The Motley Fool

APRIL 26, 2024

It's that need to make your own contribution that makes the match such a high return on investment. If not, then recognize that every bit you're able to invest helps. Over time, as your salary increases and/or you pay off debts, consider increasing your contribution until you get closer to that overall max.

Debt 246

Debt Accounting Returns Return On Investment 246

The Motley Fool

OCTOBER 25, 2024

However, one goal may be even more important than all of these : reducing debt. Carnival's debt load remains alarming While Carnival's revenue and operating income have exceeded pre-pandemic levels, the cruise company's stock is still 68% below its all-time high of $66 , reached in early 2018. billion in long-term debt.

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Debt Earnings Before Interest Amortization Depreciation 130

The Motley Fool

SEPTEMBER 24, 2024

This rising return on invested capital (ROIC) is essential to investors as it shows the company is improving its ability to generate profits from its debt and equity -- a feat that frequently leads to a stock outperforming. TNC Net Profit Margin and ROIC data by YCharts. remains near 10-year highs.

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Mergers and Acquisitions Debt Return On Investment Capital 246

The Motley Fool

OCTOBER 5, 2024

Carnival's wall of debt First, let's take a quick look back in time at the challenges Carnival faced in recent years. The halt in sailings drove the previously profitable company to a loss, and resulted in Carnival building up a wall of debt. Carnival also has prepaid debt, for example prepaying $7.3 Image source: Getty Images.

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Shareholders Debt Earnings Before Interest Amortization 130

The Motley Fool

MARCH 17, 2024

As the International Air Transport Association argues, "Even prior to the COVID-19 crisis, equity owners had not been rewarded adequately for risking their capital," because "average airline returns have rarely been as high as the industry's cost of capital." Using cash flow to pay down debt (adjusted debt fell from $32.9

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Debt Leveraging Earnings Before Interest Amortization 240

The Motley Fool

NOVEMBER 27, 2023

ITW Return on Invested Capital data by YCharts. The company has prudently acquired companies over the years (more than two dozen acquisitions), steadily increasing its return on invested capital (ROIC). While Illinois Tool Works leans on debt, it doesn't do so too heavily. TTM = trailing 12 months.

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Conglomerates Earnings Before Interest Amortization Depreciation 246

The Motley Fool

APRIL 15, 2024

The LP has delivered an average return on invested capital (ROIC) of 12% over the last 10 years. Servicing debt shouldn't disrupt Enterprise Products Partners' distribution payouts either. The company manages its debt well. And it's the only midstream debt issuer with an A- credit rating. Its units trade at 10.9

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Debt Taxes Assets Return On Investment 246

The Motley Fool

OCTOBER 19, 2024

How can we tell how good a company has done at investing shareholder wealth? 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. Was the CrownRock acquisition an attempt to chase profits?

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Leveraging Shareholders Debt Capital 246

The Motley Fool

SEPTEMBER 8, 2024

If the company is going to get a positive return on investment with these content deals, Sirius XM will need to attract more advertising dollars to its platform. Sirius XM is saddled with a lot of debt. At the end of last quarter, it had $9 billion in long-term debt that will be due in varying degrees from 2024 to 2031.

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Conglomerates Debt Returns Return On Investment 227

The Motley Fool

OCTOBER 26, 2024

The low earnings valuations are due to their high debt, and the market worries about their earnings' traditional cyclicality. billion in adjusted net debt. Management expects to repay $4 billion in debt in 2024, which is part of the reason why Moody's and Fitch have now rated its debt as investment grade.

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Debt Returns Return On Investment Capital 130

The Motley Fool

SEPTEMBER 30, 2024

Lower interest rates lower the cost of capital and can increase the return on investment for capital-intensive projects. In the past nine years, it has reduced its total net long-term debt position by 29% and lowered its leverage. PBA Debt To Capital (Quarterly) data by YCharts. For context, Kinder Morgan spent $2.5

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Exchange-Traded Funds Debt Leveraging Capital 130

The Motley Fool

JANUARY 27, 2024

Return on invested capital also has been on the rise over the past year. AMZN Return on Invested Capital data by YCharts These moves should benefit the company in better times, too. Investors' biggest concern about Carnival has been the company's debt levels.

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Debt Return On Investment Capital Shareholders 241

The Motley Fool

JULY 3, 2023

The airline declared a dividend of 10 cents per share, saying the resumption reflected progress on its three-year financial plan that has already seen about $10 billion in debt reduction. For all of the debt it has paid down, its levels are still above where they were pre-crisis. per share consensus estimate.

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Debt Capital Return On Investment Returns 246

The Motley Fool

JULY 4, 2023

AT&T has a lot of debt, partly a legacy of its failed media acquisitions. At the end of the first quarter, total debt stood at $137 billion. This is a tough hand to hold in a rising interest rate environment, but AT&T will be able to use some of its cash flow to pay down this debt over time. Is AT&T stock a buy?

Debt 245

Debt Capital Return On Investment Stock Market 245

The Motley Fool

JANUARY 1, 2024

Doing so could be the ticket to staying out of credit card debt and avoiding a whole lot of financial stress if you're faced with any unexpected expenses. That's a lot of money, so you may be tempted to try to invest it or do something strategic with it in order to maximize your return on investment. Here's what it is.

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Funds Banks Debt Accounting 245

The Motley Fool

NOVEMBER 2, 2024

It ended the quarter with leverage of 3x, which it defines as net debt adjusted for equity credit in junior subordinated notes (hybrids) divided by adjusted EBITDA. It noted that it has produced about a 12% return on invested capital over the past decade. Enterprise currently has $6.9

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Depreciation Debt Enterprise Values Earnings Before Interest 130

The Motley Fool

JANUARY 14, 2024

He also places a high value on companies that generate profits that can be reinvested in the business at high rates of return. Apple certainly passes the latter test, earning an extraordinary return on invested capital of 56%. Buffett admires Apple's ability to make products that people can't live without.

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Shareholders Financial Institutions Debt Stakes 246

The Motley Fool

JULY 21, 2024

This allowed FedEx to maintain a stable gross margin and return on invested capital (ROIC). FDX Return on Invested Capital data by YCharts. FedEx maintains a debt-heavy capital structure -- its long-term debt-to-equity ratio is over 0.9. so it's not struggling to meet its debt obligations.

Debt 130

Debt Shareholders Capital Return On Investment 130

The Motley Fool

NOVEMBER 24, 2023

The company's return on invested capital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. billion of long-term debt, Emerson's debt-to-equity ratio indicates an exceptionally healthy balance sheet, even if you exclude intangible assets associated with its previous acquisitions.

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Debt Shareholders Prospects Portfolios 234

The Motley Fool

MAY 11, 2024

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. Enterprise has averaged about a 13% return on invested capital over the past five years. It currently has $6.9

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Depreciation Enterprise Values Leveraging Debt 241

The Motley Fool

MARCH 15, 2024

Taking advantage of an employer match should almost always be your top financial priority after paying your bills, except in very unusual circumstances such as when you have payday loan debt to repay. This does not mean you should pay off your mortgage or low-interest debt like student loans.

Debt 130

Debt Accounting Funds Return On Investment 130

The Motley Fool

AUGUST 2, 2024

And so is what to do if you have debts or bills. Pay off any high-interest debt The average credit card charges more than 22% interest. You'll be hard-pressed to find any investment that gives you a 22% return. Ergo, if you have high-interest debt, the best return on investment is to pay off that debt.

Debt 130

Debt Accounting Banks Returns 130

The Motley Fool

APRIL 23, 2024

In fact, Microsoft and Nvidia have more cash and equivalents like marketable securities than long-term debt, hence the negative figures. NVDA net total long-term debt (quarterly) data by YCharts. Oil and gas is capital intensive, and so is investing in AI. Microsoft pays more dividends than any other U.S.-based

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Debt Capital Shareholders Banks 242

The Motley Fool

OCTOBER 1, 2024

A top-tier return on invested capital First, the company has maintained an average return on invested capital (ROIC) of 53% over the last decade.

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Capital Return On Investment Returns Debt 246

The Motley Fool

JANUARY 21, 2024

billion, acquired Magnum Development, and agreed to buy Hess in a giant $60 billion deal (including debt) that's expected to close early this year. The return on investment for Chevron's acquisitions won't be immediate, but its healthy dividend should give investors the patience to stick around for the long haul.

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Debt Shareholders Investors Returns 259

The Motley Fool

SEPTEMBER 7, 2024

This dynamic has favored both retailers, allowing Home Depot to generate wide operating margins and high returns on invested capital. It had a trailing 12-month return on invested capital ( ROIC ) of 31.9%, which was down from 41.5% in the previous period due to its acquisition of SRS Distribution, but still strong.

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Return On Investment Taxes Stock Market Stock Market 238

The Motley Fool

DECEMBER 13, 2023

A company's return on invested capital (ROIC) measures the return it generates when it invests in the business. A high return means it can put resources in and get a lot out. AT&T's business is currently generating a negative ROIC, meaning it's destroying value when it invests. A turnaround on the way?

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Debt Investing Return On Investment Shareholders 130

The Motley Fool

MARCH 16, 2024

This should include housing, transportation, food, debt, insurance, and any other repeating expenses you have. Pay down credit card debt Using credit cards can be a double-edged sword. Before you prioritize your retirement savings and investing, be sure to knock down your credit card debt as much as possible.

Debt 130

Debt Taxes Funds Assets 130

The Motley Fool

OCTOBER 5, 2024

31, the company still carried almost $29 billion in long-term debt on its balance sheet. This is evidenced by the company's extremely low return on invested capital (ROIC). To be fair, this balance has been coming down steadily. But it puts the business in a precarious situation with almost no margin for error.

Debt 246

Debt Shareholders Capital Returns 246

The Motley Fool

MAY 12, 2024

That's because borrowing costs on new or floating-rate debt go up, making it more expensive to fund acquisitions. This affects short-term earnings, as the rising costs squeeze profits and require a higher return on investment to make acquisitions worthwhile. and is on solid financial footing, with no debt maturing until 2028.

Debt 245

Debt Leveraging Prospects Shareholders 245

The Motley Fool

MARCH 2, 2024

Of course, it's possible to get a much higher return on investment (ROI) using either a high-yield savings account or by shopping around for a more competitive CD rate. Your borrowing costs would be far higher than the returns you could earn on even the most competitive CD.

Funds 130

Funds Banks Debt Accounting 130

The Motley Fool

JULY 3, 2024

Given Bitcoin's current price of roughly $60,000, that would imply a more than 13,000% return on investment. is adding $1 trillion in new debt every 100 days. government debt, and that's when the "Bitcoin is perfect money" scenario might start to play out. Yet, it's hard to deny that the U.S. By some estimates, the U.S.

Debt 246

Debt Assets Returns Return On Investment 246

The Motley Fool

AUGUST 18, 2024

Over the last decade, MTY has averaged a return on invested capital (ROIC) of 15%, generating high levels of FCF compared to the debt and equity it uses to fund its M&A ambitions. This $400 million outlay gives the company plenty of integration work to do as it focuses on paying down its $686 million net debt balance.

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Mergers and Acquisitions Enterprise Values Debt Earnings Before Interest 130

The Motley Fool

MAY 5, 2024

S&P Global has a robust economic moat When companies borrow money from the public, it's important for prospective investors to understand the company's health, whether it will be able to repay its debts, and the risks associated with investing in that debt. Last year, S&P Global generated $3.9 billion in FCF.

Debt 130

Debt Prospects Financing Finance 130

The Motley Fool

OCTOBER 31, 2024

Default Risk -- Most baby bonds are classified as unsecured debt of the issuer. If an issuer were to default, baby bondholders would get paid only after the claims of secured debt holders were met. Consider talking with a tax professional, and be mindful of how these taxes could impact your overall returns on investment.

Due Diligence 100

Due Diligence Investing Bidding Taxes 100

The Motley Fool

OCTOBER 28, 2023

The higher the rate you're paying, the more advantageous it is to pay the loan off early because your return on investment (ROI) is the interest saved. That's a pretty high rate -- although not as high as the rate you'd pay on credit card debt (which was 21.19% as of August 2023). Is there a prepayment penalty?

Debt 130

Debt Financing Finance Return On Investment 130

The Motley Fool

APRIL 28, 2024

In fact, it's worth doing, even if you have some high-interest debt. You have a lot of high-interest debt Finally, if you have a lot of high-interest debt, you should pay that off before investing in a CD. The average credit card interest rate right now is 21.59%. If you spot any of these four signs, don't open a CD.

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Banks Debt Accounting Taxes 130