Cingulate has $3.51 million in liabilities and a low debt-to-equity ratio of 0.08, indicating it may not be fully leveraging borrowing to its advantage. The company has a performance score of 9 out of 100, suggesting it has room for improvement. With a beta of 5.72, Cingulate is quite volatile compared to the market. This means it could outperform when the market rises, but it may struggle if the market declines. Investors should consider using Cingulate's Sortino ratio, skewness, and period momentum indicator, along with analyzing the relationship between its potential upside and daily change rate, to gauge future returns.
Major Takeaways
Cingulate's financial landscape raises some eyebrows, particularly when considering its total current liabilities of
10.2M against a backdrop of significant operational losses totaling
15M. With a short and long-term debt total of
3.5M, investors may wonder if the company's leverage could hinder its growth potential. The biotechnology sector can be volatile, and while CING stock has a potential upside of 11%, the risk-adjusted performance metrics suggest caution. As the fiscal year ends in December, keeping an eye on how Cingulate manages its debt will be crucial for those looking to invest.
Cingulate financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cingulate, including all of Cingulate'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 Cingulate assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Cingulate 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 Cingulate Total Liabilities
Cingulate liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Cingulate 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 Cingulate balance sheet include debt obligations and money owed to different Cingulate vendors, workers, and loan providers. Below is the chart of Cingulate short long-term liabilities accounts currently reported on its balance sheet.
You can use Cingulate
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Cingulate's Liquidity
Cingulate
financial leverage refers to using borrowed capital as a funding source to finance Cingulate ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cingulate 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 Cingulate'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 Cingulate'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 Cingulate's total debt and its cash.
Breaking it down a bit more
The current price rise of Cingulate could raise concerns from stockholders as the firm is trading at a share price of
17.69 on
98,961,693 in volume. The company executives 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 41.94. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Cingulate partners.
Asset Breakdown
3 M
Non Current Assets Total
| Total Assets | 3.32 Million |
| Net Tangible Assets | 2.44 Million |
| Non Current Assets Total | 3.03 Million |
| Non Currrent Assets Other | (12.53 Billion) |
| Other Assets | 0.0 |
| Other Current Assets | 316,137 |
| Total Current Assets | 379,823 |
In the world of investing, the saying "a penny saved is a penny earned" often rings true, especially when assessing a company's financial health. Cingulate, a biotechnology firm, is currently facing significant challenges, as evidenced by its total debt of $3.51 million against a market capitalization of just $4.18 million. With losses from operations reaching $22.8 million and a current ratio of 10.94, the company appears to have ample short-term liquidity, but its long-term viability is questionable given its negative equity of $6.9 million. Investors should be cautious, as the high debt levels coupled with ongoing losses could pose risks to future growth and stability..
Over 3 percent rise for Cingulate. What does it mean for stockholders?
Cingulate's stock has jumped over 3% today, hinting at a shift in how investors feel about the company. The drop in kurtosis to 32.12 indicates that price swings are becoming less extreme, suggesting a possible stabilization in trading. For current shareholders, this could create a more predictable investment landscape, potentially drawing in new investors seeking lower volatility. As the market adjusts to this change, it may lead to further gains and boost confidence in Cingulate's future.
However, the stock has shown significant volatility recently, which can complicate investment decisions. Understanding these trends is crucial for timing the market and managing risk, especially during downturns when prices can drop sharply.Cingulate appears to be navigating its financial landscape with a cautious optimism that could appeal to investors. With a market value of
17.69 and a consensus rating of "Buy" from analysts, the stock shows potential for growth. The estimated target price ranges from a low of
5.51 to a high of
6.73, suggesting that there is room for appreciation. While the possible downside price is just
0.18, the upside potential could reach as high as
59.09. As Cingulate continues to develop its offerings, the financial backing and analyst support may provide a solid foundation for sustained growth, making it a stock worth considering for those looking to invest in promising opportunities..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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