SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'Long-Term Debt' FNMA (Federal National Mortgage Association Fannie Mae) Lon
GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Federal National Mortgage Association Fannie Mae (OTCPK:FNMA) » Definitions » Long-Term Debt & Capital Lease Obligation

Federal National Mortgage Association Fannie Mae (Federal National Mortgage Association Fannie Mae) Long-Term Debt & Capital Lease Obligation

: $4,205,404 Mil (As of Dec. 2023)
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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. Federal National Mortgage Association Fannie Mae's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $4,205,404 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. Federal National Mortgage Association Fannie Mae's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $4,205,404 Mil. Federal National Mortgage Association Fannie Mae's Total Assets for the quarter that ended in Dec. 2023 was $4,325,437 Mil. Federal National Mortgage Association Fannie Mae's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.97.

Federal National Mortgage Association Fannie Mae's LT-Debt-to-Total-Asset declined from Dec. 2022 (0.98) to Dec. 2023 (0.97). It may suggest that Federal National Mortgage Association Fannie Mae is progressively becoming less dependent on debt to grow their business.

Federal National Mortgage Association Fannie Mae Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Federal National Mortgage Association Fannie Mae'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.

Federal National Mortgage Association Fannie Mae Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Long-Term Debt & Capital Lease Obligation
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3,440,724.00 3,923,563.00 4,155,396.00 4,211,684.00 4,205,404.00

Federal National Mortgage Association Fannie Mae Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Long-Term Debt & Capital Lease Obligation 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 Premium Member Only Premium Member Only Premium Member Only 4,211,684.00 4,216,799.00 4,216,722.00 4,217,517.00 4,205,404.00

Federal National Mortgage Association Fannie Mae 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.

Federal National Mortgage Association Fannie Mae  (OTCPK:FNMA) 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.

Federal National Mortgage Association Fannie Mae'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 )
=4205404/4325437
=0.97

* 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

Federal National Mortgage Association Fannie Mae Long-Term Debt & Capital Lease Obligation Related Terms

Thank you for viewing the detailed overview of Federal National Mortgage Association Fannie Mae's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.

Federal National Mortgage Association Fannie Mae (Federal National Mortgage Association Fannie Mae) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Federal National Mortgage Association Fannie Mae (OTCPK:FNMA) » Definitions » Long-Term Debt & Capital Lease Obligation
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RKT ECPG GHLD FMCC UWMC VEL LDI BETR GHI WD COOP PFSI NSE:LICHSGFIN NSE:PNBHOUSING LSE:OSB LSE:PAG BOM:543335 TSX:FN BOM:541988 BOM:535789
Traded in Other Exchanges
FNMFN.PFD:USA FNMFM.PFD:USA FNMAT.PFD:USA FNMAS.PFD:USA FNMAP.PFD:USA FNMAO.PFD:USA FNMAN.PFD:USA FNMAM.PFD:USA FNMAL.PFD:USA FNMAK.PFD:USA FNMAJ.PFD:USA FNMAI.PFD:USA FNMAH.PFD:USA FNMAG.PFD:USA FNM:Germany
Address
1100 15th Street, NW, Midtown Center, Washington, DC, USA, 20005
Website
https://www.fanniemae.com
Federal National Mortgage Association Fannie Mae is a source of financing for mortgages in the United States. The company has two segments. The Single-Family business operates in the secondary mortgage market relating to single-family mortgage loans, which are secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating mainly to multifamily mortgage loans, which are secured by properties containing five or more residential units. The majority of the revenue is derived from the Single-Family segment.
Executives
Chetlur S Ragavan director 230 PARK AVENUE, NEW YORK NY 10169
Ramon Richards officer: EVP & CIO C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Michael A. Seelig director C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Priscilla Almodovar director, officer: CEO 45 WEST 10TH STREET, NEW YORK NY 10011
Anthony Moon officer: EVP & CRO C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Andrew M Brammer officer: VP & Interim CRO C/O FANNIE MAE, 110015TH STREET, NW, WASHINGTON DC 20005
James L Holmberg officer: SVP & Controller C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Evans H. Malloy Iii officer: EVP-Single-family C/O FANNIE MAE, 1100 15TH STREET NW, WASHINGTON DC 20005
Christopher J Brummer director C/O FANNIE MAE, 1100 15TH STREET NW, WASHINGTON DC 20005
Johnson Simon H R director C/O FANNIE MAE, 1100 15TH STREET NW, WASHINGTON DC 20005
Michele M Evans officer: EVP--Multifamily C/O FANNIE MAE, 1100 15TH STREET NW, WASHINGTON DC 20005
Bair Sheila Colleen director 6903 ROCKLEDGE DRIVE, SUITE 1500, BETHESDA MD 20817
Stergios Theologides officer: EVP, GC & Corporate Secretary CORELOGIC, INC., 40 PACIFICA, SUITE 900, IRVINE CA 92618
Karin Kimbrough director C/O FANNIE MAE, 1100 15TH STREET NW, WASHINGTON DC 20005
Stephen H Mcelhennon officer: interim GC C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005