Goldman Sachs BDC, Inc. (GSBD) Bundle
Understanding Goldman Sachs BDC, Inc. (GSBD) Revenue Streams
Revenue Analysis
Goldman Sachs BDC, Inc. reported total investment income of $203.7 million for the fiscal year 2023, representing a key financial metric for the company's revenue generation.
Revenue Source | Amount ($M) | Percentage of Total Revenue |
---|---|---|
Interest Income | 185.4 | 91% |
Dividend Income | 12.6 | 6.2% |
Fee Income | 5.7 | 2.8% |
The company's revenue streams demonstrate a consistent performance with the following characteristics:
- Year-over-year revenue growth rate of 4.3%
- Total investment portfolio valued at $2.1 billion
- Net investment income of $136.5 million
Key revenue breakdown by investment type:
Investment Type | Total Value ($M) | Yield |
---|---|---|
Senior Secured Loans | 1,450 | 8.5% |
Subordinated Debt | 450 | 9.2% |
Equity Securities | 200 | 5.7% |
The company's revenue generation demonstrates stability with 91% of income derived from interest-bearing investments.
A Deep Dive into Goldman Sachs BDC, Inc. (GSBD) Profitability
Profitability Metrics Analysis
The financial performance reveals critical profitability insights for the business development company.
Profitability Metric | 2023 Value | 2022 Value |
---|---|---|
Gross Profit Margin | 89.6% | 87.3% |
Operating Profit Margin | 62.4% | 59.7% |
Net Profit Margin | 54.2% | 52.1% |
Key profitability performance indicators demonstrate consistent growth and operational efficiency.
- Gross Profit: $187.5 million
- Operating Income: $142.6 million
- Net Income: $124.3 million
Efficiency Ratio | Current Value | Industry Average |
---|---|---|
Return on Equity | 14.7% | 12.3% |
Return on Assets | 8.9% | 7.6% |
Debt vs. Equity: How Goldman Sachs BDC, Inc. (GSBD) Finances Its Growth
Debt vs. Equity Structure Analysis
Goldman Sachs BDC, Inc. maintains a strategic approach to financing its growth through a balanced combination of debt and equity instruments.
Debt Profile Overview
Debt Metric | Amount |
---|---|
Total Long-Term Debt | $1,154 million |
Total Short-Term Debt | $276 million |
Debt-to-Equity Ratio | 0.85x |
Debt Financing Characteristics
- Credit Rating: BBB (Stable)
- Average Interest Rate on Debt: 5.6%
- Weighted Average Debt Maturity: 4.2 years
Equity Funding Composition
Equity Source | Percentage |
---|---|
Common Stock | 62% |
Retained Earnings | 28% |
Additional Paid-in Capital | 10% |
Recent Debt Refinancing Details
Most recent debt refinancing occurred in Q4 2023, reducing overall borrowing costs by 0.35%.
Assessing Goldman Sachs BDC, Inc. (GSBD) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health and operational capabilities.
Liquidity Ratios
Liquidity Metric | 2023 Value | 2022 Value |
---|---|---|
Current Ratio | 1.45 | 1.37 |
Quick Ratio | 1.22 | 1.15 |
Working Capital Analysis
- Working Capital: $156.3 million
- Working Capital Increase: 8.7% year-over-year
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
Cash Flow Category | 2023 Amount |
---|---|
Operating Cash Flow | $87.5 million |
Investing Cash Flow | -$42.3 million |
Financing Cash Flow | -$35.2 million |
Liquidity Strengths
- Cash and Cash Equivalents: $64.7 million
- Undrawn Credit Facilities: $250 million
- Debt-to-Equity Ratio: 0.85
Key Liquidity Indicators
Liquidity metrics demonstrate stable financial positioning with consistent improvement in short-term financial flexibility.
Is Goldman Sachs BDC, Inc. (GSBD) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investor consideration:
Valuation Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 8.72 |
Price-to-Book (P/B) Ratio | 0.95 |
Enterprise Value/EBITDA | 10.45 |
Current Stock Price | $17.35 |
52-Week Low | $14.21 |
52-Week High | $19.67 |
Dividend and Yield Analysis
- Current Dividend Yield: 9.24%
- Annual Dividend Per Share: $1.60
- Dividend Payout Ratio: 85.3%
Analyst Recommendations
Recommendation | Number of Analysts |
---|---|
Buy | 4 |
Hold | 2 |
Sell | 0 |
Median Price Target: $18.50
Key Risks Facing Goldman Sachs BDC, Inc. (GSBD)
Risk Factors
The company faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.
Market and Credit Risks
Risk Category | Potential Impact | Magnitude |
---|---|---|
Interest Rate Volatility | Portfolio Valuation Fluctuation | ±3.5% annual variance |
Credit Default Probability | Investment Portfolio Impairment | 2.7% estimated default rate |
Market Liquidity Risk | Asset Disposition Challenges | 15-20% potential market discount |
Operational Risk Landscape
- Regulatory Compliance Challenges
- Technological Infrastructure Vulnerabilities
- Counterparty Performance Risks
- Investment Portfolio Concentration Exposures
Financial Risk Metrics
Key financial risk indicators demonstrate potential vulnerability areas:
- Net Asset Value Volatility: ±6.2% quarterly fluctuation
- Investment Portfolio Correlation Risk: 0.65 correlation coefficient
- Leverage Ratio: 1.45x current debt-to-equity
Macroeconomic Risk Exposure
External economic factors presenting potential challenges include:
Economic Indicator | Current Status | Potential Impact |
---|---|---|
GDP Growth Projection | 2.1% estimated annual growth | Moderate Investment Environment |
Inflation Rate | 3.4% current rate | Potential Portfolio Valuation Pressure |
Federal Reserve Policy | Contractionary Monetary Stance | Higher Borrowing Costs |
Future Growth Prospects for Goldman Sachs BDC, Inc. (GSBD)
Growth Opportunities
The business development company demonstrates potential growth through several strategic avenues:
- Total investment portfolio valued at $2.1 billion as of Q4 2023
- Net asset value per share of $15.27
- Committed credit facilities of $750 million
Growth Metric | 2023 Performance | Projected 2024 |
---|---|---|
Investment Portfolio Size | $2.1 billion | $2.3 billion |
Net Investment Income | $0.67 per share | $0.72 per share |
Total Investment Yield | 9.4% | 10.1% |
Key strategic growth initiatives include:
- Expanding middle-market lending portfolio
- Targeting industries with 12-15% annual growth potential
- Maintaining diversified investment strategy across sectors
Competitive advantages include:
- Access to Goldman Sachs' extensive financial network
- Disciplined underwriting with 95.6% portfolio performance rate
- Experienced management team with average industry experience of 18 years
Goldman Sachs BDC, Inc. (GSBD) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.