P3 Health Debt
| PIII Stock | USD 0.17 0.01 5.56% |
P3 Health Partners holds a debt-to-equity ratio of 0.082. As of now, P3 Health's Debt To Assets are decreasing as compared to previous years. The P3 Health's current Total Debt To Capitalization is estimated to increase to 1.05, while Short and Long Term Debt Total is projected to decrease to under 85.3 M. With a high degree of financial leverage come high-interest payments, which usually reduce P3 Health's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
P3 Health'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. P3 Health'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 PIII Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect P3 Health's stakeholders.
For most companies, including P3 Health, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for P3 Health Partners, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, P3 Health's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
The current Total Current Liabilities is estimated to decrease to about 194.7 M. The current Liabilities And Stockholders Equity is estimated to decrease to about 544.8 MPIII |
P3 Health Bond Ratings
P3 Health Partners financial ratings play a critical role in determining how much P3 Health 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 P3 Health's borrowing costs.| Piotroski F Score | 2 | Frail | View |
| Beneish M Score | (2.74) | Unlikely Manipulator | View |
P3 Health Partners Debt to Cash Allocation
As P3 Health Partners follows its natural business cycle, the capital allocation decisions will not magically go away. P3 Health'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.
P3 Health Partners currently holds 121.94 M in liabilities with Debt to Equity (D/E) ratio of 0.08, which may suggest the company is not taking enough advantage from borrowing. P3 Health Partners has a current ratio of 0.74, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about P3 Health's use of debt, we should always consider it together with its cash and equity.P3 Health Common Stock Shares Outstanding Over Time
P3 Health Assets Financed by Debt
The debt-to-assets ratio shows the degree to which P3 Health 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.P3 Health Debt Ratio | 24.0 |
P3 Health Corporate Bonds Issued
Most PIII bonds can be classified according to their maturity, which is the date when P3 Health Partners 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.
PIII Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning P3 Health Use of Financial Leverage
Understanding the composition and structure of P3 Health's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of P3 Health's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 140.2 M | 85.3 M | |
| Net Debt | 98.5 M | 103.4 M | |
| Long Term Debt | 124.6 M | 75.5 M | |
| Short and Long Term Debt | 4.2 M | 4.4 M | |
| Short Term Debt | 3.1 M | 3 M | |
| Net Debt To EBITDA | (1.21) | (1.15) | |
| Debt To Equity | 0.77 | 0.73 | |
| Interest Debt Per Share | 1.31 | 1.36 | |
| Debt To Assets | 0.16 | 0.24 | |
| Long Term Debt To Capitalization | 0.50 | 0.47 | |
| Total Debt To Capitalization | 0.53 | 1.05 | |
| Debt Equity Ratio | 0.77 | 0.73 | |
| Debt Ratio | 0.16 | 0.24 | |
| Cash Flow To Debt Ratio | (0.56) | (0.59) |
Currently Active Assets on Macroaxis
When determining whether P3 Health Partners is a strong investment it is important to analyze P3 Health's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact P3 Health's future performance. For an informed investment choice regarding PIII Stock, refer to the following important reports:Check out the analysis of P3 Health Fundamentals Over Time. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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 P3 Health. If investors know PIII 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 P3 Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.86) | Revenue Per Share | Quarterly Revenue Growth 0.256 | Return On Assets | Return On Equity |
The market value of P3 Health Partners is measured differently than its book value, which is the value of PIII that is recorded on the company's balance sheet. Investors also form their own opinion of P3 Health's value that differs from its market value or its book value, called intrinsic value, which is P3 Health'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 P3 Health's market value can be influenced by many factors that don't directly affect P3 Health'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 P3 Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if P3 Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, P3 Health'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.