Finnovate Acquisition Debt
FNVT Stock | USD 11.62 0.00 0.00% |
Finnovate Acquisition holds a debt-to-equity ratio of 0.719. At this time, Finnovate Acquisition's Net Debt is comparatively stable compared to the past year. Debt To Equity is likely to gain to 0.03 in 2024, whereas Short and Long Term Debt is likely to drop slightly above 985.7 K in 2024. . Finnovate Acquisition's financial risk is the risk to Finnovate Acquisition stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Finnovate Acquisition's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Finnovate Acquisition's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Finnovate Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Finnovate Acquisition's stakeholders.
For most companies, including Finnovate Acquisition, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Finnovate Acquisition Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Finnovate Acquisition's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 3.5956 | Book Value (0.60) | Return On Assets 0.0011 | Return On Equity 0.5867 |
Finnovate |
Finnovate Acquisition Bond Ratings
Finnovate Acquisition Corp financial ratings play a critical role in determining how much Finnovate Acquisition 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 Finnovate Acquisition's borrowing costs.Piotroski F Score | 3 | Frail | View |
Beneish M Score | (5.18) | Unlikely Manipulator | View |
Finnovate Acquisition Debt to Cash Allocation
Finnovate Acquisition Corp currently holds 1.34 M in liabilities with Debt to Equity (D/E) ratio of 0.72, which is about average as compared to similar companies. Finnovate Acquisition has a current ratio of 1.98, which is within standard range for the sector. Note, when we think about Finnovate Acquisition's use of debt, we should always consider it together with its cash and equity.Finnovate Acquisition Total Assets Over Time
Finnovate Acquisition Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Finnovate Acquisition uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Finnovate Acquisition Debt Ratio | 2.75 |
Finnovate Acquisition Corporate Bonds Issued
Understaning Finnovate Acquisition Use of Financial Leverage
Finnovate Acquisition's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Finnovate Acquisition's current equity. If creditors own a majority of Finnovate Acquisition's assets, the company is considered highly leveraged. Understanding the composition and structure of Finnovate Acquisition's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 1.3 M | 822.1 K | |
Net Debt | 1.3 M | 1.4 M | |
Long Term Debt | 404.8 K | 359.8 K | |
Short and Long Term Debt | 1.3 M | 985.7 K | |
Short Term Debt | 1.3 M | 985.7 K | |
Net Debt To EBITDA | 0.54 | 0.47 | |
Debt To Equity | 0.03 | 0.03 | |
Interest Debt Per Share | 0.10 | 0.10 | |
Debt To Assets | 0.03 | 0.03 | |
Total Debt To Capitalization | 0.03 | 0.03 | |
Debt Equity Ratio | 0.03 | 0.03 | |
Debt Ratio | 0.03 | 0.03 | |
Cash Flow To Debt Ratio | (0.59) | (0.62) |
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Additional Tools for Finnovate Stock Analysis
When running Finnovate Acquisition's price analysis, check to measure Finnovate Acquisition's 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 Finnovate Acquisition is operating at the current time. Most of Finnovate Acquisition's value examination focuses on studying past and present price action to predict the probability of Finnovate Acquisition's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Finnovate Acquisition's price. Additionally, you may evaluate how the addition of Finnovate Acquisition 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.