GigCapital7 Corp Current Debt
| GIG Stock | USD 10.05 0.02 0.20% |
GigCapital7 Corp Class has over 125,000 in debt which may indicate that it relies heavily on debt financing. At this time, GigCapital7 Corp's Debt To Assets are most likely to increase slightly in the upcoming years. The GigCapital7 Corp's current Total Debt To Capitalization is estimated to increase to 0.36, while Net Debt is forecasted to increase to (163.9 K). . GigCapital7 Corp's financial risk is the risk to GigCapital7 Corp stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
GigCapital7 Corp'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. GigCapital7 Corp'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 GigCapital7 Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect GigCapital7 Corp's stakeholders.
For most companies, including GigCapital7 Corp, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for GigCapital7 Corp Class, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, GigCapital7 Corp's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Book Value (0.30) |
GigCapital7 |
GigCapital7 Corp Financial Rating
GigCapital7 Corp Class financial ratings play a critical role in determining how much GigCapital7 Corp 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 GigCapital7 Corp's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | 22.12 | Possible Manipulator | View |
GigCapital7 Corp Class Debt to Cash Allocation
Many companies such as GigCapital7 Corp, 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.
GigCapital7 Corp Class has 125 K in debt with debt to equity (D/E) ratio of 41.4, demonstrating that the company may be unable to create cash to meet all of its financial commitments. GigCapital7 Corp Class has a current ratio of 0.96, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for GigCapital7 to invest in growth at high rates of return. GigCapital7 Corp Total Assets Over Time
GigCapital7 Corp Assets Financed by Debt
The debt-to-assets ratio shows the degree to which GigCapital7 Corp 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.GigCapital7 Corp Debt Ratio | 3.63 |
GigCapital7 Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning GigCapital7 Corp Use of Financial Leverage
GigCapital7 Corp's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures GigCapital7 Corp's total debt position, including all outstanding debt obligations, and compares it with GigCapital7 Corp's equity. Financial leverage can amplify the potential profits to GigCapital7 Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if GigCapital7 Corp is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 3.5 M | 1.8 M | |
| Net Debt | -172.5 K | -163.9 K | |
| Short Term Debt | 112.5 K | 106.9 K | |
| Short and Long Term Debt | 112.5 K | 100 K | |
| Net Debt To EBITDA | (69.92) | (66.42) | |
| Debt To Equity | 0.55 | 0.58 | |
| Interest Debt Per Share | 0.65 | 0.69 | |
| Debt To Assets | 0.03 | 0.04 | |
| Total Debt To Capitalization | 0.34 | 0.36 | |
| Debt Equity Ratio | 0.55 | 0.58 | |
| Debt Ratio | 0.03 | 0.04 | |
| Cash Flow To Debt Ratio | (0.58) | (0.61) |
Currently Active Assets on Macroaxis
When determining whether GigCapital7 Corp Class is a strong investment it is important to analyze GigCapital7 Corp's 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 GigCapital7 Corp's future performance. For an informed investment choice regarding GigCapital7 Stock, refer to the following important reports:Check out the analysis of GigCapital7 Corp Fundamentals Over Time. For more detail on how to invest in GigCapital7 Stock please use our How to Invest in GigCapital7 Corp guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Is Asset Management & Custody Banks 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 GigCapital7 Corp. If investors know GigCapital7 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 GigCapital7 Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.16) |
The market value of GigCapital7 Corp Class is measured differently than its book value, which is the value of GigCapital7 that is recorded on the company's balance sheet. Investors also form their own opinion of GigCapital7 Corp's value that differs from its market value or its book value, called intrinsic value, which is GigCapital7 Corp's 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 GigCapital7 Corp's market value can be influenced by many factors that don't directly affect GigCapital7 Corp's 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 GigCapital7 Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if GigCapital7 Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GigCapital7 Corp's 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.