Super League Current Debt

SLE Stock   0.64  0.04  6.67%   
Super League Enterprise holds a debt-to-equity ratio of 0.99. At present, Super League's Net Debt To EBITDA is projected to slightly decrease based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 0.08, whereas Short and Long Term Debt Total is forecasted to decline to about 760 K. . Super League's financial risk is the risk to Super League stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Super League'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. Super League'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 Super Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Super League's stakeholders.
For most companies, including Super League, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Super League Enterprise, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Super League'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
2.442
Book Value
2.093
Operating Margin
(1.04)
Profit Margin
(0.96)
Return On Assets
(0.56)
At present, Super League's Liabilities And Stockholders Equity is projected to increase significantly based on the last few years of reporting. The current year's Non Current Liabilities Total is expected to grow to about 2.1 M, whereas Change To Liabilities is forecasted to decline to about 809.6 K.
  
Check out the analysis of Super League Fundamentals Over Time.

Super League Financial Rating

Super League Enterprise financial ratings play a critical role in determining how much Super League 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 Super League's borrowing costs.
Piotroski F Score
4
PoorView
Beneish M Score
(5.45)
Unlikely ManipulatorView

Super League Enterprise Debt to Cash Allocation

Many companies such as Super League, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Super League Enterprise has 800 K in debt with debt to equity (D/E) ratio of 0.99, which is OK given its current industry classification. Super League Enterprise has a current ratio of 1.29, demonstrating that it may have difficulties to pay its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Super to invest in growth at high rates of return.

Super League Total Assets Over Time

Super League Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Super League 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.

Super League Debt Ratio

    
  3.0   
It looks as if most of the Super League's assets are financed through equity. 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 Super League's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Super League, which in turn will lower the firm's financial flexibility.

Super Net Debt

Net Debt

(6.47 Million)

At present, Super League's Net Debt is projected to decrease significantly based on the last few years of reporting.

Understaning Super League Use of Financial Leverage

Super League's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Super League's total debt position, including all outstanding debt obligations, and compares it with Super League's equity. Financial leverage can amplify the potential profits to Super League's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Super League is unable to cover its debt costs.
Last ReportedProjected for Next Year
Net Debt-6.8 M-6.5 M
Short and Long Term Debt Total800 K760 K
Short Term Debt800 K760 K
Long Term Debt1.1 M966.4 K
Short and Long Term Debt800 K813.5 K
Net Debt To EBITDA 0.27  0.28 
Debt To Equity 0.08  0.08 
Interest Debt Per Share 0.30  0.29 
Debt To Assets 0.03  0.03 
Long Term Debt To Capitalization 0.20  0.18 
Total Debt To Capitalization 0.07  0.07 
Debt Equity Ratio 0.08  0.08 
Debt Ratio 0.03  0.03 
Cash Flow To Debt Ratio(19.36)(20.33)
Please read more on our technical analysis page.

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether Super League Enterprise is a strong investment it is important to analyze Super League'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 Super League's future performance. For an informed investment choice regarding Super Stock, refer to the following important reports:
Check out the analysis of Super League Fundamentals Over Time.
You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Is Interactive Media & Services 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 Super League. If investors know Super 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 Super League listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(7.42)
Revenue Per Share
5.196
Quarterly Revenue Growth
(0.18)
Return On Assets
(0.56)
Return On Equity
(2.17)
The market value of Super League Enterprise is measured differently than its book value, which is the value of Super that is recorded on the company's balance sheet. Investors also form their own opinion of Super League's value that differs from its market value or its book value, called intrinsic value, which is Super League'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 Super League's market value can be influenced by many factors that don't directly affect Super League'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 Super League's value and its price as these two are different measures arrived at by different means. Investors typically determine if Super League is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Super League'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.
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.