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 Catalent (NYSE:CTLT) increased by 19.74%. Before having a look at the importance of debt, let us look at how much debt Catalent has.
Catalent's Debt
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According to the Catalent’s most recent balance sheet as reported on August 31, 2020, total debt is at $3.02 billion, with $2.95 billion in long-term debt and $72.90 million in current debt. Adjusting for $953.20 million in cash-equivalents, the company has a net debt of $2.06 billion.
Shareholders look at the debt-ratio to understand how much financial leverage a company has. Catalent has $7.78 billion in total assets, therefore making the debt-ratio 0.39. 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 35% might be higher for one industry and normal for another.
Why Shareholders 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.
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.