DMAQ Old Current Debt
| DMAQDelisted Stock | USD 11.59 0.12 1.02% |
DMAQ Old's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. DMAQ Old's financial risk is the risk to DMAQ Old stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Given that DMAQ Old's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which DMAQ Old is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of DMAQ Old to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, DMAQ Old is said to be less leveraged. If creditors hold a majority of DMAQ Old's assets, the Company is said to be highly leveraged.
DMAQ |
DMAQ Old Debt to Cash Allocation
DMAQ Old currently holds 1.86 M in liabilities. DMAQ Old has a current ratio of 224.96, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about DMAQ Old's use of debt, we should always consider it together with its cash and equity.DMAQ Old Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the DMAQ Old's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of DMAQ Old, which in turn will lower the firm's financial flexibility.Understaning DMAQ Old Use of Financial Leverage
DMAQ Old's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to DMAQ Old's current equity. If creditors own a majority of DMAQ Old's assets, the company is considered highly leveraged. Understanding the composition and structure of DMAQ Old's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Deep Medicine Acquisition Corp. does not have significant operations. The company was incorporated in 2020 and is based in New York, New York. Deep Medicine is traded on NASDAQ Exchange in the United States. Please read more on our technical analysis page.
Pair Trading with DMAQ Old
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DMAQ Old position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DMAQ Old will appreciate offsetting losses from the drop in the long position's value.Moving together with DMAQ Stock
Moving against DMAQ Stock
| 0.81 | DD | Dupont De Nemours Fiscal Year End 4th of February 2025 | PairCorr |
| 0.72 | AA | Alcoa Corp | PairCorr |
| 0.71 | TRV | The Travelers Companies | PairCorr |
| 0.62 | JNJ | Johnson Johnson Fiscal Year End 28th of January 2025 | PairCorr |
| 0.59 | PG | Procter Gamble | PairCorr |
The ability to find closely correlated positions to DMAQ Old could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DMAQ Old when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DMAQ Old - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DMAQ Old to buy it.
The correlation of DMAQ Old is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DMAQ Old moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DMAQ Old moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DMAQ Old can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Consideration for investing in DMAQ Stock
If you are still planning to invest in DMAQ Old check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the DMAQ Old's history and understand the potential risks before investing.
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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.