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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Frequency Electronics's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $4.72 Mil.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Frequency Electronics's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $4.72 Mil. Frequency Electronics's Total Assets for the quarter that ended in Jan. 2024 was $77.74 Mil. Frequency Electronics's LT-Debt-to-Total-Asset for the quarter that ended in Jan. 2024 was 0.06.
Frequency Electronics's LT-Debt-to-Total-Asset declined from Jan. 2023 (0.08) to Jan. 2024 (0.06). It may suggest that Frequency Electronics is progressively becoming less dependent on debt to grow their business.
The historical data trend for Frequency Electronics's Long-Term Debt & Capital Lease Obligation can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Frequency Electronics Annual Data | |||||||||||||||||||||
Trend | Apr14 | Apr15 | Apr16 | Apr17 | Apr18 | Apr19 | Apr20 | Apr21 | Apr22 | Apr23 | |||||||||||
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | - | 9.44 | 8.37 | 7.35 | 5.88 |
Frequency Electronics Quarterly Data | ||||||||||||||||||||
Apr19 | Jul19 | Oct19 | Jan20 | Apr20 | Jul20 | Oct20 | Jan21 | Apr21 | Jul21 | Oct21 | Jan22 | Apr22 | Jul22 | Oct22 | Jan23 | Apr23 | Jul23 | Oct23 | Jan24 | |
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | 6.26 | 5.88 | 5.52 | 5.13 | 4.72 |
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
Frequency Electronics (NAS:FEIM) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
Frequency Electronics's LT-Debt-to-Total-Asset ratio for the quarter that ended in Jan. 2024 is calculated as:
LT-Debt-to-Total-Asset (Q: Jan. 2024 ) | = | Long-Term Debt & Capital Lease Obligation (Q: Jan. 2024 ) | / | Total Assets (Q: Jan. 2024 ) |
= | 4.716 | / | 77.744 | |
= | 0.06 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
Thank you for viewing the detailed overview of Frequency Electronics's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
Russell M Sarachek | director | 4718 FOXHALL CRESCENTS NW, WASHINGTON DC 20007 |
Edenbrook Long Only Value Fund, Lp | director, 10 percent owner | EDENBROOK CAPITAL, LLC, 116 RADIO CIRCLE, SUITE 202, MT. KISCO NY 10549 |
Steven E Strang | officer: President, FEI-Zyfer, Inc. | C/O FREQUENCY ELECTRONICS, INC., 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553 |
Thomas Mcclelland | officer: Vice President, Comml Products | C/O FREQUENCY ELECTRONICS INC, 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553 |
Stanton D Sloane | director | COMTECH TELECOMMUNICATIONS CORP., 68 SOUTH SERVICE RD., SUITE 230, MELVILLE NY 11747 |
John Patrick Caulfield | officer: VP of Manufacturing | C/O FREQUENCY ELECTRONICS, 55 CHARLES LINDBERGH BLVD., MITCHEL FIELD NY 11533 |
Edenbrook Capital, Llc | director, 10 percent owner | 116 RADIO CIRCLE, SUITE 202, MT. KISCO NY 10549 |
Martin B Bloch | director, officer: President | FREQUENCY ELECTRONICS INC, 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553 |
Robert Schwartz | director | 11552 PROSPEROUS DRIVE, ODESSA FL 33556 |
Jonathan Brolin | director, 10 percent owner | 2 DEPOT PLAZA, 4TH FLOOR, BEDFORD HILLS NY 10507 |
Privet Fund Lp | 10 percent owner, other: See Explanation of Responses | 3280 PEACHTREE ROAD NE, SUITE 2670, Atlanta GA 30305 |
Oleandro Mancini | officer: Vice President, Bus. Develop | C/O FREQUENCY ELECTRONICS INC, 55 CHARLES LINDBERGH BLVD, MITCHEL FIELD NY 11553 |
Lance W Lord | director | 1110 TRUMPETERS COURT, MONUMENT CO 80132 |
Steven Lawrence Bernstein | officer: Chief Financial Officer | C/O FREQUENCY ELECTRONICS INC., 55 CHARLES LINDBERGH BLVD., MITCHEL FIELD NY 11553 |
Ryan Levenson | 10 percent owner, other: See Explanation of Responses | 2396 DELLWOOD DRIVE, ATLANTA GA 30305 |
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