Liabilities Breakdown
135.4 M
Current Liabilities
178.4 M
Long-Term Liabilities
| Total Liabilities | 307.97 Million | |
| Current Liabilities | 135.41 Million | |
| Long-Term Liabilities | 178.36 Million | |
| Tax Liabilities | 5.93 Million |
Does Akebia Ther (USA Stocks:AKBA) has enough cash to last in September?
 | By Ellen Johnson | Macroaxis Story |
Investing in Akebia Therapeutics (NASDAQ: AKBA) stock presents a mixed bag of opportunities and risks. On the positive side, the company has a Potential Upside of 17.24, suggesting that the stock has room for growth. The Jensen Alpha of 0.432 also indicates a potential for higher returns when adjusted for risk. However, the company's financial health paints a less rosy picture. Akebia reported a significant loss in its Retained Earnings Total Equity, amounting to a staggering -1.6B. The company's Change In Working Capital also declined by -1.4M, which could signal liquidity issues. Moreover, the stock's Maximum Drawdown of 36.94 indicates a substantial risk of investment loss. Therefore, while Akebia Therapeutics stock may offer some potential for gains, investors should also consider the significant risks involved.
Deep-dive analysis
The company currently holds $99.78 million in liabilities, with a Debt to Equity (D/E) ratio of 2.15. This suggests that Akebia Therapeutics heavily relies on financing its operations through borrowing. The company's current ratio stands at 1.27, indicating a potentially precarious position in terms of meeting its financial obligations when they are due. While debt can aid Akebia Therapeutics until it encounters difficulties in paying it off, either with new capital or free cash flow, there is a risk that shareholders could end up with nothing if the company fails to meet its legal debt repayment obligations. However, a more common scenario is for companies like Akebia Therapeutics to issue additional shares at bargain prices, thereby diluting the holdings of existing shareholders. In this context, debt can be an excellent tool for Akebia Therapeutics to invest in growth at high rates of return. When considering Akebia Therapeutics' use of debt, it should always be evaluated in conjunction with cash and equity.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
Akebia Therapeutics (NASDAQ: AKBA), a key player in the Healthcare and Biotechnology industry, is currently under the spotlight as investors question whether its stock will skyrocket in September. Despite the company's significant loss of -63.2M in EBIT and a staggering -1.6B in retained earnings, there are several factors that could potentially influence the stock's performance. The company's total stockholder equity stands at 9.3M, while its net invested capital is 75.4M. These figures indicate a substantial financial commitment from shareholders and investors alike. Akebia Therapeutics also has a healthy begin period cash flow of 151.8M, which could provide the company with the necessary liquidity to navigate through any potential financial turbulence. However, the company's total operating expenses are high, amounting to 271M. This, coupled with a significant interest expense of 15.7M and an income tax expense of 13.4M, has contributed to the company's financial loss. Additionally, the company's total current liabilities and non-current liabilities total stand at 124.8M and 217.7M respectively, which could pose a significant financial risk. Despite these challenges, Akebia Therapeutics has valuable intangible assets worth 72.1M and other current assets of 33.5M. The company also reported a change to inventory of 19.8M and change receivables of 11.7M, indicating potential future revenue. With a day typical price of 1.28 and a day median price of 1.29, the stock is currently undervalued compared to its valuation real value of 1.65. This discrepancy could present an opportunity for investors. However, with two analysts holding the stock, it's clear that the market's opinion on Akebia Therapeutics is divided. In conclusion, while Akebia Therapeutics faces significant financial challenges, there are also potential opportunities that could lead to a rise in its stock price. Investors should carefully consider these factors before making a decision. Akebia Therapeutics is set to announce its earnings today, with the next financial report anticipated on November 2, 2023. Based on the company's reporting trends over the past few years, Akebia's Revenue Per Employee is predicted to see a significant increase. The Revenue Per Employee for the previous year was at 1.43 million. The Average Assets for the current year are expected to grow to approximately 473.1 million, while the Net Income Per Employee is projected to decline to 487.2 thousand. Despite many baby boomers showing indifference towards the biotechnology sector, Akebia Therapeutics presents itself as a unique investment choice for millennials. As we move into September, it's prudent to analyze if shares of Akebia Therapeutics are reasonably priced.Akebia Ther financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Akebia Ther, including all of Akebia Ther's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Akebia Ther assets, the company is considered highly leveraged. Understanding the composition and structure of overall Akebia Ther debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Akebia Total Debt
Akebia Ther liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Akebia Ther has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Akebia Ther balance sheet include debt obligations and money owed to different Akebia Ther vendors, workers, and loan providers. Below is the chart of Akebia main long-term debt accounts currently reported on its balance sheet. You can use Akebia Ther financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Akebia Ther's Liquidity
Akebia Ther financial leverage refers to using borrowed capital as a funding source to finance Akebia Ther ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Akebia Ther financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Akebia Ther's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Akebia Ther'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). Please check the breakdown between Akebia Ther's total debt and its cash.
Breaking down Akebia Ther Further
The current price rise of Akebia Ther could raise concerns from investors as the firm is trading at a share price of 1.25 on 1,012,012 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.45. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Akebia Ther partners.
Akebia Therapeutics (NASDAQ: AKBA), a leading player in the healthcare and biotechnology sector, is a stock that investors should keep a close eye on this September. Despite the company's net income reflecting a loss of $92.6M and an operating income loss of $63.2M, there are several factors that suggest potential growth. The company's total revenue stands at a robust $292.6M, with a gross profit of $141.8M. Akebia's balance sheet shows strength with total assets amounting to $351.8M, which includes $143.89M in cash and equivalents.This liquidity is supported by a healthy working capital of $60.19M. The company's current asset value is $141.02M, indicating a solid financial position. Despite a downside deviation of 6.11 and a negative Treynor Ratio of -0.65, the company's potential upside of 17.24 and a target price of $3 suggests a positive outlook. The company's stock is currently undervalued with a price to sales ratio of 0.28X, indicating potential for price appreciation. Investors should also note the company's strong cash flow position. Despite a change in cash of -$58.7M, the end period cash flow stands at $93.2M. In conclusion, despite some financial challenges, Akebia Therapeutics presents a promising investment opportunity with potential for significant growth in September. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Akebia Ther. Please refer to our Terms of Use for any information regarding our disclosure principles.