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$8.42 magellan financial group limited

so mqg has made a profit of $5.3b but its debt is $164b,that's...

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pete11

10,318 Posts.

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29/10/23

07:08

Post #: 70597004
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Originally posted by SaltyInvestor: ↑

Well what matters with MQG is the tier 1 & surplus capital it holds which is far in excess of regulatory requirements. MQG in a way is a bit of a black box as well and it's hard to understand what exactly all of the debt on its balance sheet is for, but it's likely a combination of liabilities from its banking operation (i.e. home loans), asset financing, and it itself buying large unlisted assets/businesses on the market. MQG I don't think has any type of serviceability issue.

Also debt in and of itself isn't a ticking time bomb. It's the relative amounts and serviceability that's the issues. MQG would appear to be very healthy on both fronts. Simplistically if somebody has $2 million in debt, but $1 million in income, that's an extremely low debt and high serviceability. If somebody has $2 million in debt an $100k in income, oh boy, I would not want to be that person.

See snapshot from their 2023 report here - all pretty great metrics at a high level.

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so mqg has made a profit of $5.3b but its debt is $164b,that's terrible isnt it?
it would take 30yrs of profit to pay of its debt even longer probably, or have I got this all wrong?

MFG Price at posting: $6.37 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $8.42		Change -0.140(1.64%)		Mkt cap ! $1.521B

Open	High	Low	Value	Volume
$8.52	$8.53	$8.34	$4.998M	594.0K

Buyers (Bids)

No.	Vol.	Price($)
2	2816	$8.41

Sellers (Offers)

Price($)	Vol.	No.
$8.43	162	1

View Market Depth

No.	Vol.	Price($)
1	1100	8.400
2	1768	8.390
1	240	8.380
1	20000	8.370
3	4815	8.300

Price($)	Vol.	No.
8.450	1800	1
8.470	1000	1
8.550	1400	1
8.560	4063	3
8.570	745	1

Last trade - 16.10pm 28/06/2024 (20 minute delay)

MFG (ASX) Chart

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