What is The First Marblehead 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. The First Marblehead's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was $0.00 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. The First Marblehead's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was $0.00 Mil. The First Marblehead's Total Assets for the quarter that ended in Mar. 2016 was $191.65 Mil. The First Marblehead's LT-Debt-to-Total-Asset for the quarter that ended in Mar. 2016 was 0.00.
The First Marblehead Long-Term Debt & Capital Lease Obligation Historical Data
The historical data trend for The First Marblehead'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.
The First Marblehead Long-Term Debt & Capital Lease Obligation Chart
The First Marblehead 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.
The First Marblehead (NYSE:FMD) 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.
The First Marblehead's LT-Debt-to-Total-Asset ratio for the quarter that ended in Mar. 2016 is calculated as:
* 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
The First Marblehead Long-Term Debt & Capital Lease Obligation Related Terms
Thank you for viewing the detailed overview of The First Marblehead's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
The First Marblehead (The First Marblehead) Business Description
The First Marblehead Corp was formed as a limited partnership in 1991 and was incorporated in Delaware in August 1994. It is a specialty finance company focused on the education financing marketplace in the United States. It provides loan programs on behalf of its lender clients for K-12, undergraduate and graduate students and for college graduates seeking to refinance private education loan obligations, as well as tuition planning, tuition billing, refund management and payment technology services. It provides a fully integrated suite of services through its Monogram loan product service platform, which it refer to as its Monogram platform, as well as certain services on a stand-alone, fee-for-service basis. These loan programs are designed to be marketed to prospective student borrowers and their families directly or through educational institutions and to generate portfolios which might be held by the originating lender or financed in the capital markets. It offers a fully integrated suite of services, including its new Monogram loan product, as well as certain services on a standalone, fee-for-service basis. In addition, it provides administrative and other services to securitization trusts that it has facilitated and asset servicing to the third-party owner of certain securitization trusts. The Company's bank subsidiary, Union Federal Savings Bank is a federally chartered thrift that offers residential and commercial mortgage loans, and certain other banking products. Through its Monogram product offering, it enables lenders to offer borrowers private education loans with competitive terms and clear pricing alternatives, but which are also structured to align product options made available to qualified applicants with their credit risk. The Monogram product integrates all of its service offerings, including program design, marketing support, loan origination and portfolio management. The product enables its lender clients to customize their loan programs to meet their risk control and return objectives without a third-party guaranty. Specifically, the client could customize the range of loan terms offered to their qualified applicants, such as repayment options, loan limits and borrower pricing. The Monogram product is based on its proprietary origination risk score model, which was independently reviewed by a credit bureau. It helps clients design their private education loan programs. The Company's design approach begins with a standard set of pricing options, legal agreements and third-party relationships that it could then customize for its clients in order to satisfy their particular needs. The Company's systems have been designed to provide applicants with consumer protection disclosures required by law and regulation, as well as information helpful for making informed decisions about private education loans. It operates in a competitive environment.FIRSTMARBLEHEAD, the checkered logo, MONOGRAM, MONTICELLO STUDENT LOA
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FMD has been successfully added to your 