CMC has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
CMC 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. Commercial Metals Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was $1,126 Mil.
Warning Sign:
Commercial Metals Co has been issuing new debt. Over the past 3 years, it issued USD 24.21 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. Commercial Metals Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was $1,126 Mil. Commercial Metals Co's Total Assets for the quarter that ended in Feb. 2024 was $6,662 Mil. Commercial Metals Co's LT-Debt-to-Total-Asset for the quarter that ended in Feb. 2024 was 0.17.
Commercial Metals Co's LT-Debt-to-Total-Asset declined from Feb. 2023 (0.17) to Feb. 2024 (0.17). It may suggest that Commercial Metals Co is progressively becoming less dependent on debt to grow their business.
The historical data trend for Commercial Metals Co'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.
Commercial Metals Co Annual Data | |||||||||||||||||||||
Trend | Aug14 | Aug15 | Aug16 | Aug17 | Aug18 | Aug19 | Aug20 | Aug21 | Aug22 | Aug23 | |||||||||||
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | 1,227.21 | 1,065.54 | 1,015.42 | 1,113.25 | 1,114.28 |
Commercial Metals Co Quarterly Data | ||||||||||||||||||||
May19 | Aug19 | Nov19 | Feb20 | May20 | Aug20 | Nov20 | Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | Feb23 | May23 | Aug23 | Nov23 | Feb24 | |
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | 1,099.73 | 1,102.88 | 1,114.28 | 1,120.47 | 1,126.22 |
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.
Commercial Metals Co (NYSE:CMC) 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.
Commercial Metals Co's LT-Debt-to-Total-Asset ratio for the quarter that ended in Feb. 2024 is calculated as:
LT-Debt-to-Total-Asset (Q: Feb. 2024 ) | = | Long-Term Debt & Capital Lease Obligation (Q: Feb. 2024 ) | / | Total Assets (Q: Feb. 2024 ) |
= | 1126.216 | / | 6662.265 | |
= | 0.17 |
* 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 Commercial Metals Co's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
Barbara Smith | director, officer: Chairman, President & CEO | 6565 N. MACARTHUR BLVD., SUITE 800, IVING TX 75039 |
Stephen William Simpson | officer: SVP, N. American Steel Group | 6565 NORTH MACARTHUR BLVD., SUITE 800, IRVING TX 75039 |
Peter R Matt | director | 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039 |
Lindsay L Sloan | officer: VP, Chief Accounting Officer | 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039 |
Ty L Garrison | officer: SVP Operations | 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039 |
Robert S Wetherbee | director | MINERALS TECHNOLOGIES INC, 622 THIRD AVENUE 38TH FL, NEW YORK NY 10017 |
John R Mcpherson | director | 1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
Tracy L Porter | officer: EVP & Chief Operating Officer | 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039 |
Gary E Mccullough | director | 231 N. MARTINGALE ROAD, SCHAUMBURG IL 60173 |
Jody K Absher | officer: VP General Counsel & Corp Sec | 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039 |
Paul James Lawrence | officer: VP & Chief Financial Officer | 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039 |
Adam R Hickey | officer: VP & Chief Accounting Officer | 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039 |
Lisa M Barton | director | AMERICAN ELECTRIC POWER COMPANY, INC., 1 RIVERSIDE PLAZA, COLUMBUS OH 43215 |
J David Smith | director | GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084 |
Charles L Szews | director | 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039 |
From GuruFocus
By Marketwired • 07-17-2023
By Margaret Moran • 06-13-2023
By GuruFocus Research • 10-25-2023
By GuruFocus Research • 07-04-2023
By GuruFocus Research • 06-29-2023
By PRNewswire • 09-12-2023
By PRNewswire • 12-07-2023
By GuruFocus Research • 01-16-2024
By GuruFocus Research • 10-24-2023
By PRNewswire • 07-18-2023
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.