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Citizens Financial Services (Citizens Financial Services) Long-Term Debt & Capital Lease Obligation : $283.57 Mil (As of Mar. 2024)


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What is Citizens Financial Services Long-Term Debt & Capital Lease Obligation?

Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Citizens Financial Services's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $283.57 Mil.

Warning Sign:

Citizens Financial Services Inc has been issuing new debt. Over the past 3 years, it issued USD 137.699 million of debt. But overall, its debt level is acceptable.

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. Citizens Financial Services's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $283.57 Mil. Citizens Financial Services's Total Assets for the quarter that ended in Mar. 2024 was $2,921.10 Mil. Citizens Financial Services's LT-Debt-to-Total-Asset for the quarter that ended in Mar. 2024 was 0.10.

Citizens Financial Services's LT-Debt-to-Total-Asset declined from Mar. 2023 (0.12) to Mar. 2024 (0.10). It may suggest that Citizens Financial Services is progressively becoming less dependent on debt to grow their business.


Citizens Financial Services Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Citizens Financial Services'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.

* Premium members only.

Citizens Financial Services Long-Term Debt & Capital Lease Obligation Chart

Citizens Financial Services Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Long-Term Debt & Capital Lease Obligation
Get a 7-Day Free Trial Premium Member Only Premium Member Only 85.12 88.84 73.98 257.28 322.04

Citizens Financial Services Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Long-Term Debt & Capital Lease Obligation Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 288.06 318.20 316.15 322.04 283.57

Citizens Financial Services 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.


Citizens Financial Services  (NAS:CZFS) 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.

Citizens Financial Services's LT-Debt-to-Total-Asset ratio for the quarter that ended in Mar. 2024 is calculated as:

LT-Debt-to-Total-Asset (Q: Mar. 2024 )=Long-Term Debt & Capital Lease Obligation (Q: Mar. 2024 )/Total Assets (Q: Mar. 2024 )
=283.565/2921.103
=0.10

* 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


Citizens Financial Services Long-Term Debt & Capital Lease Obligation Related Terms

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Citizens Financial Services (Citizens Financial Services) Business Description

Industry
Traded in Other Exchanges
N/A
Address
15 South Main Street, Mansfield, PA, USA, 16933
Citizens Financial Services Inc is a Pennsylvania-chartered bank and trust company. The company through its banking subsidiary provides banking activities and services for individual, business, governmental and institutional customers. Its activities and services principally include checking, savings, and time deposit accounts; residential, commercial and agricultural real estate, commercial and industrial, state and political subdivision and consumer loans; and a variety of other specialized financial services. The Trust and Investment division of the Bank offers a full range of client investment, estate, mineral management and retirement services.
Executives
R Joseph Landy director 741 SOUTH MAIN STREET, ATHENS PA 18810
Stephen J Guillaume officer: SENIOR VICE PRESIDENT POST OFFICE BOX 43, LIBERTY PA 16930
Robert Joseph Marino director 407 33RD STREET S, BRIGANTINE NJ 08203
Richards David Z Jr director, officer: EXECUTIVE VICE PRESIDENT 209 TWIGS LANE, STATE COLLEGE PA 16801
Rinaldo A Depaola director 50 REEL STREET, SAYRE PA 18840
John D Behm other: Subsidiary Director 2114 BLUE STEM DRIVE, NEW HOPE PA 18938-2311
Leeann Gephart officer: EXECUTIVE VICE PRESIDENT 2260 HEIM HILL ROAD, MONTOURSVILLE PA 17754
Painter John P Ii director 571 HOWLAND HILL ROAD, WESTFIELD PA 16950
Thomas E. Freeman director 831 KELLYTOWN ROAD, MANSFIELD PA 16933
Janie M Hilifger director 830 CANADA ROAD, COVINGTON PA 16917
Graham Roger C Jr director 1281 BRAGUE ROAD, CANTON PA 17724
Christopher W Kunes director 3896 PENNS VALLEY ROAD, SPRING MILLS PA 16875
Dwight D Rohrer officer: SENIOR VICE PRESIDENT 2385 JUNCTION ROAD, MANHEIM PA 17545
Marina K Smalanskas officer: SENIOR VICE PRESIDENT 1445 ROCKY WAY, MECHANICSBURG PA 17055
Sean P Mckinney officer: VICE PRESIDENT 11 TOWER LANE, GRANTVILLE PA 17028