Foxx Development Current Debt
FOXX Stock | 5.82 0.45 7.18% |
At this time, Foxx Development's Net Debt is fairly stable compared to the past year. Interest Debt Per Share is likely to rise to 0.97 in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 3.6 M in 2024. With a high degree of financial leverage come high-interest payments, which usually reduce Foxx Development's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 1.1919773 | Current Value 0.89 | Quarterly Volatility 0.11841295 |
Foxx |
Foxx Development Financial Rating
Foxx Development Holdings financial ratings play a critical role in determining how much Foxx Development 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 Foxx Development's borrowing costs.Piotroski F Score | 4 | Poor | View |
Beneish M Score | (0.68) | Possible Manipulator | View |
Foxx Development Total Assets Over Time
Foxx Development Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Foxx Development 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.Foxx Development Debt Ratio | 89.0 |
Foxx Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Foxx Development Use of Financial Leverage
Understanding the structure of Foxx Development's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Foxx Development's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
Last Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 6.8 M | 3.6 M | |
Net Debt | 6.2 M | 6.5 M | |
Short and Long Term Debt | 6.3 M | 3.4 M | |
Short Term Debt | 6.4 M | 3.4 M | |
Long Term Debt | 95.4 K | 84.2 K | |
Net Debt To EBITDA | (2.02) | (1.91) | |
Debt To Equity | (1.60) | (1.68) | |
Interest Debt Per Share | 0.92 | 0.97 | |
Debt To Assets | 1.19 | 0.89 | |
Long Term Debt To Capitalization | (0.02) | (0.03) | |
Total Debt To Capitalization | 2.67 | 2.80 | |
Debt Equity Ratio | (1.60) | (1.68) | |
Debt Ratio | 1.19 | 0.89 | |
Cash Flow To Debt Ratio | (0.73) | (0.77) |
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When running Foxx Development's price analysis, check to measure Foxx Development'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 Foxx Development is operating at the current time. Most of Foxx Development's value examination focuses on studying past and present price action to predict the probability of Foxx Development's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Foxx Development's price. Additionally, you may evaluate how the addition of Foxx Development 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.