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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Core Scientific's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $626.8 Mil.
Warning Sign:
Core Scientific Inc keeps issuing new debt. Over the past 3 years, it issued USD 668.999 million of debt.
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. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Core Scientific's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $626.8 Mil. Core Scientific's Total Assets for the quarter that ended in Mar. 2024 was $814.0 Mil. Core Scientific's LT-Debt-to-Total-Asset for the quarter that ended in Mar. 2024 was 0.77.
Core Scientific's LT-Debt-to-Total-Asset increased from Mar. 2023 (0.00) to Mar. 2024 (0.77). It may suggest that Core Scientific is progressively becoming more dependent on debt to grow their business.
The historical data trend for Core Scientific's Long-Term Debt & Capital Lease Obligation 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.
Core Scientific Annual Data | |||||||||||
Trend | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||
Long-Term Debt & Capital Lease Obligation | 5.28 | 22.13 | 714.36 | 0.72 | 721.34 |
Core Scientific Quarterly Data | ||||||||||||||||
Dec19 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Long-Term Debt & Capital Lease Obligation | Get a 7-Day Free Trial | 1.06 | 1.08 | 716.52 | 721.34 | 626.77 |
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
Core Scientific (OTCPK:CORZQ) Long-Term Debt & Capital Lease Obligation 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.
Core Scientific's LT-Debt-to-Total-Asset ratio for the quarter that ended in Mar. 2024 is calculated as:
LT-Debt-to-Total-Asset (Q: Mar. 2024 ) | = | Long-Term Debt & Capital Lease Obligation (Q: Mar. 2024 ) | / | Total Assets (Q: Mar. 2024 ) |
= | 626.765 | / | 813.968 | |
= | 0.77 |
* 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.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
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Adam Taylor Sullivan | officer: President | C/O CORE SCIENTIFIC, INC., 2407 S. CONGRESS AVENUE, AUSTIN TX 78704 |
Darin Feinstein | director, 10 percent owner, officer: Chief Vision Officer | 2800 NORTHUP WAY, SUITE 220, BELLEVUE WA 98004 |
Sterling Denise Marie Brucia | officer: Chief Financial Officer | C/O CORE SCIENTIFIC, INC., 201 BARTON SPRINGS ROAD, AUSTIN TX 78704 |
Matt Minnis | director | 2800 NORTHUP WAY, SUITE 220, BELLEVUE WA 98004 |
Brian Neville | officer: Chief Accounting Officer | C/O CORE SCIENTIFIC, INC., 2800 NORTHROP WAY, BELLEVUE WA 98004 |
Todd M Duchene | officer: EVP, GC and Secretary | 847 GIBRALTAR DR., MILPITAS CA 95035 |
Michael Trzupek | officer: Chief Financial Officer | 2800 NORTHUP WAY, SUITE 220, BELLEVUE WA 98004 |
Stacie Olivares | director | 2525 E. CAMELBACK RD., STE 850, PHOENIX AZ 85016 |
Jarvis V. Hollingsworth | director | 100 WEST HOUSTON STREET, SAN ANTONIO TX 78205 |
Michael J Levitt | director, officer: Chief Executive Officer | KAYNE ANDERSON CAPITAL ADVISORS, L.P., 1800 AVENUE OF THE STARS, 3RD FLOOR, LOS ANGELES CA 90067 |
Dr Kneeland Youngblood | director | C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105 |
John P Mcgarrity | officer: General Counsel and Secretary | 321 N. CLARK STREET, CHICAGO IL 60054 |
Sullivan Colleen | director | 420 EXECUTIVE SQUARE SUITE 300, LA JOLLA CA 92037 |
Theodore J Brombach | 10 percent owner | 321 N. CLARK STREET, CHICAGO IL 60054 |
Patrick C Eilers | director, 10 percent owner, officer: Chief Executive Officer | THREE FIRST NATIONAL PLAZA STE 3800, CHICAGO IL 60602 |
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