PAMT P Current Debt
| PAMT Stock | 18.97 0.67 3.66% |
PAMT P holds a debt-to-equity ratio of 0.04. Net Debt is likely to gain to about 170.8 M in 2024, whereas Long Term Debt is likely to drop slightly above 162.1 M in 2024. . PAMT P's financial risk is the risk to PAMT P stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
PAMT P'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. PAMT P'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 PAMT Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect PAMT P's stakeholders.
PAMT P Quarterly Net Debt |
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For most companies, including PAMT P, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for PAMT P, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, PAMT P'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 1.3376 | Book Value 14.182 | Operating Margin 0.0115 | Profit Margin (0) | Return On Assets 0.0001 |
Given that PAMT P's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which PAMT P is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of PAMT P to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, PAMT P is said to be less leveraged. If creditors hold a majority of PAMT P's assets, the Company is said to be highly leveraged.
At this time, PAMT P's Total Current Liabilities is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 322.9 M in 2024, whereas Non Current Liabilities Other is likely to drop slightly above 472.5 K in 2024. PAMT |
PAMT P Financial Rating
PAMT P financial ratings play a critical role in determining how much PAMT P 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 PAMT P's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (3.82) | Unlikely Manipulator | View |
PAMT P Debt to Cash Allocation
PAMT P currently holds 57.65 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. PAMT P has a current ratio of 1.0, suggesting that it may have difficulties to pay its financial obligations when due. Note, when we think about PAMT P's use of debt, we should always consider it together with its cash and equity.PAMT P Total Assets Over Time
PAMT P Assets Financed by Debt
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 PAMT P's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of PAMT P, which in turn will lower the firm's financial flexibility.PAMT Net Debt
Net Debt |
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Understaning PAMT P Use of Financial Leverage
PAMT P's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to PAMT P's current equity. If creditors own a majority of PAMT P's assets, the company is considered highly leveraged. Understanding the composition and structure of PAMT P's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Net Debt | 161.1 M | 170.8 M | |
| Long Term Debt | 204.1 M | 162.1 M | |
| Short and Long Term Debt | 57.6 M | 47.4 M |
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Additional Tools for PAMT Stock Analysis
When running PAMT P's price analysis, check to measure PAMT P'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 PAMT P is operating at the current time. Most of PAMT P's value examination focuses on studying past and present price action to predict the probability of PAMT P's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PAMT P's price. Additionally, you may evaluate how the addition of PAMT P 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.