C29 Metals 235822AB9 Bond
C29 Stock | 0.09 0.00 0.00% |
Short Term Debt is likely to gain to about 18.7 K in 2024, whereas Net Debt is likely to drop (2.3 M) in 2024. . C29 Metals' financial risk is the risk to C29 Metals stockholders that is caused by an increase in debt.
Change To Liabilities is likely to gain to about 383.6 K in 2024, whereas Total Current Liabilities is likely to drop slightly above 208.6 K in 2024. C29 |
Given the importance of C29 Metals' capital structure, the first step in the capital decision process is for the management of C29 Metals to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of C29 Metals to issue bonds at a reasonable cost.
Popular Name | C29 Metals Dana 575 percent |
Specialization | Other Industrial Metals & Mining |
Equity ISIN Code | AU0000174237 |
Bond Issue ISIN Code | US235822AB96 |
S&P Rating | Others |
Maturity Date | 15th of April 2025 |
Issuance Date | 4th of April 2017 |
Coupon | 5.75 % |
C29 Metals Outstanding Bond Obligations
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Understaning C29 Metals Use of Financial Leverage
C29 Metals' financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to C29 Metals' current equity. If creditors own a majority of C29 Metals' assets, the company is considered highly leveraged. Understanding the composition and structure of C29 Metals' outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last Reported | Projected for Next Year | ||
Net Debt | -2.2 M | -2.3 M | |
Short Term Debt | 17.8 K | 18.7 K | |
Short and Long Term Debt Total | 13.9 K | 12.4 K |
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Additional Tools for C29 Stock Analysis
When running C29 Metals' price analysis, check to measure C29 Metals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy C29 Metals is operating at the current time. Most of C29 Metals' value examination focuses on studying past and present price action to predict the probability of C29 Metals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move C29 Metals' price. Additionally, you may evaluate how the addition of C29 Metals to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.