What is Freescale Semiconductor 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. Freescale Semiconductor's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $5,060 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. Freescale Semiconductor's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $5,060 Mil. Freescale Semiconductor's Total Assets for the quarter that ended in Sep. 2015 was $3,159 Mil. Freescale Semiconductor's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2015 was 1.60.
Freescale Semiconductor Long-Term Debt & Capital Lease Obligation Historical Data
The historical data trend for Freescale Semiconductor'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.
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Freescale Semiconductor Long-Term Debt & Capital Lease Obligation Chart
Freescale Semiconductor 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.
Freescale Semiconductor (NYSE:FSL) 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.
Freescale Semiconductor's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2015 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
Freescale Semiconductor Long-Term Debt & Capital Lease Obligation Related Terms
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Freescale Semiconductor (Freescale Semiconductor) Business Description
Freescale Semiconductor Ltd was incorporated in Delaware on December 3, 2003. The Company provides embedded processors such as microcontrollers and digital networking processors. Its embedded processors, along with its analog, sensor and radio frequency devices, as well as a full suite of software and design tools, it provides integrated embedded processing solutions. The Company's business is organized around five principal product groups: Microcontrollers, Digital Networking, Automotive Microcontrollers, Analog and Sensors, and Radio Frequency. The Company's embedded processor products include Microcontrollers, single and multicore MPUs, Digital Signal Controllers, applications processors and Digital Signal Processors. It also offers Radio Frequency, power management, motor drivers, high voltage actuators, analog, mixed-signal devices and precision sensors. The Company's Communications Processors product portfolio includes 32-bit and 64-bit offerings ranging from a single core to 28- and 45-nanometer multicore QorIQ communications processors. It's Microcontrollers product portfolio ranges from ultra-low power, low-end 8-bit products to higher performance 16-bit and 32-bit products with on-board flash memory such as the Qorivva product line. Its wireless products utilize and support multiple standards and frequencies, including the IEEE standard 802.15.4, and sub-1 GHz solutions in its solutions for medical devices, smart meters and smart energy, consumer appliances, Radio Frequency remote controls and home automation. The Company provides Applications Processors such as ARM-based i.MX application processors with integrated audio, video and graphics capability. Its Digital Signal Processors product portfolio includes single-core to multicore based on the StarCore architecture. Its Analog and Mixed-Signal products portfolio includes driving actuators such as in motors, valves, and lights, switching large currents, regulating power to electronic components in a system, charging and cell balancing batteries and providing precision sense and control interfaces for complex analog systems. The Company's Xtrinsic smart sensor platforms combine inertial sensors and embedded processors with connectivity and power management supported by a reference software toolset. The Company's Radio Frequency power portfolio includes solutions from 1 watt to more than 1 kilowatt. Its low power portfolio provides a mix of Radio Frequency small signal and low power products. The Company sells its products directly to OEMs, distributors, original design manufacturers and contract manufacturers. It owns and operates five manufacturing facilities, of which three are wafer fabrication facilities and two are assembly and test facilities.
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