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SHF Holdings (NAS:SHFS) Long-Term Debt & Capital Lease Obligation

: $12.67 Mil (As of Sep. 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. SHF Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $12.67 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. SHF Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $12.67 Mil. SHF Holdings's Total Assets for the quarter that ended in Sep. 2023 was $72.38 Mil. SHF Holdings's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2023 was 0.18.

SHF Holdings's LT-Debt-to-Total-Asset increased from Sep. 2022 (0.00) to Sep. 2023 (0.18). It may suggest that SHF Holdings is progressively becoming more dependent on debt to grow their business.


SHF Holdings Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for SHF 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.

* Premium members only.

SHF Holdings Annual Data
Trend Dec20 Dec21 Dec22
Long-Term Debt & Capital Lease Obligation
- - 1.01

SHF Holdings Quarterly Data
Dec20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Long-Term Debt & Capital Lease Obligation Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 1.01 14.25 13.40 12.67

SHF Holdings 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.


SHF Holdings  (NAS:SHFS) 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.

SHF Holdings's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2023 is calculated as:

LT-Debt-to-Total-Asset (Q: Sep. 2023 )=Long-Term Debt & Capital Lease Obligation (Q: Sep. 2023 )/Total Assets (Q: Sep. 2023 )
=12.667/72.378
=0.18

* 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


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SHF Holdings (NAS:SHFS) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » SHF Holdings Inc (NAS:SHFS) » Definitions » Long-Term Debt & Capital Lease Obligation
Traded in Other Exchanges
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Address
1526 Cole Boulevard, Suite 250, Golden, CO, USA, 80410
SHF Holdings Inc is a financial services provider to cannabis-related businesses. It offers reliable access to banking solutions for cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. The group, through its financial institution clients, implements accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Its services include Program Management Support, Customer Lead Generation, Ongoing Program Auditing, and Compliance Monitoring among others.
Executives
Dan Roda officer: EVP / Chief Operating Officer 1526 COLE BLVD, SUITE 250, GOLDEN CO 80401
Jonathan Summers director 909 BANNOCK STREET, DENVER CO 80204
Sundie Seefried officer: Chief Executive Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Richard Carleton director 5269 W. 62ND AVENUE, ARVADA CO 80003
John Darwin director 909 BANNOCK STREET, DENVER CO 80204
Jonathon Niehaus director 5269 W. 62ND AVENUE, ARVADA CO 80003
Jennifer Meyers director 5269 W. 62ND AVENUE, ARVADA CO 80003
Donald Emmi officer: Chief Legal Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Doug Fagan director 1526 COLE BLVD, SUITE 250, GOLDEN CO 80401
Jim Dennedy officer: Chief Financial Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Partner Colorado Credit Union 10 percent owner 6221 SHERIDAN BLVD, ARVADA CO 80003
Karl Racine director 5269 W. 62ND AVENUE, ARVADA CO 80003
Tyler Beuerlein officer: Chief Business Develop Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Midtown East Management Nl Llc 10 percent owner ONE ROCKEFELLER PLAZA, 32ND FLOOR, NEW YORK NY 10020
Atalaya Special Purpose Investment Fund Ii Lp 10 percent owner C/O ATALAYA CAPITAL MANAGEMENT LP, ONE ROCKEFELLER PLAZA, 32ND FLOOR, NEW YORK NY 10020