Sky Network Current Debt

SKT Stock   2.52  0.04  1.56%   
Sky Network Television holds a debt-to-equity ratio of 0.0. Short Term Debt is likely to gain to about 53.2 M in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 42.2 M in 2024. Sky Network's financial risk is the risk to Sky Network stockholders that is caused by an increase in debt.
Short Term Debt is likely to gain to about 53.2 M in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 42.2 M in 2024.
  
Check out the analysis of Sky Network Fundamentals Over Time.

Sky Network Financial Leverage Rating

Sky Network Television bond ratings play a critical role in determining how much Sky Network have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Sky Network's borrowing costs.

Sky Network Common Stock Shares Outstanding Over Time

Sky Network Assets Financed by Debt

Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Sky Network's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Sky Network, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Sky Network debt ratio should be compared their industry average or other competing firms.

Sky Short Long Term Debt Total

Short Long Term Debt Total

42.16 Million

At this time, Sky Network's Short and Long Term Debt Total is comparatively stable compared to the past year.

Understaning Sky Network Use of Financial Leverage

Sky Network financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Sky Network's total debt position, including all of 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 Sky Network assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sky Network debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Sky Network's 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 Sky Network's 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).
Last ReportedProjected for Next Year
Short and Long Term Debt Total44.4 M42.2 M
Net Debt-6.1 M-5.8 M
Short Term Debt29.5 M53.2 M
Long Term Debt931.5 K884.9 K
Short and Long Term Debt931.5 K884.9 K
Long Term Debt Total33.6 M31.9 M
Please read more on our technical analysis page.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Sky Network in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Sky Network's short interest history, or implied volatility extrapolated from Sky Network options trading.

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Check out the analysis of Sky Network Fundamentals Over Time.
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When running Sky Network's price analysis, check to measure Sky Network's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sky Network is operating at the current time. Most of Sky Network's value examination focuses on studying past and present price action to predict the probability of Sky Network's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sky Network's price. Additionally, you may evaluate how the addition of Sky Network to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Sky Network's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sky Network is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sky Network's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

What is Financial Leverage?

Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.

Leverage and Capital Costs

The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.

Benefits of Financial Leverage

Leverage provides the following benefits for companies:
  • Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
  • It provides a variety of financing sources by which the firm can achieve its target earnings.
  • Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.