Northview Acquisition Debt

NVAC Stock  USD 11.71  0.00  0.00%   
At present, Northview Acquisition's Net Debt To EBITDA 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 Northview Acquisition's Earnings Per Share (EPS).
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
0.0781
Current Value
0.0694
Quarterly Volatility
0.00485688
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Northview Acquisition's Change To Liabilities is projected to increase significantly based on the last few years of reporting.
  
Check out the analysis of Northview Acquisition Fundamentals Over Time.
For information on how to trade Northview Stock refer to our How to Trade Northview Stock guide.

Northview Acquisition Bond Ratings

Northview Acquisition Corp financial ratings play a critical role in determining how much Northview Acquisition 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 Northview Acquisition's borrowing costs.
Piotroski F Score
4
PoorView
Beneish M Score
(4.96)
Unlikely ManipulatorView

Northview Acquisition Debt to Cash Allocation

As Northview Acquisition Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Northview Acquisition'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.
Northview Acquisition Corp currently holds 944.12 K in liabilities. Northview Acquisition has a current ratio of 10.1, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Northview Acquisition's use of debt, we should always consider it together with its cash and equity.

Northview Acquisition Total Assets Over Time

Northview Acquisition Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Northview Acquisition 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.

Northview Acquisition Debt Ratio

    
  6.94   
It looks as if most of the Northview Acquisition's assets are financed through equity. 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 Northview Acquisition's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Northview Acquisition, which in turn will lower the firm's financial flexibility.

Northview Acquisition Corporate Bonds Issued

Most Northview bonds can be classified according to their maturity, which is the date when Northview Acquisition Corp 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.

Northview Net Debt

Net Debt

986,579

At present, Northview Acquisition's Net Debt is projected to increase significantly based on the last few years of reporting.

Understaning Northview Acquisition Use of Financial Leverage

Northview Acquisition's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Northview Acquisition's total debt position, including all outstanding debt obligations, and compares it with Northview Acquisition's equity. Financial leverage can amplify the potential profits to Northview Acquisition's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Northview Acquisition is unable to cover its debt costs.
Last ReportedProjected for Next Year
Net Debt939.6 K986.6 K
Short and Long Term Debt Total849.7 K755.3 K
Short and Long Term Debt849.7 K755.3 K
Short Term Debt849.7 K755.3 K
Net Debt To EBITDA 0.30  0.32 
Debt To Equity 0.15  0.13 
Interest Debt Per Share 0.14  0.12 
Debt To Assets 0.08  0.07 
Total Debt To Capitalization 0.13  0.11 
Debt Equity Ratio 0.15  0.13 
Debt Ratio 0.08  0.07 
Cash Flow To Debt Ratio(1.97)(2.07)
Please read more on our technical analysis page.

Also Currently Popular

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 Northview Acquisition offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Northview Acquisition'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 Northview Acquisition Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Northview Acquisition Corp Stock:
Check out the analysis of Northview Acquisition Fundamentals Over Time.
For information on how to trade Northview Stock refer to our How to Trade Northview Stock guide.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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 Northview Acquisition. If investors know Northview 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 Northview Acquisition 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
0.934
Earnings Share
(0.17)
Return On Assets
(0.1)
The market value of Northview Acquisition is measured differently than its book value, which is the value of Northview that is recorded on the company's balance sheet. Investors also form their own opinion of Northview Acquisition's value that differs from its market value or its book value, called intrinsic value, which is Northview Acquisition'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 Northview Acquisition's market value can be influenced by many factors that don't directly affect Northview Acquisition'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 Northview Acquisition's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northview Acquisition is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northview Acquisition'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.
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.