Afterpay (Afterpay) LT-Debt-to-Total-Asset : 0.42 (As of Jun. 2021)

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What is Afterpay LT-Debt-to-Total-Asset?

LT Debt to Total Assets 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 Obligationdivide by its Total Assets. Afterpay's long-term debt to total assests ratio for the quarter that ended in Jun. 2021 was 0.42.

Afterpay's long-term debt to total assets ratio increased from Jun. 2020 (0.29) to Jun. 2021 (0.42). It may suggest that Afterpay is progressively becoming more dependent on debt to grow their business.

Afterpay LT-Debt-to-Total-Asset Historical Data

The historical data trend for Afterpay's LT-Debt-to-Total-Asset 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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Afterpay LT-Debt-to-Total-Asset Chart

Afterpay Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

LT-Debt-to-Total-Asset

0.20

0.41

0.06

0.29

0.42

Afterpay Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21
LT-Debt-to-Total-Asset	Get a 7-Day Free Trial				0.06	0.30	0.29	0.06	0.42

Afterpay LT-Debt-to-Total-Asset Calculation

Afterpay's Long-Term Debt to Total Asset Ratio for the fiscal year that ended in Jun. 2021 is calculated as

LT Debt to Total Assets (A: Jun. 2021 )	=	Long-Term Debt & Capital Lease Obligation (A: Jun. 2021 )	/	Total Assets (A: Jun. 2021 )
	=	1007.937	/	2382.437
	=	0.42

Afterpay's Long-Term Debt to Total Asset Ratio for the quarter that ended in Jun. 2021 is calculated as

LT Debt to Total Assets (Q: Jun. 2021 )	=	Long-Term Debt & Capital Lease Obligation (Q: Jun. 2021 )	/	Total Assets (Q: Jun. 2021 )
	=	1007.937	/	2382.437
	=	0.42

Afterpay (OTCPK:AFTPY) LT-Debt-to-Total-Asset 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.

Afterpay LT-Debt-to-Total-Asset Related Terms

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Afterpay (Afterpay) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Afterpay Ltd (OTCPK:AFTPY) » Definitions » LT-Debt-to-Total-Asset

Comparable Companies

Traded in Other Exchanges

N/A

Address

406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000

Website

https://www.afterpay.com

Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.