Aegon NV ADR carries $5 billion in debt, with a debt-to-equity ratio of 0.6—considered reasonable within its industry. Its current ratio stands at 1.36, indicating solid short-term liquidity typical for financial firms. While manageable now, this level of debt could serve as a strategic tool for funding high-return growth initiatives. However, the company's net profit margin is a mere 0.1%, signaling a fragile profit base that could be wiped out by even a slight revenue dip. This margin is significantly below industry averages. Similarly, its net operating margin is just 0.11%, meaning that for every $100 in revenue, Aegon generates only about 11 cents in operating income. Such slim margins highlight the need for a sharper competitive edge to sustain profitability.
Main Points
Investors should be aware that Aegon NV ADR's projected December debt levels include a significant
216M in capital lease obligations, which could amplify leverage risks if the company's cash flow remains under pressure. With total current liabilities at
7.3B and total cash from financing activities showing a substantial outflow of
-1.8B, maintaining a cautious stance on leverage is advisable, especially given the industry’s volatile environment.
Aegon NV financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Aegon NV, including all of Aegon NV's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Aegon NV assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Aegon NV debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
How important is Aegon NV's Liquidity
Aegon NV
financial leverage refers to using borrowed capital as a funding source to finance Aegon NV ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aegon NV financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Aegon NV's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Aegon NV's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Aegon NV's total debt and its cash.
What is driving Aegon NV Investor Appetite?
The small drop in market price for the last few months could raise concerns from stockholders as the firm is trading at a share price of
7.47 on
7,529,105 in volume. The company directors and management did not add much value to Aegon NV investors in
October. However, diversifying your holdings with Aegon NV ADR or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.03. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Liabilities Breakdown
| Liabilities And Stockholders Equity | 262.21 Billion |
| Non Current Liabilities Total | 333.98 Billion |
| Total Current Liabilities | 7.69 Billion |
| Non Current Liabilities Other | 0.0 |
A penny saved is a penny earned, and for Aegon NV ADR, managing debt levels is crucial as December approaches. With long-term debt totaling approximately $4.7 billion and total liabilities reaching around $318.1 billion, leverage remains significant relative to its market cap of $11.82 billion. Despite solid cash flow from operations at $762 million and a free cash flow of $711 million, the company's risk profile shows a probability of bankruptcy near 39.48%, highlighting the importance of monitoring debt trends. Investors should note that the company's leverage ratios and debt obligations could impact its financial stability, especially given its industry’s sensitivity to economic shifts. Staying alert to changes in debt levels and cash flow dynamics will be key for making informed decisions on Aegon NV ADR..
Will Aegon continue to rise?
Aegon NV ADR’s recent decline in Total Risk Alpha to -0.13 hints at some upcoming challenges. This change suggests the stock may be losing positive momentum, possibly leading to a price dip soon. Investors should monitor this trend closely, as it could mean recent gains might not be sustainable. It’s wise to stay cautious until clearer signs of stability appear. The stock also shows very low volatility, with a skewness of -0.41 and kurtosis of -0.4, which can help in timing entries and exits. During downturns, increased market volatility often impacts Aegon NV’s price, adding pressure on investors. This environment may prompt portfolio adjustments, as falling prices encourage reallocating assets to manage risk.
Our Final Takeaway
When is the right time to buy or sell Aegon NV ADR? Buying stocks such as Aegon NV isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Aegon NV.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Aegon NV ADR. Please refer to our
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