InspireMD Volcan Bond

NSPR Stock  USD 3.00  0.02  0.67%   
InspireMD holds a debt-to-equity ratio of 0.068. At this time, InspireMD's Short and Long Term Debt Total is relatively stable compared to the past year. As of 12/23/2024, Short Term Debt is likely to grow to about 945.1 K, while Long Term Debt Total is likely to drop slightly above 939.6 K. . InspireMD's financial risk is the risk to InspireMD stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

InspireMD'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. InspireMD'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 InspireMD Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect InspireMD's stakeholders.
For most companies, including InspireMD, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for InspireMD, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, InspireMD's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
1.9113
Book Value
1.608
Operating Margin
(4.68)
Return On Assets
(0.37)
Return On Equity
(0.67)
At this time, InspireMD's Liabilities And Stockholders Equity is relatively stable compared to the past year. As of 12/23/2024, Non Current Liabilities Other is likely to grow to about 2.3 M, while Total Current Liabilities is likely to drop slightly above 4.2 M.
  
Check out the analysis of InspireMD Fundamentals Over Time.
To learn how to invest in InspireMD Stock, please use our How to Invest in InspireMD guide.
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Given the importance of InspireMD's capital structure, the first step in the capital decision process is for the management of InspireMD to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of InspireMD to issue bonds at a reasonable cost.
Popular NameInspireMD Volcan Compania Minera
SpecializationHealth Care Equipment & Services
Equity ISIN CodeUS45779A8466
Bond Issue ISIN CodeUSP98047AC08
S&P Rating
Others
Maturity Date11th of February 2026
Issuance Date11th of February 2021
Coupon4.375 %
View All InspireMD Outstanding Bonds

InspireMD Outstanding Bond Obligations

Understaning InspireMD Use of Financial Leverage

InspireMD's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to InspireMD's current equity. If creditors own a majority of InspireMD's assets, the company is considered highly leveraged. Understanding the composition and structure of InspireMD's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last ReportedProjected for Next Year
Net Debt-9.6 M-9.2 M
Short and Long Term Debt Total1.6 M2.7 M
Short Term Debt557 K945.1 K
Long Term Debt Total989.1 K939.6 K
Net Debt To EBITDA 0.38  0.34 
Debt To Equity 0.76  0.80 
Interest Debt Per Share 0.02  0.02 
Debt To Assets 0.26  0.37 
Long Term Debt To Capitalization(0.68)(0.65)
Total Debt To Capitalization 0.36  0.69 
Debt Equity Ratio 0.76  0.80 
Debt Ratio 0.26  0.37 
Cash Flow To Debt Ratio(2.52)(2.64)
Please read more on our technical analysis page.

Pair Trading with InspireMD

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if InspireMD position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in InspireMD will appreciate offsetting losses from the drop in the long position's value.

Moving together with InspireMD Stock

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Moving against InspireMD Stock

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The ability to find closely correlated positions to InspireMD could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace InspireMD when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back InspireMD - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling InspireMD to buy it.
The correlation of InspireMD is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as InspireMD moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if InspireMD moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for InspireMD can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Additional Tools for InspireMD Stock Analysis

When running InspireMD's price analysis, check to measure InspireMD'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 InspireMD is operating at the current time. Most of InspireMD's value examination focuses on studying past and present price action to predict the probability of InspireMD's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move InspireMD's price. Additionally, you may evaluate how the addition of InspireMD 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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.