First Niles Financial (First Niles Financial) Long-Term Debt & Capital Lease Obligation : $0.00 Mil (As of Jun. 2018)

First Niles Financial Long-Term Debt & Capital Lease Obligation Chart

First Niles Financial Annual Data
	Trend	Dec99	Dec00	Dec01	Dec02	Dec03	Dec04	Dec05	Dec13	Dec14	Dec15
Long-Term Debt & Capital Lease Obligation		Get a 7-Day Free Trial					20.50	20.50	24.00	25.00	26.50

First Niles Financial Semi-Annual Data
	Jun99	Dec99	Jun00	Dec00	Jun01	Dec01	Jun02	Dec02	Jun03	Dec03	Jun04	Dec04	Jun05	Dec05	Jun06	Dec13	Dec14	Dec15	Jun17	Jun18
Long-Term Debt & Capital Lease Obligation	Get a 7-Day Free Trial															24.00	25.00	26.50	-	-

First Niles Financial Long-Term Debt & Capital Lease Obligation Calculation

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.

First Niles Financial  (OTCPK:FNFI) 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.

First Niles Financial's LT-Debt-to-Total-Asset ratio for the quarter that ended in Jun. 2018 is calculated as:

* 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 company’s 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

First Niles Financial Long-Term Debt & Capital Lease Obligation Related Terms

Thank you for viewing the detailed overview of First Niles Financial's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.

First Niles Financial (First Niles Financial) Business Description