Playlogic Entertainment Current Debt
PLGC Stock | USD 0.0002 0.00 0.000005% |
As of March 25, 2025, Long Term Debt is expected to decline to about 983.9 K. In addition to that, Short and Long Term Debt is expected to decline to about 47.2 K With a high degree of financial leverage come high-interest payments, which usually reduce Playlogic Entertainment's Earnings Per Share (EPS).
The current year's Change To Liabilities is expected to grow to about 4.5 M, whereas Total Current Liabilities is forecasted to decline to about 11.3 M. Playlogic |
Playlogic Entertainment Financial Rating
Playlogic Entertainment financial ratings play a critical role in determining how much Playlogic Entertainment 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 Playlogic Entertainment's borrowing costs.Piotroski F Score | 1 | Very Weak | View |
Beneish M Score | (1.58) | Possible Manipulator | View |
Playlogic Entertainment Debt to Cash Allocation
As Playlogic Entertainment follows its natural business cycle, the capital allocation decisions will not magically go away. Playlogic Entertainment'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.
Playlogic Entertainment currently holds 43.2 K in liabilities. Playlogic Entertainment has a current ratio of 0.5, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Playlogic Entertainment's use of debt, we should always consider it together with its cash and equity.
Playlogic Entertainment Total Assets Over Time
Playlogic Entertainment 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 Playlogic Entertainment's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Playlogic Entertainment, which in turn will lower the firm's financial flexibility.Playlogic Long Term Debt
Long Term Debt |
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At present, Playlogic Entertainment's Long Term Debt is projected to increase significantly based on the last few years of reporting.
Understaning Playlogic Entertainment Use of Financial Leverage
Playlogic Entertainment's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Playlogic Entertainment's total debt position, including all outstanding debt obligations, and compares it with Playlogic Entertainment's equity. Financial leverage can amplify the potential profits to Playlogic Entertainment's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Playlogic Entertainment is unable to cover its debt costs.
Last Reported | Projected for Next Year | ||
Long Term Debt | 1.1 M | 983.9 K | |
Short and Long Term Debt | 49.7 K | 47.2 K |
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Check out the analysis of Playlogic Entertainment Fundamentals Over Time. For information on how to trade Playlogic Stock refer to our How to Trade Playlogic Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Interactive Home Entertainment 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 Playlogic Entertainment. If investors know Playlogic 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 Playlogic Entertainment listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.02) | Revenue Per Share 0.248 | Quarterly Revenue Growth 1.112 | Return On Assets (0.47) |
The market value of Playlogic Entertainment is measured differently than its book value, which is the value of Playlogic that is recorded on the company's balance sheet. Investors also form their own opinion of Playlogic Entertainment's value that differs from its market value or its book value, called intrinsic value, which is Playlogic Entertainment'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 Playlogic Entertainment's market value can be influenced by many factors that don't directly affect Playlogic Entertainment'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 Playlogic Entertainment's value and its price as these two are different measures arrived at by different means. Investors typically determine if Playlogic Entertainment is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Playlogic Entertainment'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.