enVVeno Medical Corp Corporate Bonds and Leverage Analysis
| NVNO Stock | USD 3.46 0.07 1.98% |
enVVeno Medical Corp holds a debt-to-equity ratio of 0.04. At this time, EnVVeno Medical's Short and Long Term Debt Total is very stable compared to the past year. As of the 27th of February 2025, Debt To Equity is likely to grow to 0.03, while Net Debt is likely to drop (2.1 M). With a high degree of financial leverage come high-interest payments, which usually reduce EnVVeno Medical's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
EnVVeno Medical'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. EnVVeno Medical'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 EnVVeno Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect EnVVeno Medical's stakeholders.
For most companies, including EnVVeno Medical, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for enVVeno Medical Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, EnVVeno Medical's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
At this time, EnVVeno Medical's Total Current Liabilities is very stable compared to the past year. As of the 27th of February 2025, Liabilities And Stockholders Equity is likely to grow to about 58.7 M, while Non Current Liabilities Other is likely to drop about 1.1 M. EnVVeno |
Given the importance of EnVVeno Medical's capital structure, the first step in the capital decision process is for the management of EnVVeno Medical 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 enVVeno Medical Corp to issue bonds at a reasonable cost.
EnVVeno Medical Bond Ratings
enVVeno Medical Corp financial ratings play a critical role in determining how much EnVVeno Medical 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 EnVVeno Medical's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (4.16) | Unlikely Manipulator | View |
enVVeno Medical Corp Debt to Cash Allocation
As enVVeno Medical Corp follows its natural business cycle, the capital allocation decisions will not magically go away. EnVVeno Medical'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.
enVVeno Medical Corp currently holds 1.4 M in liabilities with Debt to Equity (D/E) ratio of 0.04, which may suggest the company is not taking enough advantage from borrowing. enVVeno Medical Corp has a current ratio of 20.37, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about EnVVeno Medical's use of debt, we should always consider it together with its cash and equity.EnVVeno Medical Total Assets Over Time
EnVVeno Medical Assets Financed by Debt
The debt-to-assets ratio shows the degree to which EnVVeno Medical 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.EnVVeno Medical Debt Ratio | 3.15 |
EnVVeno Medical Corporate Bonds Issued
EnVVeno Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning EnVVeno Medical Use of Financial Leverage
Leverage ratios show EnVVeno Medical's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of EnVVeno Medical's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 1.6 M | 1.6 M | |
| Net Debt | -2 M | -2.1 M | |
| Short Term Debt | 304.2 K | 289 K | |
| Short and Long Term Debt | 281.4 K | 267.4 K | |
| Net Debt To EBITDA | 0.08 | 0.08 | |
| Debt To Equity | 0.03 | 0.03 | |
| Interest Debt Per Share | 0.13 | 0.12 | |
| Debt To Assets | 0.03 | 0.03 | |
| Total Debt To Capitalization | 0.03 | 0.03 | |
| Debt Equity Ratio | 0.03 | 0.03 | |
| Debt Ratio | 0.03 | 0.03 | |
| Cash Flow To Debt Ratio | (15.47) | (14.69) |
Check out the analysis of EnVVeno Medical Fundamentals Over Time. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Is Health Care Equipment & Supplies 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 EnVVeno Medical. If investors know EnVVeno 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 EnVVeno Medical 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 enVVeno Medical Corp is measured differently than its book value, which is the value of EnVVeno that is recorded on the company's balance sheet. Investors also form their own opinion of EnVVeno Medical's value that differs from its market value or its book value, called intrinsic value, which is EnVVeno Medical'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 EnVVeno Medical's market value can be influenced by many factors that don't directly affect EnVVeno Medical'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 EnVVeno Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if EnVVeno Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EnVVeno Medical'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.