PhenixFIN 525 Current Debt
PFXNZ Stock | USD 22.82 0.00 0.00% |
At this time, PhenixFIN 525's Debt To Equity is fairly stable compared to the past year. Debt To Assets is likely to rise to 0.34 in 2024, despite the fact that Net Debt To EBITDA is likely to grow to (13.11). With a high degree of financial leverage come high-interest payments, which usually reduce PhenixFIN 525's Earnings Per Share (EPS).
Given that PhenixFIN 525'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 PhenixFIN 525 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 PhenixFIN 525 to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, PhenixFIN 525 is said to be less leveraged. If creditors hold a majority of PhenixFIN 525's assets, the Company is said to be highly leveraged.
PhenixFIN |
PhenixFIN 525 Financial Rating
PhenixFIN 525 financial ratings play a critical role in determining how much PhenixFIN 525 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 PhenixFIN 525's borrowing costs.Piotroski F Score | 4 | Poor | View |
Beneish M Score | (4.29) | Unlikely Manipulator | View |
PhenixFIN 525 Price To Sales Ratio Over Time
PhenixFIN 525 Assets Financed by Debt
The debt-to-assets ratio shows the degree to which PhenixFIN 525 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.PhenixFIN 525 Debt Ratio | 34.0 |
PhenixFIN Net Debt To E B I T D A
Net Debt To E B I T D A |
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Understaning PhenixFIN 525 Use of Financial Leverage
Understanding the structure of PhenixFIN 525's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to PhenixFIN 525's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
Last Reported | Projected for Next Year | ||
Net Debt To EBITDA | (13.80) | (13.11) | |
Debt To Equity | 0.52 | 0.66 | |
Interest Debt Per Share | 3.24 | 3.08 | |
Debt To Assets | 0.32 | 0.34 | |
Long Term Debt To Capitalization | 0.33 | 0.34 | |
Total Debt To Capitalization | 0.33 | 0.35 | |
Debt Equity Ratio | 0.52 | 0.66 | |
Debt Ratio | 0.32 | 0.34 | |
Cash Flow To Debt Ratio | (0.22) | (0.23) |
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When running PhenixFIN 525's price analysis, check to measure PhenixFIN 525'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 PhenixFIN 525 is operating at the current time. Most of PhenixFIN 525's value examination focuses on studying past and present price action to predict the probability of PhenixFIN 525's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PhenixFIN 525's price. Additionally, you may evaluate how the addition of PhenixFIN 525 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.