ADTN has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
ADTN has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Adtran Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $226 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. Adtran Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $226 Mil. Adtran Holdings's Total Assets for the quarter that ended in Dec. 2023 was $1,683 Mil. Adtran Holdings's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.14.
Adtran Holdings's LT-Debt-to-Total-Asset increased from Dec. 2022 (0.04) to Dec. 2023 (0.14). It may suggest that Adtran Holdings is progressively becoming more dependent on debt to grow their business.
The historical data trend for Adtran Holdings'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.
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.
Adtran Holdings (NAS:ADTN) 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.
Adtran Holdings's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 is calculated as:
LT-Debt-to-Total-Asset (Q: Dec. 2023 ) | = | Long-Term Debt & Capital Lease Obligation (Q: Dec. 2023 ) | / | Total Assets (Q: Dec. 2023 ) |
= | 226.42 | / | 1682.512 | |
= | 0.13 |
* 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 Adtran Holdings's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
Ulrich Dopfer | officer: Chief Financial Officer | 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806 |
Thomas R Stanton | officer: Vice President & Gen. Mgr. | C/O ADTRAN, 901 EXPLORER BLVD., HUNTSVILLE AL 35806 |
Gregory James Mccray | director | 422 HANDEL COURT, WHEATON IL 60187 |
Wilson James Denson Jr | officer: Chief Revenue Officer | 901 EXPLORER BLVD, HUNTSVILLE AL 35806 |
Christoph Glingener | officer: CEO of ADVA | 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806 |
Michael Foliano | officer: CFO | 901 EXPLORER BLVD, HUNTSVILLE AL 35806 |
Brian Protiva | director, officer: CEO of ADVA | 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806 |
James Denson Wilson Jr | Chief Revenue Officer | |
Nikos Theodosopoulos | director | C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054 |
Johanna Hey | director | 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806 |
Marc Kimpe | officer: SVP, Research & Development | 131 HERITAGE LANE, MADISON AL 35758 |
Ray Harris | officer: Chief Information Officer | 9811 RITCHIE CT, IJAMSVILLE MD 21754 |
Balan Nair | director | 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806 |
Robert Conger | officer: SVP, Technology & Strategy | 901 EXPLORER BLVD, HUNTSVILLE AL 35806 |
Eduard Scheiterer | officer: SVP, Research & Development | 901 EXPLORER DRIVE, HUNTSVILLE AL 35806 |
From GuruFocus
By Business Wire • 10-10-2023
By Business Wire • 09-05-2023
By Business Wire • 10-11-2023
By Business Wire • 10-17-2023
By Business Wire • 10-17-2023
By Business Wire • 08-16-2023
By Business Wire • 11-08-2023
By Business Wire • 08-29-2023
By Business Wire • 08-10-2023
By Business Wire • 11-09-2023
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.