MidCap Financial Current Debt
| MFIC Stock | USD 12.96 0.30 2.37% |
MidCap Financial Inv holds a debt-to-equity ratio of 1.62. At present, MidCap Financial's Cash Flow To Debt Ratio is projected to increase slightly based on the last few years of reporting. With a high degree of financial leverage come high-interest payments, which usually reduce MidCap Financial's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
MidCap Financial'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. MidCap Financial'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 MidCap Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect MidCap Financial's stakeholders.
For most companies, including MidCap Financial, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for MidCap Financial Investment, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, MidCap Financial's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
At present, MidCap Financial's Non Current Liabilities Total is projected to increase significantly based on the last few years of reporting. MidCap |
MidCap Financial Financial Rating
MidCap Financial Investment financial ratings play a critical role in determining how much MidCap Financial 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 MidCap Financial's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (3.00) | Unlikely Manipulator | View |
MidCap Financial Inv Debt to Cash Allocation
As MidCap Financial Investment follows its natural business cycle, the capital allocation decisions will not magically go away. MidCap Financial's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
MidCap Financial Investment currently holds 1.79 B in liabilities with Debt to Equity (D/E) ratio of 1.62, which is about average as compared to similar companies. MidCap Financial Inv has a current ratio of 1.56, which is within standard range for the sector. Note, when we think about MidCap Financial's use of debt, we should always consider it together with its cash and equity.MidCap Financial Total Assets Over Time
MidCap Financial Assets Financed by Debt
The debt-to-assets ratio shows the degree to which MidCap Financial 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.MidCap Financial Debt Ratio | 33.0 |
MidCap Net Debt
Net Debt |
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Understaning MidCap Financial Use of Financial Leverage
MidCap Financial's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures MidCap Financial's total debt position, including all outstanding debt obligations, and compares it with MidCap Financial's equity. Financial leverage can amplify the potential profits to MidCap Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if MidCap Financial is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | 1.7 B | 1 B | |
| Short and Long Term Debt Total | 1.7 B | 1.3 B | |
| Short Term Debt | 566.2 M | 448.9 M | |
| Net Debt To EBITDA | 4.5 K | 4.8 K | |
| Debt To Equity | 1.31 | 0.70 | |
| Interest Debt Per Share | 27.57 | 23.02 | |
| Debt To Assets | 0.53 | 0.33 | |
| Long Term Debt To Capitalization | 0.53 | 0.35 | |
| Total Debt To Capitalization | 0.53 | 0.35 | |
| Debt Equity Ratio | 1.31 | 0.70 | |
| Debt Ratio | 0.53 | 0.33 | |
| Cash Flow To Debt Ratio | 0.12 | 0.13 |
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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 MidCap Financial Inv is a strong investment it is important to analyze MidCap Financial'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 MidCap Financial's future performance. For an informed investment choice regarding MidCap Stock, refer to the following important reports:Check out the analysis of MidCap Financial Fundamentals Over Time. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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 MidCap Financial. If investors know MidCap 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 MidCap Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.50) | Dividend Share 1.52 | Earnings Share 1.27 | Revenue Per Share | Quarterly Revenue Growth 0.142 |
The market value of MidCap Financial Inv is measured differently than its book value, which is the value of MidCap that is recorded on the company's balance sheet. Investors also form their own opinion of MidCap Financial's value that differs from its market value or its book value, called intrinsic value, which is MidCap Financial'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 MidCap Financial's market value can be influenced by many factors that don't directly affect MidCap Financial'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 MidCap Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if MidCap Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MidCap Financial'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.