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 PPG Industries Inc. (NYSE:PPG) rose by 30.96%. Before having a look at the importance of debt, let's look at how much debt PPG Industries has.
PPG Industries's Debt
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According to the PPG Industries’s most recent balance sheet as reported on April 28, 2020, total debt is at $6.21 billion, with $4.75 billion in long-term debt and $1.46 billion in current debt. Adjusting for $1.89 billion in cash-equivalents, the company has a net debt of $4.32 billion.
To understand the degree of financial leverage a company has, investors look at the debt ratio. Considering PPG Industries’s $18.06 billion in total assets, the debt-ratio is at 0.34. 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
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. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.
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.