27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Over the past three months, shares of Helen Of Troy Inc. (NASDAQ:HELE) rose by 42.12%. Before having a look at the importance of debt, let's look at how much debt Helen Of Troy has.
Helen Of Troy's Debt
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Based on Helen Of Troy’s balance sheet as of April 29, 2020, long-term debt is at $337.42 million and current debt is at $1.88 million, amounting to $339.31 million in total debt. Adjusted for $24.47 million in cash-equivalents, the company's net debt is at $314.84 million.
To understand the degree of financial leverage a company has, shareholders look at the debt ratio. Considering Helen Of Troy’s $1.90 billion in total assets, the debt-ratio is at 0.18. As a rule of thumb, a debt-ratio more than 1 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 35% might be higher for one industry, whereas average for another.
Why Debt Is Important
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. 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.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.