Vizsla Resources Debt
| VZLA Stock | USD 1.78 0.01 0.56% |
The current year's Net Debt To EBITDA is expected to grow to 2.52, whereas Net Debt is projected to grow to (35.7 M). With a high degree of financial leverage come high-interest payments, which usually reduce Vizsla Resources' Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0 | Current Value 0.0 | Quarterly Volatility 0.0 |
Vizsla |
Vizsla Resources Bond Ratings
Vizsla Resources Corp financial ratings play a critical role in determining how much Vizsla Resources 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 Vizsla Resources' borrowing costs.| Piotroski F Score | 2 | Frail | View |
| Beneish M Score | (4.52) | Unlikely Manipulator | View |
Vizsla Resources Corp Debt to Cash Allocation
As Vizsla Resources Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Vizsla Resources' 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.
Vizsla Resources Corp currently holds 3.68 M in liabilities. Vizsla Resources Corp has a current ratio of 4.05, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Vizsla Resources' use of debt, we should always consider it together with its cash and equity.Vizsla Resources Total Assets Over Time
Vizsla Resources 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 Vizsla Resources' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Vizsla Resources, which in turn will lower the firm's financial flexibility.Vizsla Resources Corporate Bonds Issued
Most Vizsla bonds can be classified according to their maturity, which is the date when Vizsla Resources Corp 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.
Vizsla Net Debt
Net Debt |
|
Understaning Vizsla Resources Use of Financial Leverage
Vizsla Resources' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Vizsla Resources' total debt position, including all outstanding debt obligations, and compares it with Vizsla Resources' equity. Financial leverage can amplify the potential profits to Vizsla Resources' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Vizsla Resources is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -37.5 M | -35.7 M | |
| Net Debt To EBITDA | 2.40 | 2.52 |
Also Currently Popular
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 Vizsla Resources Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vizsla Resources' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Vizsla Resources Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vizsla Resources Corp Stock:Check out the analysis of Vizsla Resources Fundamentals Over Time. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Diversified Metals & Mining 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 Vizsla Resources. If investors know Vizsla 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 Vizsla Resources 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) | Return On Assets (0.04) | Return On Equity (0.01) |
The market value of Vizsla Resources Corp is measured differently than its book value, which is the value of Vizsla that is recorded on the company's balance sheet. Investors also form their own opinion of Vizsla Resources' value that differs from its market value or its book value, called intrinsic value, which is Vizsla Resources' 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 Vizsla Resources' market value can be influenced by many factors that don't directly affect Vizsla Resources' 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 Vizsla Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if Vizsla Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vizsla Resources' 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.