Taysha Gene Debt
| TSHA Stock | USD 1.93 0.05 2.66% |
Taysha Gene Therapies holds a debt-to-equity ratio of 1.931. At present, Taysha Gene's Interest Debt Per Share is projected to increase slightly based on the last few years of reporting. The current year's Long Term Debt To Capitalization is expected to grow to 0.43, whereas Net Debt is forecasted to decline to (100 M). With a high degree of financial leverage come high-interest payments, which usually reduce Taysha Gene's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Taysha Gene'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. Taysha Gene'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 Taysha Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Taysha Gene's stakeholders.
For most companies, including Taysha Gene, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Taysha Gene Therapies, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Taysha Gene's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
At present, Taysha Gene's Non Current Liabilities Other is projected to increase significantly based on the last few years of reporting. The current year's Change To Liabilities is expected to grow to about 40.5 M, whereas Total Current Liabilities is forecasted to decline to about 34.9 M. Taysha |
Taysha Gene Bond Ratings
Taysha Gene Therapies financial ratings play a critical role in determining how much Taysha Gene 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 Taysha Gene's borrowing costs.| Piotroski F Score | 2 | Frail | View |
| Beneish M Score | (3.36) | Unlikely Manipulator | View |
Taysha Gene Therapies Debt to Cash Allocation
As Taysha Gene Therapies follows its natural business cycle, the capital allocation decisions will not magically go away. Taysha Gene'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.
Taysha Gene Therapies currently holds 61.11 M in liabilities with Debt to Equity (D/E) ratio of 1.93, which is about average as compared to similar companies. Taysha Gene Therapies has a current ratio of 1.75, which is within standard range for the sector. Note, when we think about Taysha Gene's use of debt, we should always consider it together with its cash and equity.Taysha Gene Total Assets Over Time
Taysha Gene Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Taysha Gene 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.Taysha Gene Debt Ratio | 19.0 |
Taysha Gene Corporate Bonds Issued
Most Taysha bonds can be classified according to their maturity, which is the date when Taysha Gene Therapies 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.
Taysha Net Debt
Net Debt |
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Understaning Taysha Gene Use of Financial Leverage
Taysha Gene's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Taysha Gene's total debt position, including all outstanding debt obligations, and compares it with Taysha Gene's equity. Financial leverage can amplify the potential profits to Taysha Gene's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Taysha Gene is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -95.3 M | -100 M | |
| Short and Long Term Debt Total | 55 M | 49.1 M | |
| Long Term Debt | 46.6 M | 42.4 M | |
| Short Term Debt | 1.9 M | 1.7 M | |
| Net Debt To EBITDA | 0.91 | 0.86 | |
| Debt To Equity | 0.49 | 0.46 | |
| Interest Debt Per Share | 0.35 | 0.47 | |
| Debt To Assets | 0.21 | 0.19 | |
| Long Term Debt To Capitalization | 0.32 | 0.43 | |
| Total Debt To Capitalization | 0.32 | 0.43 | |
| Debt Equity Ratio | 0.49 | 0.46 | |
| Debt Ratio | 0.21 | 0.19 | |
| Cash Flow To Debt Ratio | (1.62) | (1.70) |
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Is Biotechnology 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 Taysha Gene. If investors know Taysha 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 Taysha Gene listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.63 | Revenue Per Share | Quarterly Revenue Growth (0.62) | Return On Assets | Return On Equity |
The market value of Taysha Gene Therapies is measured differently than its book value, which is the value of Taysha that is recorded on the company's balance sheet. Investors also form their own opinion of Taysha Gene's value that differs from its market value or its book value, called intrinsic value, which is Taysha Gene'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 Taysha Gene's market value can be influenced by many factors that don't directly affect Taysha Gene'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 Taysha Gene's value and its price as these two are different measures arrived at by different means. Investors typically determine if Taysha Gene is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taysha Gene'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.