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CHS (CHSCN.PFD) Long-Term Debt & Capital Lease Obligation : $1,744.50 Mil (As of Feb. 2019)


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What is CHS 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. CHS's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2019 was $1,744.50 Mil.

Warning Sign:

CHS Inc has been issuing new debt. Over the past 3 years, it issued USD315.007 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. CHS's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2019 was $1,744.50 Mil. CHS's Total Assets for the quarter that ended in Feb. 2019 was $16,936.17 Mil. CHS's LT-Debt-to-Total-Asset for the quarter that ended in Feb. 2019 was 0.10.

CHS's LT-Debt-to-Total-Asset declined from Feb. 2018 (0.11) to Feb. 2019 (0.10). It may suggest that CHS is progressively becoming less dependent on debt to grow their business.


CHS Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for CHS'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.

CHS Long-Term Debt & Capital Lease Obligation Chart

CHS Annual Data
Trend Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Long-Term Debt & Capital Lease Obligation
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,403.66 1,260.81 2,082.88 2,023.45 1,762.69

CHS Quarterly Data
May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19
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 1,915.84 1,905.52 1,762.69 1,739.96 1,744.50

CHS 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.


CHS  (NAS:CHSCN.PFD) 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.

CHS's LT-Debt-to-Total-Asset ratio for the quarter that ended in Feb. 2019 is calculated as:

LT-Debt-to-Total-Asset (Q: Feb. 2019 )=Long-Term Debt & Capital Lease Obligation (Q: Feb. 2019 )/Total Assets (Q: Feb. 2019 )
=1744.502/16936.174
=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


CHS Long-Term Debt & Capital Lease Obligation Related Terms

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CHS Business Description

Industry
Traded in Other Exchanges
N/A
Address
5500 Cenex Drive, Inver Grove Heights, MN, USA, 55077
CHS Inc is an integrated agricultural enterprise, that provides grain, food and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles to the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Maximum revenue is generated from Ag segment.