Remove Banking Remove Beta Remove Book Value Remove EBITDA
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Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

Note that this framework applies for all businesses, from the smallest, privately owned businesses, where debt takes the form of bank loans and even credit card borrowing and equity is owner savings, the largest publicly traded companies, where debt can be in the form of corporate bonds and equity is shares held by public market investors.

Equity 52
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Data Update 5 for 2024: Profitability - The End Game for Business?

Musings on Markets

Most financial service firms have no revenues, though they have their analogs - loans for banks, insurance premiums for insurance companies etc. In maturity, with debt entering the financing mix, net margins become good measures of profitability, and in decline, as earnings decline and capital expenditures ease, EBITDA margins dominate.

Equity 79
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Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Brian DeChesare

The company still pays interest on the full $1000 and must repay it upon maturity, but you can buy the issuance at a steep discount because there’s a significant chance of default (see: book value vs. market value vs. face value ). A sharply declining stock price does not necessarily mean a company is “distressed.”

Equity 88