Inside the Debt and Risk of Husky Energy
Gaining knowledge about company's debt and liabilities is a key component in understanding the risk of a company. An understanding of these factors will aid in the decision to invest, not to invest, or to stay invested in a company. There are many metrics involved in gaining knowledge about the debt of a company, but for this article, I will look at Husky Energy's (HSE:TO) total debt, total liabilities, debt ratios and WACC.
All Numbers in Canadian Dollars.
1. Total Debt = Long-Term Debt + Short-Term Debt
Total debt is the sum of long-term debt, which is debt that is due in one year or more, and short-term debt, which is any debt that is due within one year.
• 2008 - $3.616 billion + $0 million = $3.616 billion
• 2009 - $4.729 billion + $0 million = $4.729 billion
• 2010 - $5.614 billion + $0 million = $5.614 billion
• 2011 - $3.504 billion + $407 million = $3.911 billion
• 2012 TTM - $5.243 billion + $0 million = $5.243 billion
Husky's total debt has increased since 2008. In 2008, the company reported a total debt of $3.616 billion. In 2012 TTM, the company's total debt increased to $5.243 billion. Over the past 5 years, Husky's total debt has increased by 44.99%.
2. Total Liabilities
Liabilities are a company's legal debts or obligations that arise during the course of business operations, so debts are one type of liability, but not all liabilities. Total liabilities is the combination of long-term liabilities, which are the liabilities that are due in one year or more, and short-term or current liabilities, which are any liabilities due within one year.
• 2008 - $12.134 billion
• 2009 - $11.882 billion
• 2010 - $13.640 billion
• 2011 - $14.653 billion
• 2012 TTM - $14.532 billion
Husky's liabilities have also increased over the past 5 years. In 2008, the company reported liabilities at $12.134 billion; in 2012 TTM, the company reported liabilities at $14.532 billion. Over the past 5 years, Husky Energy's liabilities have increased by 19.76%.
To read more please read: Inside the Debt and Risk of Husky Energy
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.