27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Shares of Thermo Fisher Scientific (NYSE:TMO) rose by 21.69% in the past three months. Before having a look at the importance of debt, let us look at how much debt Thermo Fisher Scientific has.
Thermo Fisher Scientific's Debt
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Based on Thermo Fisher Scientific’s financial statement as of July 31, 2020, long-term debt is at $20.64 billion and current debt is at $675.00 million, amounting to $21.31 billion in total debt. Adjusted for $5.82 billion in cash-equivalents, the company's net debt is at $15.49 billion.
To understand the degree of financial leverage a company has, investors look at the debt ratio. Considering Thermo Fisher Scientific’s $61.59 billion in total assets, the debt-ratio is at 0.35. 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 25% might be higher for one industry and average for another.
Why Investors Look At Debt?
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.
However, due to interest-payment obligations, cash-flow of a company can be impacted. 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% profits every 20 days?
This is what Nic Chahine averages with his options 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.