In the world of investing, the road to success is often paved with caution. As IMAC Holdings (NASDAQ: BACK) approaches October, investors are left to ponder the company's financial health amidst a backdrop of concerning figures. With a staggering loss of 2.9M in earnings before interest and taxes and total liabilities reaching 1.9M, the company is grappling with significant challenges. The total stockholder equity stands at a troubling -752.6K, raising red flags about its financial stability. As cash flow from operations shows a loss of 2.8M, the outlook for the upcoming months appears uncertain. Investors should closely monitor these developments as they navigate the complexities of the medical care facilities sector. IMAC Holdings is set to release its earnings today, and the outlook is intriguing. The company's return on equity has remained stable over the past year. However, its net debt to EBITDA ratio is expected to increase to 0.09, while the price-to-sales ratio may drop to 0.45. As concerns grow among baby boomers about the healthcare equipment and supplies sector, IMAC Holdings emerges as a potential investment option. So, what can shareholders expect from IMAC Holdings this October? Keep an eye on the earnings report for insights into the company's future prospects.
IMAC Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of IMAC Holdings, including all of IMAC Holdings'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 IMAC Holdings assets, the company is considered highly leveraged. Understanding the
composition and structure of overall IMAC Holdings 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.
Watch out for price decline
Please consider monitoring IMAC Holdings on a daily basis if you are holding a position in it. IMAC Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as IMAC Holdings stock to be traded above the $1 level to remain listed. If IMAC Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
Understanding IMAC Total Liabilities
IMAC Holdings liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. IMAC Holdings 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 IMAC Holdings balance sheet include debt obligations and money owed to different IMAC Holdings vendors, workers, and loan providers. Below is the chart of IMAC short long-term liabilities accounts currently reported on its balance sheet.
You can use IMAC Holdings
financial leverage analysis tool to get a better grip on understanding its financial position
How important is IMAC Holdings's Liquidity
IMAC Holdings
financial leverage refers to using borrowed capital as a funding source to finance IMAC Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. IMAC Holdings 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 IMAC Holdings' 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 IMAC Holdings' 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 IMAC Holdings's total debt and its cash.
Is IMAC Holdings valued adequately by the market?
The big decline in price over the last few months for IMAC Holdings could raise concerns from institutional investors as the firm is trading at a share price of
1.32 on
24,001 in volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility in
August. However, diversifying your holdings with IMAC Holdings or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.14. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the IMAC Holdings partners.
Asset Breakdown
723.9 K
Non Current Assets Total
1.1 M
Total Current Assets
| Total Assets | 1.09 Million |
| Other Current Assets | 318,457 |
| Total Current Assets | 1.09 Million |
| Non Current Assets Total | 723,900 |
| Non Currrent Assets Other | 466,033 |
| Other Assets | (651,510) |
| Net Tangible Assets | 9.34 Million |
| Intangible Assets | 1.17 Million |
In the world of finance, it's often said that what goes up must come down, and IMAC Holdings (NASDAQ: BACK) may be facing some turbulence as October approaches. The company reported a net income loss of 6.5 million, which raises concerns about its financial health. With a current ratio of 1.18X, it barely meets its short-term obligations, while total operating expenses of 2.5 million outpace its revenue of 5.2 million. Additionally, the company's net working capital stands at a troubling negative 752.6K, indicating potential liquidity issues. Investors should keep a close eye on these metrics as they navigate the upcoming months..
Our perspective of the latest IMAC Holdings rise
IMAC Holdings has recently experienced a significant uptick, with its stock currently priced at around $10.69. Investors should carefully consider the potential for further gains against the inherent risks. While this price indicates some room for growth, it's essential to remain cautious as the market faces various economic challenges. Monitoring the company's performance and overall market trends will be vital for anyone thinking about investing in IMAC Holdings. As of September 16, 2024, the company has a standard deviation of 6.69, a coefficient of variation of 879.31, and a market risk-adjusted performance of 9.98.
Analyzing past data can help identify patterns that may predict the company's future stock movements.Investing in IMAC Holdings could be a compelling opportunity for those willing to take a calculated risk. With an analyst consensus rating of "Strong Buy," the stock shows potential for significant growth, especially considering the highest estimated target price of
38.3. While the company faces challenges, including an EPS estimate of -3.48 for the next year, the possible upside price of
7.32 suggests that there may be room for recovery. As the fiscal year ends in December, investors should keep a close eye on upcoming developments that could influence the stock's trajectory. If IMAC Holdings can navigate its current hurdles, it might just turn the corner and reward its shareholders handsomely..
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
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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 IMAC Holdings. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]