|Bid||0.00 x 800|
|Ask||0.00 x 1200|
|Day's Range||19.80 - 20.67|
|52 Week Range||8.56 - 21.25|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||36.76|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||19.54|
Brazilian sugar and ethanol producer Cosan SA will issue roughly 638 million reais ($113 million) of new share capital to fully incorporate shareholders of subsidiary Cosan Logistica SA, the company said on Tuesday. In December, Cosan said it planned to undergo a reorganization and list American Depository Shares, or ADSs, for the first time. Under the restructuring, Cosan Limited, or CZZ, thecompany's financial arm, as well as logistics branch CosanLogistica, itself a CZZ subsidiary, are to be fullyincorporated into Cosan.
Brazilian sugar and ethanol producer Cosan SA will issue roughly 638 million reais ($113 million) of new share capital to fully incorporate shareholders of subsidiary Cosan Logistica SA , the company said on Tuesday. In December, Cosan said it planned to undergo a reorganization and list American Depository Shares, or ADSs, for the first time. Under the restructuring, Cosan Limited, or CZZ, the company's financial arm, as well as logistics branch Cosan Logistica, itself a CZZ subsidiary, are to be fully incorporated into Cosan.
Over the past three months, shares of Cosan (NYSE:CZZ) moved higher by 28.12%. Before we understand the importance of debt, let us look at how much debt Cosan has. Cosan's Debt Based on Cosan's financial statement as of May 28, 2020, long-term debt is at $6.22 billion and current debt is at $857.16 million, amounting to $7.08 billion in total debt. Adjusted for $2.06 billion in cash-equivalents, the company's net debt is at $5.01 billion. 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. To understand the degree of financial leverage a company has, investors look at the debt ratio. Considering Cosan's $16.01 billion in total assets, the debt-ratio is at 0.44. Generally speaking, a debt-ratio more than one means that a large portion of debt is funded by assets. As the debt-ratio increases, so the does the risk of defaulting on loans, if interest rates were to increase. Different industries have different thresholds of tolerance for debt-ratios. A debt ratio of 25% might be higher for one industry and average for another. Why Investors Look At Debt? Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital. Interest-payment obligations can impact the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital. 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. See more from BenzingaClick here for options trades from BenzingaVail Resorts: Debt Insights12 Information Technology Stocks Moving In Friday's Pre-Market Session© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.