You think Manchester United (NYSE:MANU) debt is an issue for private investors?


USD 12.73  0.03  0.24%   

The next fiscal year end is expected on the 16th of September 2022. The stock is currently undergoing above-average trading activities. Manchester United Asset Turnover is comparatively stable at the moment as compared to the past year. Manchester United reported Asset Turnover of 0.43 in 2021. Book Value per Share is likely to gain to 1.84 in 2022, whereas Working Capital is likely to drop (158 M) in 2022. As many millenniums are trying to avoid communication services space, it makes sense to review Manchester United a little further and try to understand its current market patterns. We will break down if it could be a much better year for Manchester United shareholders.
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The company currently holds 596.08 M in liabilities with Debt to Equity (D/E) ratio of 2.82, implying Manchester United greatly relies on financing operations through barrowing.
Our investment recommendation tool can cross-verify current analyst consensus on Manchester United and to analyze the entity potential to grow in the current economic cycle.
Manchester United financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Manchester United, including all of Manchester United'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 Manchester United assets, the company is considered highly leveraged. Understanding the composition and structure of overall Manchester United 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 Manchester United's Liquidity

Manchester United financial leverage refers to using borrowed capital as a funding source to finance Manchester United ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Manchester United 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. Please check the breakdown between Manchester United's total debt and its cash.

How does Manchester utilize its cash?

To perform a cash flow analysis of Manchester United, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Manchester United is receiving and how much cash it distributes out in a given period. The Manchester United cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking it down a bit more

Manchester United reported the previous year's revenue of 558.76 M. Net Loss for the year was (152.33 M) with profit before overhead, payroll, taxes, and interest of 455.69 M.

Asset Breakdown

1.2 B
Assets Non Current
852.8 M
288 M
Current Assets
Total Assets1.53 Billion
Current Assets287.96 Million
Assets Non Current1.24 Billion
Goodwill852.82 Million
Tax Assets1.02 Million

Will Manchester United newest gain continue?

Standard deviation is down to 2.48. It may call for a possible volatility drop. Manchester United exhibits very low volatility with skewness of 1.88 and kurtosis of 7.77. However, we advise investors to further study Manchester United technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Manchester United's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Manchester United's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Manchester United Implied Volatility

Manchester United's implied volatility exposes the market's sentiment of Manchester United stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Manchester United's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Manchester United stock will not fluctuate a lot when Manchester United's options are near their expiration.

Our Takeaway on Manchester United Investment

When is the right time to buy or sell Manchester United? Buying stocks such as Manchester United 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.
In closing, as of the 13th of August 2022, our research shows that Manchester United is a rather not too volatile investment opportunity with a below average probability of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our up-to-date 90 days buy vs. sell advice on the firm is Strong Hold.

Editorial Staff

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 Raphi Shpitalnik do not own shares of Manchester United. Please refer to our Terms of Use for any information regarding our disclosure principles.

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