Healthy Choice Current Debt
| HCWC Stock | 1.23 0.01 0.82% |
As of January 22, 2025, Long Term Debt is expected to decline to about 1.8 M. In addition to that, Short and Long Term Debt is expected to decline to about 455.3 K With a high degree of financial leverage come high-interest payments, which usually reduce Healthy Choice's Earnings Per Share (EPS).
Given that Healthy Choice'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 Healthy Choice 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 Healthy Choice to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Healthy Choice is said to be less leveraged. If creditors hold a majority of Healthy Choice's assets, the Company is said to be highly leveraged.
As of January 22, 2025, Total Current Liabilities is expected to decline to about 6.1 M. In addition to that, Non Current Liabilities Total is expected to decline to about 8.8 MHealthy |
Healthy Choice Financial Rating
Healthy Choice Wellness financial ratings play a critical role in determining how much Healthy Choice 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 Healthy Choice's borrowing costs.| Piotroski F Score | 2 | Frail | View |
| Beneish M Score | (5.22) | Unlikely Manipulator | View |
Healthy Choice Total Assets Over Time
Healthy Choice 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 Healthy Choice's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Healthy Choice, which in turn will lower the firm's financial flexibility.Healthy Long Term Debt
Long Term Debt |
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Understaning Healthy Choice Use of Financial Leverage
Healthy Choice's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Healthy Choice's total debt position, including all outstanding debt obligations, and compares it with Healthy Choice's equity. Financial leverage can amplify the potential profits to Healthy Choice's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Healthy Choice is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 2.8 M | 1.8 M | |
| Short and Long Term Debt | 808.1 K | 455.3 K | |
| Net Debt | 1.9 M | 1.4 M |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Healthy Choice Wellness offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Healthy Choice's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Healthy Choice Wellness Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Healthy Choice Wellness Stock:Check out the analysis of Healthy Choice Fundamentals Over Time. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Is Consumer Staples Distribution & Retail 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 Healthy Choice. If investors know Healthy 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 Healthy Choice listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Healthy Choice Wellness is measured differently than its book value, which is the value of Healthy that is recorded on the company's balance sheet. Investors also form their own opinion of Healthy Choice's value that differs from its market value or its book value, called intrinsic value, which is Healthy Choice'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 Healthy Choice's market value can be influenced by many factors that don't directly affect Healthy Choice'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 Healthy Choice's value and its price as these two are different measures arrived at by different means. Investors typically determine if Healthy Choice is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Healthy Choice'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.