Bright Minds Debt
| DRUG Stock | USD 39.18 1.07 2.81% |
The Bright Minds' current Short and Long Term Debt Total is estimated to increase to about 85.4 K, while Net Debt is projected to decrease to (6.3 M). . Bright Minds' financial risk is the risk to Bright Minds stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0 | Current Value 0.0 | Quarterly Volatility 0.0 |
Given that Bright Minds' 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 Bright Minds 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 Bright Minds to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Bright Minds is said to be less leveraged. If creditors hold a majority of Bright Minds' assets, the Company is said to be highly leveraged.
At this time, Bright Minds' Change To Liabilities is most likely to increase significantly in the upcoming years. Bright |
Bright Minds Bond Ratings
Bright Minds Biosciences financial ratings play a critical role in determining how much Bright Minds have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Bright Minds' borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (4.78) | Unlikely Manipulator | View |
Bright Minds Biosciences Debt to Cash Allocation
Many companies such as Bright Minds, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Bright Minds Biosciences currently holds 73.55 K in liabilities. Bright Minds Biosciences has a current ratio of 22.42, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Bright Minds' use of debt, we should always consider it together with its cash and equity.Bright Minds Total Assets Over Time
Bright Minds 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 Bright Minds' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Bright Minds, which in turn will lower the firm's financial flexibility.Bright Minds Corporate Bonds Issued
Most Bright bonds can be classified according to their maturity, which is the date when Bright Minds Biosciences has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Bright Net Debt
Net Debt |
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Understaning Bright Minds Use of Financial Leverage
Bright Minds' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Bright Minds' total debt position, including all outstanding debt obligations, and compares it with Bright Minds' equity. Financial leverage can amplify the potential profits to Bright Minds' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Bright Minds is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -6 M | -6.3 M | |
| Short and Long Term Debt Total | 66.2 K | 85.4 K | |
| Short Term Debt | 84.6 K | 77.8 K | |
| Net Debt To EBITDA | 0.83 | 0.67 | |
| Interest Debt Per Share | 0.01 | 0.01 |
Currently Active Assets on Macroaxis
When determining whether Bright Minds Biosciences is a strong investment it is important to analyze Bright Minds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bright Minds' future performance. For an informed investment choice regarding Bright Stock, refer to the following important reports:Check out the analysis of Bright Minds Fundamentals Over Time. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bright Minds. If investors know Bright will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bright Minds listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.63) | Return On Assets (0.29) | Return On Equity (0.52) |
The market value of Bright Minds Biosciences is measured differently than its book value, which is the value of Bright that is recorded on the company's balance sheet. Investors also form their own opinion of Bright Minds' value that differs from its market value or its book value, called intrinsic value, which is Bright Minds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bright Minds' market value can be influenced by many factors that don't directly affect Bright Minds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bright Minds' value and its price as these two are different measures arrived at by different means. Investors typically determine if Bright Minds is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bright Minds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
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.