U.S. markets open in 8 hours 45 minutes
  • S&P Futures

    3,849.00
    +29.75 (+0.78%)
     
  • Dow Futures

    31,976.00
    +200.00 (+0.63%)
     
  • Nasdaq Futures

    12,451.25
    +154.00 (+1.25%)
     
  • Russell 2000 Futures

    2,217.30
    +16.50 (+0.75%)
     
  • Crude Oil

    65.39
    +0.34 (+0.52%)
     
  • Gold

    1,687.20
    +9.20 (+0.55%)
     
  • Silver

    25.41
    +0.14 (+0.54%)
     
  • EUR/USD

    1.1864
    +0.0011 (+0.09%)
     
  • 10-Yr Bond

    1.5960
    -1.5960 (-100.00%)
     
  • Vix

    25.47
    -24.66 (-100.00%)
     
  • GBP/USD

    1.3836
    +0.0015 (+0.11%)
     
  • USD/JPY

    109.1720
    +0.2710 (+0.25%)
     
  • BTC-USD

    54,191.46
    +3,749.86 (+7.43%)
     
  • CMC Crypto 200

    1,092.10
    +67.89 (+6.63%)
     
  • FTSE 100

    6,719.13
    +88.61 (+1.34%)
     
  • Nikkei 225

    28,980.71
    +237.46 (+0.83%)
     

What Does BrightView's Debt Look Like?

  • Oops!
    Something went wrong.
    Please try again later.
Benzinga Insights
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

 

Over the past three months, shares of BrightView Holdings (NYSE:BV) increased by 17.74%. Before having a look at the importance of debt, let us look at how much debt BrightView Holdings has.

BrightView Holdings's Debt

Based on BrightView Holdings's financial statement as of November 18, 2020, long-term debt is at $1.13 billion and current debt is at $12.30 million, amounting to $1.14 billion in total debt. Adjusted for $157.10 million in cash-equivalents, the company's net debt is at $982.70 million.

Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.

Investors look at the debt-ratio to understand how much financial leverage a company has. BrightView Holdings has $3.07 billion in total assets, therefore making the debt-ratio 0.37. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 25% might be higher for one industry and average for another.

Importance Of Debt

Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.

Interest-payment obligations can impact the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.

Looking for stocks with low debt-to-equity ratios? Check out Benzinga Pro, a market research platform which provides investors with near-instantaneous access to dozens of stock metrics - including debt-to-equity ratio. Click here to learn more.

 

What Does BrightView Holdings's Debt Look Like?
What Does BrightView Holdings's Debt Look Like?

 

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.