Stillwater Critical 552953CD1 Bond

PGE Stock  CAD 0.14  0.00  0.00%   
Stillwater Critical has over 735,768 in debt which may indicate that it relies heavily on debt financing. At this time, Stillwater Critical's Short and Long Term Debt Total is fairly stable compared to the past year. Debt To Equity is likely to climb to 0.01 in 2024, whereas Short and Long Term Debt is likely to drop slightly above 11.1 K in 2024. . Stillwater Critical's financial risk is the risk to Stillwater Critical stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Stillwater Critical'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. Stillwater Critical'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 Stillwater Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Stillwater Critical's stakeholders.
For most companies, including Stillwater Critical, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Stillwater Critical Minerals, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Stillwater Critical'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
5.163
Book Value
0.021
Return On Assets
(0.37)
Return On Equity
(0.62)
Total Current Liabilities is likely to drop to about 524.7 K in 2024. Liabilities And Stockholders Equity is likely to drop to about 2.7 M in 2024
  
Check out the analysis of Stillwater Critical Fundamentals Over Time.
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Given the importance of Stillwater Critical's capital structure, the first step in the capital decision process is for the management of Stillwater Critical 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 Stillwater Critical Minerals to issue bonds at a reasonable cost.
Popular NameStillwater Critical MGM Resorts International
SpecializationOther Industrial Metals & Mining
Equity ISIN CodeCA86074L1031
Bond Issue ISIN CodeUS552953CD18
View All Stillwater Critical Outstanding Bonds

Stillwater Critical Outstanding Bond Obligations

Understaning Stillwater Critical Use of Financial Leverage

Understanding the structure of Stillwater Critical's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Stillwater Critical'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 ReportedProjected for Next Year
Net Debt-149.4 K-156.9 K
Short and Long Term Debt Total9.9 K10.9 K
Short and Long Term Debt13.2 K11.1 K
Short Term Debt13.2 K11.1 K
Long Term Debt517 K459.6 K
Net Debt To EBITDA 0.43  0.34 
Debt To Equity 0.01  0.01 
Debt To Assets 0.01  0.01 
Total Debt To Capitalization 0.01  0.01 
Debt Equity Ratio 0.01  0.01 
Debt Ratio 0.01  0.01 
Cash Flow To Debt Ratio(98.94)(103.89)
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Additional Tools for Stillwater Stock Analysis

When running Stillwater Critical's price analysis, check to measure Stillwater Critical'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 Stillwater Critical is operating at the current time. Most of Stillwater Critical's value examination focuses on studying past and present price action to predict the probability of Stillwater Critical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Stillwater Critical's price. Additionally, you may evaluate how the addition of Stillwater Critical 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.