Debt Company – CTXETG http://ctxetg.com/ Mon, 21 Nov 2022 14:17:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://ctxetg.com/wp-content/uploads/2021/06/icon-150x150.png Debt Company – CTXETG http://ctxetg.com/ 32 32 A look at Coca-Cola’s debt – Coca-Cola (NYSE:KO) https://ctxetg.com/a-look-at-coca-colas-debt-coca-cola-nyseko/ Mon, 21 Nov 2022 14:11:11 +0000 https://ctxetg.com/a-look-at-coca-colas-debt-coca-cola-nyseko/ Over the past three months, shares of Coca-Cola’s Inc. KO down 5.66%. Before we understand the importance of debt, let’s take a look at how much debt Coca-Cola has. Coca-Cola’s debt According to Coca-Cola’s most recent balance sheet released on October 26, 2022, total debt stands at $39.59 billion, with $35.46 billion in long-term debt […]]]>

Over the past three months, shares of Coca-Cola’s Inc. KO down 5.66%. Before we understand the importance of debt, let’s take a look at how much debt Coca-Cola has.

Coca-Cola’s debt

According to Coca-Cola’s most recent balance sheet released on October 26, 2022, total debt stands at $39.59 billion, with $35.46 billion in long-term debt and $4.12 billion in current debt. After adjusting for $10.13 billion in cash equivalents, the company has net debt of $29.46 billion.

Let’s define some of the terms we used in the paragraph above. Current debt is the part of a company’s debt that is due within one year, while long-term debt is the portion due for more than one year. Cash equivalents includes cash and all liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.

Investors look at the debt-to-equity ratio to understand a company’s financial leverage. Coca-Cola has total assets of $92.47 billion, bringing the debt ratio to 0.43. Generally speaking, a debt ratio greater than 1 means that a large part of the debt is financed by assets. As the debt-to-equity ratio increases, the risk of loan default also increases if interest rates were to rise. Different industries have different tolerance thresholds for debt ratios. For example, a debt ratio of 35% may be higher for one industry, but normal for another.

Debt size

Besides equity, debt is an important factor in a company’s capital structure and contributes to its growth. Due to its lower cost of funding than equity, it becomes an attractive option for executives trying to raise capital.

Interest payment obligations can impact the company’s cash flow. Equity holders can retain excess profits, generated by debt capital, when companies use debt capital for their business operations.

Looking for stocks with low leverage ratios? Check out Benzinga Pro, a market research platform that gives investors near-instant access to dozens of stock market metrics, including leverage ratio. Click here to find out more.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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Is Optiemus Infracom (NSE:OPTIEMUS) using too much debt? https://ctxetg.com/is-optiemus-infracom-nseoptiemus-using-too-much-debt/ Sat, 19 Nov 2022 03:37:46 +0000 https://ctxetg.com/is-optiemus-infracom-nseoptiemus-using-too-much-debt/ Warren Buffett said: “Volatility is far from synonymous with risk. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We note that Optiemus Infracom Limited (NSE: OPTIEMUS) has debt on its balance sheet. But should shareholders worry about its use of […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We note that Optiemus Infracom Limited (NSE: OPTIEMUS) has debt on its balance sheet. But should shareholders worry about its use of debt?

What risk does debt carry?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. In the worst case, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. When we look at debt levels, we first consider cash and debt levels, together.

Check opportunities and risks within the electronics industry IN.

What is Optiemus Infracom’s debt?

As you can see below, at the end of September 2022, Optiemus Infracom had a debt of ₹863.5 million, up from ₹348.5 million a year ago. Click on the image for more details. However, he also had ₹371.7 million in cash, and hence his net debt is ₹491.8 million.

NSEI: OPTIEMUS Debt to Equity History November 19, 2022

How healthy is Optiemus Infracom’s balance sheet?

The latest balance sheet data shows that Optiemus Infracom had liabilities of ₹4.18 billion due within a year, and liabilities of ₹520.2 million falling due thereafter. On the other hand, it had a cash position of ₹371.7 million and ₹3.09 billion in receivables due within a year. It therefore has liabilities totaling ₹1.24 billion more than its cash and short-term receivables, combined.

Of course, Optiemus Infracom has a market cap of ₹18.4 billion, so those liabilities are probably manageable. That said, it is clear that we must continue to monitor its record, lest it deteriorate. The balance sheet is clearly the area to focus on when analyzing debt. But it is the profits of Optiemus Infracom that will influence the balance sheet in the future. So, when considering debt, it is definitely worth looking at the earnings trend. Click here for an interactive preview.

Over 12 months, Optiemus Infracom reported revenue of ₹8.3 billion, a gain of 206%, despite reporting no earnings before interest and tax. That’s practically the hole-in-one of revenue growth!

Caveat Emptor

While we can certainly appreciate Optiemus Infracom’s revenue growth, its earnings before interest and tax (EBIT) loss is less than ideal. Indeed, it lost ₹207 million in EBIT. When we look at this and recall the liabilities on its balance sheet, versus cash, it seems unwise to us that the company has debt. Quite frankly, we think the track record falls short, although it could improve over time. Another reason for caution is that it has lost ₹581 million in negative free cash flow in the last twelve months. So, to be frank, we think it’s risky. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks reside on the balance sheet, far from it. Be aware that Optiemus Infracom displays 2 warning signs in our investment analysis you should know…

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

Valuation is complex, but we help make it simple.

Find out if Optiemus Infracom is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Debt lending and financing are top concerns for the cannabis industry https://ctxetg.com/debt-lending-and-financing-are-top-concerns-for-the-cannabis-industry/ Wed, 16 Nov 2022 04:59:22 +0000 https://ctxetg.com/debt-lending-and-financing-are-top-concerns-for-the-cannabis-industry/ Money is on the minds of many cannabis industry executives as many sources of capital have dried up this year and the marijuana trade is looking down the barrel of a possible recession. This reality was reflected in the list of speakers at the Las Vegas cannabis conference MJBizCon this week. “There is no doubt […]]]>

Money is on the minds of many cannabis industry executives as many sources of capital have dried up this year and the marijuana trade is looking down the barrel of a possible recession.

This reality was reflected in the list of speakers at the Las Vegas cannabis conference MJBizCon this week.

“There is no doubt that there are significant headwinds. In the last three quarters alone, the Fed has raised interest rates by more than 300 basis points,” said Steve Ham, managing partner at Altmore Capital, who spoke at the conference on Tuesday. “It’s time to tighten our belts. You have to think about getting to the other side of the river. Inflation hits everyone.

On top of that, investors are increasingly savvy about the cannabis industry as a whole — and asking entrepreneurs harder questions than ever before, said Arun Kurichety, COO and General Counsel of Petalfast. , after a panel moderator cited a report that nine-figure capital cannabis increases are down 78% this year.

Which begs the question: where and how can cannabis companies get money to get by if they need it?

The answer: Wherever they can. And a lot of those available funds are convertible debt with onerous terms.

“A lot of the terms of the deal are much more difficult for the company, and lenders and investors have more ability to leverage,” Kurichety said.

This has led to less favorable deals for borrowers in the broader cannabis industry, many of whom are unable to repay expensive loans, he said.

But for some businesses, loans are still a better option.

“Debt is like dating, while equity is like marriage,” joked Sahar Ayinehsazian, a partner at law firm Vicente Sederberg, which opposes marijuana companies that sell marijuana. holdings for a short-term financial boost.

But, she admitted, equity buyers are much more readily available than well-structured loans.

Entrepreneurs can also take more creative approaches to accessing finance.

One option for cannabis companies that hold state or local licenses, Ham said, is to use the business license itself as collateral for a loan.

Other options include sale-leaseback agreements if a company owns property, noted Sherri Altshuler, a partner at Canadian law firm Aird Berlis.

And the Department of Energy oversees Property Assessed Clean Energy (PACE) funding loans, said Steve Lustberg, the managing partner of Upwise Capital, which has previously been operated by several major multistate cannabis companies.

What might not be a good idea, according to several speakers? Going public as a way to raise capital. This often creates more burdens that usually outweigh the benefits for marijuana businesses.

Industry Outlook

Most speakers were also pessimistic about the chances that federal reform legislation – specifically the SAFE Banking Act – will also open the financial floodgates for the sector, with most giving the bill at best a 50% chance of becoming law. in a close future.

“If we don’t get (the SAFE Banking Act), we won’t get anything for a while” from Congress on marijuana reform, predicted Colin Brown, chief legal officer of The Parent Company. “If it’s happening right now, it’s the worst possible time…with the economic backdrop we have. But beggars cannot choose.

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Fomento Economico Mexicano. from (BMV:FEMSAUBD) seems to be using debt quite wisely https://ctxetg.com/fomento-economico-mexicano-from-bmvfemsaubd-seems-to-be-using-debt-quite-wisely/ Sun, 13 Nov 2022 14:59:39 +0000 https://ctxetg.com/fomento-economico-mexicano-from-bmvfemsaubd-seems-to-be-using-debt-quite-wisely/ Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing […]]]>

Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. We can see that Fomento Economico Mexicano, SAB de CV (BMV:FEMSAUBD) uses debt in its business. But the more important question is: what risk does this debt create?

What risk does debt carry?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, it exists at their mercy. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more usual (but still expensive) situation is when a company has to dilute shareholders at a cheap share price just to keep debt under control. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business has is to look at its cash and debt together.

Check opportunities and risks within the beverage industry XX.

What is Fomento Económico Mexicano. debt ?

The image below, which you can click on for more details, shows that Fomento Económico Mexicano. had a debt of 173.9 billion pesos at the end of September 2022, a reduction from 190.2 billion pesos year on year. However, he has 101.1 billion Mexican pesos in cash to offset this, resulting in a net debt of approximately 72.8 billion Mexican pesos.

BMV:FEMSA UBD Debt to Equity November 13, 2022

A look at Fomento Económico Mexicano. Responsibilities of

We can see in the most recent report that Fomento Económico Mexicano. de had liabilities of 167.6 billion pesos maturing within one year and liabilities of 244.2 billion pesos due beyond. On the other hand, it had a cash position of 101.1 billion pesos and 58.1 billion pesos in receivables at less than one year. Its liabilities therefore total 252.7 billion pesos more than its cash and short-term receivables combined.

This deficit is not so serious because Fomento Económico Mexicano. de is worth a whopping 506.2 billion Mexican dollars and therefore could probably raise enough capital to shore up its balance sheet, should the need arise. However, it is always worth taking a close look at its ability to repay debt.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

While Fomento Económico Mexicano. The low debt to EBITDA ratio of 1.1 suggests modest use of debt, the fact that EBIT covered interest charges only 5.9 times last year gives us pause. We therefore recommend that you closely monitor the impact of financing costs on the company. Unfortunately, Fomento Económico Mexicano. de has seen its EBIT fall by 7.0% over the last twelve months. If this earnings trend continues, its leverage will become heavy like the heart of a polar bear looking at its only cub. When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the future profitability of the business will decide whether Fomento Económico Mexicano. can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. It is therefore worth checking how much of this EBIT is supported by free cash flow. Over the past three years, Fomento Económico Mexicano. de generated free cash flow of a very strong 82% of its EBIT, more than we expected. This positions him well to pay off debt if desired.

Our point of view

Regarding the balance sheet, the positive point for Fomento Económico Mexicano. de was the fact that he seems able to convert EBIT into free cash flow with confidence. However, our other observations were not so encouraging. For example, it looks like it has to struggle a bit to increase its EBIT. When we consider all the elements mentioned above, it seems to us that Fomento Económico Mexicano. to manage its debt fairly well. That said, the charge is heavy enough that we recommend that any shareholder keep a close eye on it. Over time stock prices tend to follow earnings per share, so if you are interested in Fomento Económico Mexicano. de, you might want to click here to see an interactive chart of its earnings per share history.

In the end, sometimes it’s easier to focus on companies that don’t even need to take on debt. Readers can access a list of growth stocks with no net debt 100% freeat present.

Valuation is complex, but we help make it simple.

Find out if Fomento Economico Mexicano. of is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Optima Automobile Group Holdings (HKG:8418) has debt but no profit; Should you be worried? https://ctxetg.com/optima-automobile-group-holdings-hkg8418-has-debt-but-no-profit-should-you-be-worried/ Thu, 10 Nov 2022 05:29:54 +0000 https://ctxetg.com/optima-automobile-group-holdings-hkg8418-has-debt-but-no-profit-should-you-be-worried/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We can see that Optima Automobile Group Holdings Limited (HKG:8418) uses debt in his business. But the more important question is: what risk does this debt create?

When is debt a problem?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. The first thing to do when considering how much debt a business has is to look at its cash and debt together.

Our analysis indicates that 8418 is potentially overvalued!

How much debt does Optima Automobile Group Holdings have?

You can click on the graph below for historical figures, but it shows that in June 2022, Optima Automobile Group Holdings had a debt of S$6.89 million, an increase of S$1.00 million , over one year. But he also has S$10.5 million in cash to offset that, meaning he has a net cash of S$3.66 million.

SEHK: 8418 Historical Debt to Equity November 10, 2022

A look at the liabilities of Optima Automobile Group Holdings

The latest balance sheet data shows that Optima Automobile Group Holdings had liabilities of S$14.7 million due within one year, and liabilities of S$7.14 million falling due thereafter. As compensation for these obligations, it had cash of S$10.5 million as well as receivables valued at S$2.16 million maturing within 12 months. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables of S$9.18 million.

Given that publicly traded shares of Optima Automobile Group Holdings are worth a total of S$121.1 million, it seems unlikely that this level of liability is a major threat. That said, it is clear that we must continue to monitor its record, lest it deteriorate. Despite its notable liabilities, Optima Automobile Group Holdings has net cash, so it’s fair to say that it doesn’t have heavy debt! When analyzing debt levels, the balance sheet is the obvious starting point. But you can’t look at debt in total isolation; since Optima Automobile Group Holdings will need revenue to repay this debt. So, when considering debt, it is definitely worth looking at the earnings trend. Click here for an interactive preview.

On a 12-month basis, Optima Automobile Group Holdings reported revenue of S$84 million, a 173% gain, although it reported no earnings before interest and tax. Its fairly obvious shareholders therefore hope for more growth!

So how risky is Optima Automobile Group Holdings?

While Optima Automobile Group Holdings lost money in earnings before interest and tax (EBIT), it actually generated positive free cash flow of S$435,000. So taking that at face value and given the net cash position, we don’t think the stock is too risky in the near term. A silver lining is that Optima Automobile Group Holdings is growing revenue quickly, making it easy to sell a growth story and raise capital if needed. But that doesn’t change our view that the stock is risky. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example, we found 2 warning signs for Optima Automobile Group Holdings (1 is potentially serious!) which you should be aware of before investing here.

In the end, it’s often best to focus on companies that aren’t in debt. You can access our special list of these companies (all with a track record of earnings growth). It’s free.

Valuation is complex, but we help make it simple.

Find out if Optima Automotive Group Holdings is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Baldwin Park Officials Helped Fraudulent Business Owner Applying For Cannabis License, Allegations Say – San Gabriel Valley Tribune https://ctxetg.com/baldwin-park-officials-helped-fraudulent-business-owner-applying-for-cannabis-license-allegations-say-san-gabriel-valley-tribune/ Sun, 06 Nov 2022 15:01:44 +0000 https://ctxetg.com/baldwin-park-officials-helped-fraudulent-business-owner-applying-for-cannabis-license-allegations-say-san-gabriel-valley-tribune/ A man who bought a cannabis manufacturing license in Baldwin Park now alleges corrupt city officials helped the seller, a front company linked to a former city lawyer, flip the license for more than $150,000 in profit in a scheme that left the new owner saddled with debt. Company owner David Ju struck a deal […]]]>

A man who bought a cannabis manufacturing license in Baldwin Park now alleges corrupt city officials helped the seller, a front company linked to a former city lawyer, flip the license for more than $150,000 in profit in a scheme that left the new owner saddled with debt.

Company owner David Ju struck a deal to buy the cannabis development deal previously granted by the city council to a company identified as Tier One Consulting in late 2018, although at the time a city ordinance prohibited any transfer of ownership interests by licensees, according to David Torres-Siegrist, Ju’s attorney.

Despite this, Torres-Siegrist alleges in a claim for damages that city officials, including then-city attorney Robert Tafoya, approved an amendment to the development agreement in April 2019 that replaced the previous owners with Ju in an apparent violation of the city’s own laws. . The amendment, signed by then-mayor Manny Lozano and Tafoya, was never presented to council for approval, according to the new lawsuit Torres-Siegrist filed against Baldwin Park.

“In the end, Mr. Ju would eventually discover that he had in fact purchased nothing but an endless cycle of collusively ‘negotiated’ debts between a current city attorney and a future attorney. of the city that was set up for failure from the start,” Torres-Siegrist wrote in the claim.

The claim, usually a precursor to a lawsuit, states that damages exceed $25,000 and will be proven at trial.

Years after the sale to Ju, Tafoya hired the listed principal for Tier One, an attorney named Anthony Willoughby II, as assistant city attorney.

Robert Tafoya, attorney for the town of Baldwin Park and legal counsel for the West Valley Water District in Rialto. (Photo by Walt Mancini/Pasadena Star-News/File)

Struggling with debt

Development agreements include annual “mitigation fees” ranging from $235,000 in year one to $330,000 in year three and beyond. These fees are due even if the business is not in operation, which makes it difficult to catch up, according to Torres-Siegrist.

Ju’s company, DJCBP Corp., finally opened for business earlier this year, but it owes the city more than $600,000 in overdue mitigation fees. Ju had experience with liquor license fees and didn’t expect to have to pay until he was up and running, Torres-Siegrist said.

“They have a system in place here which is an endless cycle of debt,” he said. “These owner-operators will never be able to get out of this debt.”

Ju’s claim alleges that city officials and figures behind Tier One “acted in concert to orchestrate a scam on an elderly man dying of cancer who poured his life savings” into the purchase after being convinced that he would find “green gold”.

Tafoya and one of the other figures involved, former Compton adviser Isaac Galvan – a middleman who made $50,000 from the sale – were recently charged with bribery in a plea deal signed by the former Baldwin adviser Park Ricardo Pacheco, a former civil servant who admitted taking bribes to support cannabis development deals.

In his plea agreement, Pacheco alleges that Tafoya, identified as Person 1, participated in several meetings in which Galvan, identified as Person 10, and Pacheco discussed improper payments.

Pacheco then voted in favor of a “marijuana cultivation and manufacturing development agreement” from an unidentified company on July 18, 2018, as part of a settlement with Galvan, according to federal prosecutors. Tier One was one of three companies to be awarded this type of development agreement at the same meeting.

The court filing further alleges that Galvan and Tafoya were “in business together” and were seeking a marijuana license in Trade Town. Public records also show Tafoya’s wife was hired as an administrative analyst at Compton in 2017, with emails at the time indicating she was initially recommended as a community liaison for Galvan.

Tier One owner Anthony Willoughby Sr., Willoughby II’s father, has served as Galvan’s personal attorney in the past. Galvan could not be reached for comment.

“Consultants” act as intermediaries

Pacheco’s plea deal alleges that Tafoya came up with the idea for Pacheco to find an intermediary to act as a “consultant to companies seeking development deals” and suggested that the intermediary specifically request 150,000 $ in exchange for a promise of delivery, the plea agreement says.

Pacheco eventually followed a very similar plan before being arrested.

Now, he and his intermediary, former San Bernardino County Planning Commissioner Gabriel Chavez, have agreed to plead guilty to a corruption charge and to cooperate with investigators in an ongoing and wide-ranging investigation into the corruption in cannabis in Southern California. Pacheco reportedly provided a template counseling agreement that Pachecho could use in the program.

Tafoya, Galvan and Chavez were raided simultaneously by the FBI in November 2020, but neither Tafoya nor Galvan were charged.

Torres-Siegrist alleges that his client is a victim of corruption. Torres-Siegrist represents seven cannabis farmers at Baldwin Park and says “everyone has their own little story to tell about the bulls – what was going on.”

Tafoya resigned in October after Pacheco’s plea deal became public. In a statement, his attorney, Mark Werksman, said Tafoya “denies any involvement in this transaction and had no knowledge of the facts alleged in this claim.” The former city attorney has previously denied any involvement in Pacheco’s corruption. Baldwin Park is now preparing to hire the firm Best, Best and Krieger to represent him.

‘Buyer’s remorse’

In a statement, Willoughby II said he was still working for Tafoya’s law firm on a limited basis. He directed any questions about Tier One’s finances or Galvan’s involvement to his father and denied playing any role in the sale, other than signing on behalf of Tier One. He is listed as the “seller” on the purchase contract.

In an email, Tier One owner Willoughby Sr. accused Ju of having “buyer’s remorse.” Tafoya had no role in negotiations between Willoughby and Ju, he wrote.

“Mr Ju, like many cannabis investors, was caught up in the euphoria of getting rich and when his dream went south he is now looking to capitalize on Mr Tafoya’s misfortune,” Willoughby wrote.

If Ju believes the “baseless defamatory allegation” that he was defrauded, “he should file a criminal complaint,” Willoughby said.

Willoughby said he had been paying rent on a location for almost a year while waiting for city approval and decided to cut his losses after realizing the idea was “fool’s gold” in because of the way the state and municipalities structured their licensing processes. He declined to say how much he earned from selling the development deal to Ju.

Documents provided by Torres-Siegrist suggest Willoughby may have spent less than $4,000 in total.

In response to questions about the transfer, Willoughby cited the “caveat emptor,” a common law doctrine that places the onus on buyers to reasonably investigate their purchases in advance. The Latin phrase translates to “let the purchase beware”.

“A look at the Baldwin Park development agreement would and should have told even a blind man that there was no way to make money from this program,” Willoughby said. .

Role of the Compton Councilor

Torres-Siegrist alleges that Galvan introduced and brokered the sale between Ju and the Willoughbys. The purchase agreement states that $50,000 of the $150,000 payment would go to Galvan “for repayment of a loan.”

Compton Councilman Isaac Galvan and five others were charged on Friday August 13 with conspiring to commit voter fraud in a June runoff to ensure Galvan would retain his seat.  Photo: City of Compton
Compton City Councilor Isaac Galvan (Photo: City of Compton)

In his emails, Willoughby initially said that Galvan “was not involved in the sale” between Tier One and Ju, but then later acknowledged that “Gavan was paid on the product”. He did not respond to a follow-up asking him to clarify the role of the former Compton councilman.

Although referred to as Tier One Consulting in all city filings, Willoughby registered “Tier 1 Consulting & Advocacy LLC” with the state in 2015, but the company has not filed any subsequent information statements. , was declared overdue in 2017 and suspended in April. 2018, according to the Secretary of State’s website.

Still, even though the company did not have an active business license during negotiations, Tafoya and community development manager Gustavo Romo recommended awarding a development deal to the LLC on June 20, 2018, according to a staff report. City Council unanimously backed the recommendation to give a Level One deal on June 20, with Pacheco presenting the supporting motion.

The LLC’s business license was reinstated on June 21, 2018, though the company later failed to file its information return and was suspended again by the end of the same year, according to the secretary’s website. of state.

The business, which had just two employees, got the development approval from the city and then sold it to Ju during that six-month period.

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Top TV soap enlists the expertise of a debt collection agency ⋆ Business Lancashire https://ctxetg.com/top-tv-soap-enlists-the-expertise-of-a-debt-collection-agency-%e2%8b%86-business-lancashire/ Fri, 04 Nov 2022 09:40:24 +0000 https://ctxetg.com/top-tv-soap-enlists-the-expertise-of-a-debt-collection-agency-%e2%8b%86-business-lancashire/ Leading debt collection agency Federal Management has been given a prominent role in the popular Manchester-based soap opera Coronation Street. The long-running soap opera has asked the highly regarded debt collection agency for help with scripts for a future storyline. Millions of viewers are expected to watch the respective episodes when they premiere in January […]]]>

Leading debt collection agency Federal Management has been given a prominent role in the popular Manchester-based soap opera Coronation Street.

The long-running soap opera has asked the highly regarded debt collection agency for help with scripts for a future storyline.

Millions of viewers are expected to watch the respective episodes when they premiere in January 2023. They will feature a tense debt collection storyline involving several of the show’s most renowned characters.

Coronation Street’s script writing team consulted with federal leadership to ensure the gripping script was as accurate as possible. The eye – the opening scenes will be realistic and keep viewers on the edge of their seats.

The scriptwriters and the federal management have remained silent on the actors who will be involved in the scenes airing next year.

Marc Curtis-Smith, Managing Director of Federal Management, said: “One of the main characters is going to be dealing with an unpaid CCJ debt issue, so we have been approached by the producers to verify the authenticity of the scripts and scenes. .”

“This involved ensuring that the writers used accurate industry terminology and that the facts used were legally correct. Many of our staff are regular viewers of the show, so we were honored to have been asked for advice on the scripts.

Federal management have also been appointed as key advisers for future scriptwriting work involving debt collection for ITV shows.

This is not the first time that the federal administration has been asked to help producers and screenwriters of television programs.

They are experienced advisers and regularly help TV producers with scripts and stories for TV shows and documentaries. The award-winning debt collection agency was established almost 20 years ago and is highly regarded in the business world.

Many high profile and prestigious organisations, as well as small businesses, have used their professional debt collection services in the UK and overseas. Their sister company, Frontline Collections, is a household name in the world of personal and private debt collection.

This isn’t the first time a debt collection narrative has taken center stage in one of Coronation Street’s dramatic episodes. One of the soap opera’s most famous stars, Mikey North, previously played the role of an “illegal” debt collector.

It is understood that the episodes on which the federal leadership has given advice will include the execution by the CCJ of a character’s unpaid debts.

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Don’t let ‘zombies’ eat your wallet, experts urge https://ctxetg.com/dont-let-zombies-eat-your-wallet-experts-urge/ Sat, 29 Oct 2022 15:30:00 +0000 https://ctxetg.com/dont-let-zombies-eat-your-wallet-experts-urge/ It’s scary season, and the Better Business Bureau is warning the public to be aware of debt collection scams. As Halloween approaches, the Better Business Bureau (BBB) warns consumers about one of the scariest types of scams: zombie debt, also known as debt collection scams. Victims often report that scammers harass them for weeks or […]]]>

It’s scary season, and the Better Business Bureau is warning the public to be aware of debt collection scams.

As Halloween approaches, the Better Business Bureau (BBB) warns consumers about one of the scariest types of scams: zombie debt, also known as debt collection scams.

Victims often report that scammers harass them for weeks or even months at home and at work, trying to get them to pay a debt they don’t even owe. These “zombie” or “ghost” debts seem to come out of nowhere, and BBB receives numerous reports throughout the year as crooks proverbially “put on a new disguise”, or rather change tactics, to steal your money. hard earned.

How it works

The scammer calls and says they work for a loan company, law firm, or government agency, and claims to collect an overdue payment.

After responding that you don’t owe any money, the “debt collector” begins to threaten to take legal action, garnish wages, issue a warrant for your arrest, or arrange for a court appearance. the tribunal.

All of these claims are nerve-wracking, leaving the person answering the phone shaken and uncertain. They may even start to think that maybe they owe the money after all.

The first thing to do is to stay calm. Despite the threats, these so-called “debt collectors” have no legal power. In most cases, the allegedly delinquent loan does not even exist. Don’t give in and pay the money you don’t owe or they will call you back for more.

The “Good cop” version

An unsolicited call comes from a debt collection agency. The appellant claims that there is a long outstanding debt that is about to be taken to court. The caller speaks politely at first and seems to have your best interests at heart. They seem to sincerely want to help you avoid a court date. To remedy the situation, it suffices to make a reasonable or “goodwill” payment, or even split into several installments.

No matter how nice the caller is, don’t fall for it. If you make the payment, the person you spoke to on the phone will take the money and disappear. All future efforts to contact them will be in vain.

‘Zombie Debt’ Collector Takes Another Tactic

A Vancouver woman says zombie debt appeared in the form of a collection letter at her home in November 2021, according to her report submitted to the BBB Scam Tracker.

The letter, claiming to be from Enterprise Rent-A-Car, said she was over $15,000 in debt due to damage to a rental car. Although the woman was initially concerned as she had previously rented vehicles from Enterprise, she quickly realized that she hadn’t rented that particular car or was out of town. where she claimed to be on the date indicated. She threw away the letter soon after.

Statistics

On average, victims lose $100 when involved in a debt collection scam. The age groups that most often fall for debt collection scams are 18-24 and 55-64. Of all the potential scams, debt collection scam occurrences are quite low (1.05%) compared to online shopping scam occurrences (35.54%). Although they are rarer, it is important to be prepared when you find yourself in Zombie Debt.

The BBB has provided the following advice on how to deal with debt collection scammers:

  • Request proof of the debt and the calling agency

    • If you owe money and you don’t know if the caller is real, ask for their name, company, address, and phone number. Do not provide any bank account, credit card or other personally identifiable information over the phone. If the collector is legitimate, they should have details of the accounts in question. Ask how you can contact them and call them back once you’ve checked the details they provided (if they had any). A legitimate debt collector will have a way for you to contact them.

  • Check your credit report

    • Check with Equifax Canada or TransUnion, two major consumer credit bureaus in Canada. This will help determine if there are any outstanding debts that have already hit your credit card or if there is suspicious activity. If you have already provided your personal information, place a fraud alert on your credit file.

  • Ask when the debt was first due

    • BC has a base limitation period of two years. This means that if two years (or more) have passed since you incurred the debt, made a payment on the debt, or acknowledged the debt, the creditor to whom the money is owed can no longer sue. against you, in an attempt to make you pay. If you do end up in debt, know that your credit score will be negatively affected.

  • just hang up

    • If you’re running a tight spreadsheet with all your costs and expenses and you know wholeheartedly that you have no outstanding loans, hang up. Do not press any number and do not speak to an “agent”.

Remember that while most debt collection agencies are legit, sometimes a scammer may be phishing for information.

If you come across a scam, we encourage you to report it to the BBB Scam Tracker or the Canadian Anti-Fraud Centre.

For more information, you can also consult the BBB website.

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These 4 metrics indicate that Universal Electronics (NASDAQ:UEIC) is using debt reasonably well https://ctxetg.com/these-4-metrics-indicate-that-universal-electronics-nasdaqueic-is-using-debt-reasonably-well/ Thu, 27 Oct 2022 10:18:23 +0000 https://ctxetg.com/these-4-metrics-indicate-that-universal-electronics-nasdaqueic-is-using-debt-reasonably-well/ Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We […]]]>

Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We can see that Universal Electronics Inc. (NASDAQ: UEIC) uses debt in its business. But the real question is whether this debt makes the business risky.

When is debt a problem?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. When we think about a company’s use of debt, we first look at cash and debt together.

Our analysis indicates that The UEIC is potentially overvalued!

How much debt does Universal Electronics have?

You can click on the graph below for historical numbers, but it shows that in June 2022, Universal Electronics had $88.0 million in debt, up from $46.0 million, on a year. However, since he has a cash reserve of $54.0 million, his net debt is lower, at around $34.0 million.

NasdaqGS: UEIC Debt to Equity History October 27, 2022

A look at Universal Electronics’ responsibilities

The latest balance sheet data shows Universal Electronics had liabilities of $233.4 million due within the year, and liabilities of $17.6 million due thereafter. In compensation for these obligations, it had cash of US$54.0 million as well as receivables valued at US$140.4 million and maturing within 12 months. Thus, its liabilities total $56.7 million more than the combination of its cash and short-term receivables.

This shortfall isn’t that bad because Universal Electronics is worth $245.7 million and therefore could probably raise enough capital to shore up its balance sheet, should the need arise. But we definitely want to keep our eyes peeled for indications that its debt is too risky.

We measure a company’s leverage against its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT ) covers its interest charge (interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Universal Electronics has a low net debt to EBITDA ratio of just 0.86. And its EBIT covers its interest charges 17.2 times. One could therefore say that he is no more threatened by his debt than an elephant is by a mouse. In fact, Universal Electronics’ saving grace is its low level of debt, as its EBIT has fallen 66% in the last twelve months. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. The balance sheet is clearly the area to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether Universal Electronics can strengthen its balance sheet over time. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. It is therefore worth checking how much of this EBIT is supported by free cash flow. Over the past three years, Universal Electronics has actually produced more free cash flow than EBIT. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Our point of view

Universal Electronics’ EBIT growth rate was definitely negative in this analysis, even though the other factors we considered were significantly better. There is no doubt that its ability to cover its interest costs with its EBIT is quite flashy. Given this range of data points, we believe Universal Electronics is in a good position to manage its level of leverage. That said, the charge is heavy enough that we recommend that any shareholder keep a close eye on it. We would be motivated to do more research on the stock if we find that Universal Electronics insiders have recently bought shares. If you’re in luck too, because today we’re sharing our list of reported insider trades for free.

In the end, it’s often best to focus on companies that aren’t in debt. You can access our special list of these companies (all with a track record of earnings growth). It’s free.

Valuation is complex, but we help make it simple.

Find out if Universal electronics is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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DCM Nouvelle (NSE:DCMNVL) takes some risk with its use of debt https://ctxetg.com/dcm-nouvelle-nsedcmnvl-takes-some-risk-with-its-use-of-debt/ Sat, 22 Oct 2022 02:59:25 +0000 https://ctxetg.com/dcm-nouvelle-nsedcmnvl-takes-some-risk-with-its-use-of-debt/ David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We can see that DCM […]]]>

David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We can see that DCM New Limited (NSE: DCMNVL) uses debt in its business. But the real question is whether this debt makes the business risky.

What risk does debt carry?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, permanently diluting shareholders, just to shore up its balance sheet. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business has is to look at its cash and debt together.

Check out our latest analysis for DCM Nouvelle

What is DCM Nouvelle’s net debt?

As you can see below, at the end of September 2022, DCM Nouvelle had a debt of ₹721.1 million, up from ₹677.1 million a year ago. Click on the image for more details. However, he has ₹354.7 million in cash to offset this, resulting in a net debt of around ₹366.4 million.

NSEI: DCMNVL Historical Debt to Equity October 22, 2022

A look at the liabilities of DCM Nouvelle

According to the latest published balance sheet, DCM Nouvelle had liabilities of ₹694.6 million due within 12 months and liabilities of ₹472.5 million due beyond 12 months. As compensation for these obligations, it had cash of ₹354.7 million as well as receivables valued at ₹380.7 million due within 12 months. Thus, its liabilities total ₹431.7 million more than the combination of its cash and short-term receivables.

Given that publicly traded DCM Nouvelle shares are worth a total of ₹2.86 billion, it seems unlikely that this level of liabilities will pose a major threat. But there are enough liabilities that we certainly recommend that shareholders continue to monitor the balance sheet in the future.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). Thus, we consider debt to earnings with and without amortization and depreciation expense.

DCM Nouvelle has a low net debt to EBITDA ratio of just 0.38. And its EBIT covers its interest charges 50.4 times. One could therefore say that he is no more threatened by his debt than an elephant is by a mouse. Fortunately, DCM Nouvelle’s workload is not too heavy, as its EBIT fell by 39% over last year. When it comes to paying off debt, lower income is no more helpful than sugary sodas for your health. When analyzing debt levels, the balance sheet is the obvious starting point. But you can’t look at debt in total isolation; since DCM Nouvelle will need income to repay this debt. So, if you want to know more about its earnings, it may be worth checking out this graph of its long-term trend.

Finally, while the taxman may love accounting profits, lenders only accept cash. It is therefore worth checking how much of this EBIT is supported by free cash flow. Over the past three years, DCM Nouvelle has achieved a free cash flow of 14% of its EBIT, which is really quite low. This low level of cash conversion compromises its ability to manage and repay its debt.

Our point of view

We are apprehensive about DCM Nouvelle’s difficult EBIT growth rate, but we also have some positives to focus on. For example, its interest coverage and its net debt to EBITDA give us some confidence in its ability to manage its debt. From all the angles mentioned above, it seems to us that DCM Nouvelle is a somewhat risky investment due to its indebtedness. Not all risk is bad, as it can increase stock price returns if it pays off, but this leverage risk is worth keeping in mind. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks reside on the balance sheet, far from it. These risks can be difficult to spot. Every business has them, and we’ve spotted 2 warning signs for DCM New you should know.

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

Valuation is complex, but we help make it simple.

Find out if DCM News is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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