included its adjusted debt to earnings before interest, taxation, depreciation, amortization, and rent ( EBITDAR ) multiple.

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The Motley Fool

JUNE 21, 2024

Let's start with leverage. Cruise lines took on a lot of additional debt during the pandemic-related shutdown in 2020 that lasted well into 2021. Leverage isn't typically a positive thing, but let's play this out. Its debt-saddled enterprise value is almost $50 billion. Carnival's market cap is $20 billion. on Thursday.

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Enterprise Values Debt Leveraging Returns 246

The Motley Fool

APRIL 29, 2024

As an operating business, we are able to use cash flows, as well as proceeds from equity and debt financing, to accumulate bitcoin, which serves as our primary treasury reserve asset. In addition, it also enables us to acquire bitcoin through the use of excess cash or proceeds from equity capital raises or corporate debt capital raises.

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The Motley Fool

OCTOBER 8, 2024

It repaid debt, which steadily drove down its leverage ratio. Today, Energy Transfer has a strong investment-grade balance sheet with a leverage ratio in the lower half of its 4.0-to-4.5x That improving leverage ratio has provided Energy Transfer with increased financial flexibility. times target range.

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The Motley Fool

APRIL 1, 2024

billion, including debt, and will pay for the deal with cash on hand in debt. Home Depot makes a big move Home Depot will acquire SRS Distribution for $18.25

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Amortization Depreciation Earnings Before Interest Debt 246

The Motley Fool

JANUARY 22, 2025

Higher risk, higher potential reward The greatest beneficiaries of higher oil prices are leveraged companies or companies with higher breakeven levels. OXY Financial Debt to Equity (Quarterly) data by YCharts Each E&P pays a dividend, but they aren't nearly as reliable as ExxonMobil and Chevron. compared to 3.6%

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The Motley Fool

AUGUST 5, 2024

Instead, it's a highly leveraged yen "carry trade" that has led to billions of dollars in selling and liquidations starting in the crypto market on Sunday night. But the fact the yen carry trade is inherently a leveraged trade means there can be billions of dollars of positions (long and short) unwound in a short amount of time.

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The Motley Fool

AUGUST 8, 2024

billion, putting its net leverage ratio at around 0.6 billion of debt. billion of debt over the next two years. That debt repayment will help reduce its leverage ratio, which it expects will rise to around 1x after closing the deal. It grew its cash balance to $1.2 times after factoring in its $6.1

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The Motley Fool

FEBRUARY 17, 2024

That included slashing its distribution in half a few years ago to retain additional cash for debt reduction. Long highlighted that the company made meaningful progress last year to continue shoring up its financial foundation by using excess cash to repay debt. times target range. billion deal.

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Leveraging Debt Capital Returns 246

The Motley Fool

JANUARY 21, 2024

Its long-term debt consequently skyrocketed from around $11 billion to over $35 billion in a matter of months. CCL total long-term debt (quarterly) , data by YCharts. But now that the company is sailing again, it has to get its debt down to something more manageable. What's encouraging is that its debt is already down $4.6

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The Motley Fool

DECEMBER 20, 2024

In under two years, we have paid down over $8 billion of debt off our peak and significantly reduced interest expense, which, coupled with our improving EBITDA, has improved our leverage metrics tremendously. times net debt to EBITDA, closing in on our expectation to reach investment-grade leverage metrics in 2026.

Securities and Exchange Commission (SEC) 246

Securities and Exchange Commission (SEC) Leveraging Debt Assets 246

The Motley Fool

OCTOBER 17, 2024

Image source: Getty Images Americans have a lot of misunderstandings about debt, especially when considering small business loans. Small business loan debt is a tool Too often, Americans think that being in debt is some kind of moral failing or weakness. But debt is not inherently bad or good -- debt is a tool.

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Debt Depreciation Banks Assets 246

The Motley Fool

MAY 15, 2024

billion of debt. That put its leverage ratio at 12%, or 8.8% billion of debt and about $1.2 That exceeded the company's long-term target to get debt below $15 billion. That exceeded the company's long-term target to get debt below $15 billion. The company's debt will balloon once it closes its CrownRock deal.

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Debt Enterprise Values Leveraging Funds 246

The Motley Fool

JULY 1, 2024

Meanwhile, its balance sheet is in good shape with a leverage ratio (net debt/adjusted EBITDA ) of just 3.2 Western appears on track to reach its leverage (net debt/adjusted EBITDA) goal of 3 times by year end, at which point it could pay out excess (special or variable) distributions above its current $0.875 quarterly based payout.

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The Motley Fool

DECEMBER 8, 2023

KMI Financial Debt to EBITDA (TTM) data by YCharts That said, a part of the problem was Kinder Morgan's more aggressive use of leverage than its peers'. Kinder Morgan's leverage is lower today, but it still tends to use more leverage than Enterprise.

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Leveraging Amortization Depreciation Earnings Before Interest 246

The Motley Fool

DECEMBER 3, 2024

Leveraging the balance sheet to drive investment returns A franchise network of thousands of pizzerias creates durable cash flows. Management has been aggressive with this strategy, borrowing enough to leverage the business to between 4 and 6 times its EBITDA throughout the past decade.

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Leveraging Debt Shareholders Returns 246

The Motley Fool

MAY 11, 2024

Enterprise ended the quarter with leverage of 3x. It defines leverage as net debt adjusted for equity credit in junior subordinated notes (hybrids) divided by adjusted EBITDA. The company is also in solid financial shape concerning its debt load.

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Depreciation Enterprise Values Leveraging Debt 241

The Motley Fool

AUGUST 17, 2024

The strategy includes investing fresh software-business cash flows into more Bitcoin holdings, taking on new debt, and selling stock on the open market to finance further cryptocurrency buys. So if you believe that Bitcoin will rise in value over time, you can see MicroStrategy as a leveraged play on that trend.

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Exchange-Traded Funds Leveraging Debt Finance 241

The Motley Fool

JULY 21, 2024

AGNC's portfolio has a weighted average yield of 4.52%, so the company uses leverage -- meaning debt -- to boost returns for investors. The company expects leverage to be around 6 to 12 times its tangible stockholders' equity. It gains leverage by borrowing against its assets, which helps boost returns during good times.

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Investing Leveraging Assets Debt 245

The Motley Fool

OCTOBER 19, 2024

Return on equity (ROE) gives us an idea of how much a company earns for shareholders, while return on invested capital (ROIC) captures value creation for debt and equity holders. Or was it a wise strategic decision, alongside the rest of Occidental's capital allocation plan, that incorporates dividends, share buybacks, and debt repayments?

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The Motley Fool

JUNE 21, 2024

This means the company now has huge revenue but is also highly leveraged, which could spell trouble if revenue doesn't grow the way the market seems to believe it will. One measure of this is its debt-to-equity ratio, which indicates how much a company is relying on debt versus shareholder equity. That's pretty high.

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Debt Shareholders Leveraging Portfolios 243

The Motley Fool

SEPTEMBER 26, 2024

Thanks to its strategy of using long-term, fixed-rate debt and keeping its leverage ratio low, it has an investment-grade credit rating. leverage ratio, which was in the middle of its 4.5-to-5.0 Enbridge also has a rock-solid financial foundation. It ended the second quarter with a 4.7 target range.

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The Motley Fool

OCTOBER 7, 2024

billion of that company's debt. Furthermore, the company is on pace to reach its leverage ratio target of around 2.5 The investment bank believes the company will see improved revenue in the future and could potentially start buying back its shares, given the improvement in its leverage ratio.

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The Motley Fool

MARCH 16, 2024

The companies generate returns by earning a spread between their funding costs (short-term debt used to buy the MBS) and the yields of the mortgages in their portfolios. These firms then use leverage to boost their returns. Annaly and AGNC also have less leverage than they've used in the past before the pandemic.

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Leveraging Investing Capital Portfolios 243

The Motley Fool

JULY 31, 2024

Since our last earnings call on April 30, I am pleased to announce that we are making solid progress on our path forward of one, simplifying the business; two, operational performance improvement and three, reducing leverage. Our path forward goal is to reduce $2 billion in debt. On to balance sheet matters.

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Debt Assets Leveraging Finance 246

The Motley Fool

NOVEMBER 26, 2024

To top it all off, Chevron has an elite balance sheet with very low leverage. But the subsequent boom in 2021 and 2022 was a huge win for Oxy, which was able to pay down debt thanks to higher oil prices. Although the deal made Oxy, once again, more leveraged, it could pay off as long as oil prices remain around current levels.

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Stakes Leveraging Banks Debt 245

The Motley Fool

AUGUST 18, 2024

Finally, Enbridge has a strong balance sheet with a conservative leverage ratio. times leverage ratio , well within its 4.5x-5.0x The company expects its leverage ratio to trend toward the low end of its range as it closes its gas utility acquisitions and benefits from the incremental income of those businesses. target range.

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Leveraging Amortization Depreciation Earnings Before Interest 237

The Motley Fool

DECEMBER 14, 2024

Here's how these two elite REITs stack up against each other: Monthly Dividend Stock Dividend Yield Dividend Payout Ratio Leverage Ratio 2024 AFFO Growth Rate (Midpoint) Price-to-AFFO NNN REIT 5.4% NNN REIT has a slightly lower dividend payout ratio and leverage ratio. Realty Income 5.6% Data source: Realty Income and NNN REIT.

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Leveraging Debt Taxes Portfolios 243

The Motley Fool

APRIL 23, 2024

Carnival is tackling its debt problem Carnival and its peers had to do a lot of things to remain in business during the pandemic shutdown. Its long-term debt would go on to more than triple, peaking at nearly $33 billion a year ago. It paid down its debt by $4 billion in fiscal 2023. It reduced its leverage by another $1.8

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Debt Prospects Leveraging Finance 246

The Motley Fool

OCTOBER 14, 2024

The REIT also couldn't refinance its hefty debt load as it matured because of much higher interest rates and its tenant issues. It also had to cut its dividend payment twice to retain additional cash to repay debt. Meanwhile, it has a conservative balance sheet with a low leverage ratio. Those moves have started to pay off.

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Debt Leveraging Portfolios Assets 246

The Motley Fool

SEPTEMBER 19, 2024

It's trading for 26 times trailing earnings, and given its debt-bloated balance sheet, that multiple jumps to nearly 60 if you swap out market cap for enterprise value as the numerator. Carnival and its peers had to load up on debt at high rates or sell new shares at low prices to stay afloat. cruise was able to set sail.

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Enterprise Values Debt Taxes Leveraging 245

The Motley Fool

JANUARY 25, 2024

Filling them up, therefore, allows the company to leverage these high fixed costs and turn a higher profit. Carnival would like to get back to this approach, but for now, it's stuck repaying the substantial long-term debt it incurred during the pandemic when it couldn't sail. billion from its peak. But it still has a long way to go.

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Debt Shareholders Leveraging Accounting 246

The Motley Fool

FEBRUARY 14, 2024

And it's easy to understand why: When you reach the upper echelon of earnings, taking on debt isn't necessarily a concern since you may already have the funds to pay off your balances. For example, let's say a millionaire racks up $20,000 in credit card debt, with an 18% interest rate. of their income.

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Debt Finance Financing Leveraging 246

The Motley Fool

SEPTEMBER 8, 2024

Leverage ratios like debt-to-capital and financial-debt-to-equity are also lower now than before the pandemic, as Chevron has used outsize profits to pay down debt. billion in total debt, which is low for a company of Chevron's size. billion in total debt, which is low for a company of Chevron's size.

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