The small plunge in market price for the last few months could raise concerns from traders as the firm is trading at a share price of 22.98 on 4,775 in volume. The company directors and management did not add much value to Capital Bancorp investors in December. However, diversifying your holdings with Capital Bancorp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.31. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
How much will Capital Bancorp owe in February?
 | By Vlad Skutelnik | Macroaxis Story |
Capital Bancorp is scheduled to announce its earnings today. Capital Bancorp Accrued Expenses Turnover is increasing as compared to previous years. The last year's value of Accrued Expenses Turnover was reported at 194.76. The current Cash and Equivalents Turnover is estimated to increase to 1.63, while Average Assets are projected to decrease to under 2.2 B. As many baby boomers are still indifferent towards banks space, it makes sense to examine Capital Bancorp as a unique choice for millenniums. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
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Reviewed by Gabriel Shpitalnik
This firm currently holds 12.06 M in liabilities with Debt to Equity (D/E) ratio of 6.6, indicating Capital Bancorp may have difficulties to generate enough cash to satisfy its financial obligations. Debt can assist Capital Bancorp until it has trouble settling it off, either with new capital or with free cash flow. So, Capital Bancorp's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Capital Bancorp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Capital to invest in growth at high rates of return. When we think about Capital Bancorp's use of debt, we should always consider it together with cash and equity.Capital Bancorp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Capital Bancorp, including all of Capital Bancorp'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 Capital Bancorp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Capital Bancorp 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 Capital Total Liabilities
Capital Bancorp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Capital Bancorp 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 Capital Bancorp balance sheet include debt obligations and money owed to different Capital Bancorp vendors, workers, and loan providers. Below is the chart of Capital short long-term liabilities accounts currently reported on its balance sheet. You can use Capital Bancorp financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Capital Bancorp's Liquidity
Capital Bancorp financial leverage refers to using borrowed capital as a funding source to finance Capital Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Capital Bancorp 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 Capital Bancorp'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 Capital Bancorp'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 Capital Bancorp's total debt and its cash.
Breaking it down a bit more
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