Neo Concept Debt
| NCI Stock | USD 0.55 0.01 1.79% |
Neo Concept Internat has over 54.64 Million in debt which may indicate that it relies heavily on debt financing. As of now, Neo Concept's Net Debt To EBITDA is decreasing as compared to previous years. The Neo Concept's current Total Debt To Capitalization is estimated to increase to 1.14, while Long Term Debt is projected to decrease to under 320.7 K. With a high degree of financial leverage come high-interest payments, which usually reduce Neo Concept's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Neo Concept'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. Neo Concept'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 Neo Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Neo Concept's stakeholders.
For most companies, including Neo Concept, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Neo Concept International Group, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Neo Concept'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 (0.13) | Operating Margin 0.1115 | Profit Margin 0.0253 | Return On Assets 0.0854 |
Neo |
Neo Concept Bond Ratings
Neo Concept International Group financial ratings play a critical role in determining how much Neo Concept 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 Neo Concept's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | 0.17 | Possible Manipulator | View |
Neo Concept Internat Debt to Cash Allocation
As Neo Concept International Group follows its natural business cycle, the capital allocation decisions will not magically go away. Neo Concept'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.
Neo Concept International Group has 54.64 M in debt with debt to equity (D/E) ratio of 15.8, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Neo Concept Internat has a current ratio of 2.4, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Neo to invest in growth at high rates of return. Neo Concept Total Assets Over Time
Neo Concept Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Neo Concept 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.Neo Concept Debt Ratio | 25.0 |
Neo Concept Corporate Bonds Issued
Most Neo bonds can be classified according to their maturity, which is the date when Neo Concept International Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Neo Long Term Debt
Long Term Debt |
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Understaning Neo Concept Use of Financial Leverage
Understanding the composition and structure of Neo Concept's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Neo Concept's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 337.6 K | 320.7 K | |
| Net Debt | 48.8 M | 60.7 M | |
| Short Term Debt | 31.5 M | 34 M | |
| Short and Long Term Debt Total | 54.6 M | 100 M | |
| Short and Long Term Debt | 30.8 M | 29.2 M | |
| Net Debt To EBITDA | 3.27 | 3.44 | |
| Debt To Equity | (12.88) | (12.24) | |
| Interest Debt Per Share | 1.83 | 1.55 | |
| Debt To Assets | 0.34 | 0.25 | |
| Long Term Debt To Capitalization | (0.01) | (0.01) | |
| Total Debt To Capitalization | 1.08 | 1.14 | |
| Debt Equity Ratio | (12.88) | (12.24) | |
| Debt Ratio | 0.34 | 0.25 | |
| Cash Flow To Debt Ratio | (1.60) | (1.52) |
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When determining whether Neo Concept Internat offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Neo Concept'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 Neo Concept International Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Neo Concept International Group Stock:Check out the analysis of Neo Concept Fundamentals Over Time. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Is Research & Consulting Services 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 Neo Concept. If investors know Neo 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 Neo Concept 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 2.523 | Earnings Share 0.03 | Revenue Per Share 9.678 | Quarterly Revenue Growth (0.38) | Return On Assets 0.0854 |
The market value of Neo Concept Internat is measured differently than its book value, which is the value of Neo that is recorded on the company's balance sheet. Investors also form their own opinion of Neo Concept's value that differs from its market value or its book value, called intrinsic value, which is Neo Concept'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 Neo Concept's market value can be influenced by many factors that don't directly affect Neo Concept'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 Neo Concept's value and its price as these two are different measures arrived at by different means. Investors typically determine if Neo Concept is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Neo Concept'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.