Asset Breakdown
11.5 M
Assets Non Current
10.5 M
Goodwill
8.8 M
Current Assets
| Total Assets | 20.3 Million | |
| Current Assets | 8.84 Million | |
| Assets Non Current | 11.46 Million | |
| Goodwill | 10.46 Million |
You think Healthcare Triangle (USA Stocks:HCTI) debt is an issue for traders?
 | By Nico Santiago | Macroaxis Story |
As we step into October, investors are keenly observing the potential of Healthcare Triangle, a prominent player in the Healthcare sector listed on NASDAQ. Despite the company's recent financial struggles, with a net loss of 9.6M and an operating income loss of 10.4M, there are several indicators that suggest a possible upside for the stock. The company's total stockholder equity stands at 12.4M, and it has total assets worth 20.8M, demonstrating a solid financial base. Moreover, the company's total cash from financing activities amounts to 5.5M, indicating a robust financial strategy despite the losses. One of the most compelling indicators of the stock's potential is the analyst consensus. The stock has been rated as a 'Strong Buy' by analysts, with one analyst even suggesting a highest estimated target price of 20. This is significantly higher than the current valuation market value of 4.36, suggesting a possible upside price of 17.59. Furthermore, the company has shown a positive change in working capital of 4.3M and has a relatively low net debt of 1.1M. Despite a depreciation and amortization of 3.4M, the company's total current assets stand at 7.7M, further indicating its financial resilience. In conclusion, despite the recent financial setbacks, there are several indicators that suggest a potential upside for Healthcare Triangle stock in October. However, as with any investment, potential investors should conduct thorough research and consider their risk tolerance before making a decision. The upcoming fiscal quarter end for Healthcare Triangle is anticipated to be on September 30, 2023. Compared to previous years, the Debt to Equity Ratio of Healthcare Triangle is showing a downward trend. The Debt to Equity Ratio was reported at 0.68 last year. The current Gross Margin is projected to rise to 0.28, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to decrease to -$6.1 million. While some millennials may be indifferent towards the healthcare equipment and supplies sector, it is worthwhile to consider Healthcare Triangle as a unique investment option.
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Reviewed by Raphi Shpitalnik
Healthcare Triangle currently carries $2.41 million in liabilities, with a Debt to Equity (D/E) ratio of 0.23. This might imply that Healthcare Triangle is not leveraging borrowing to its full advantage. The asset utilization indicator measures the revenue generated for every dollar of assets reported by a company. Currently, Healthcare Triangle has an asset utilization ratio of 221.0 percent, meaning that the company generates $2.21 for each dollar of assets. An increasing asset utilization ratio indicates that Healthcare Triangle is becoming more efficient with each dollar of assets it employs in its daily operations.
Continued study
Despite the healthcare industry's volatility, Healthcare Triangle's stock shows promise in October, primarily due to its robust financial metrics. With a mean deviation of 6.87 and a standard deviation of 13.78, the stock displays a considerable amount of risk, but it's balanced by a Jensen Alpha of 1.27, indicating a decent risk-adjusted performance. Moreover, the company's total risk alpha of 0.5837 suggests it has a higher potential for returns when compared to its inherent risks. From a leverage perspective, the company's issuance of capital stock stands at 5.9M, providing a solid foundation for future growth. The company's net receivables amount to 5.6M, indicating a healthy cash flow. However, investors should be aware of the company's investments, which resulted in a loss of 3.3M. Despite this, the company's change in working capital, standing at 4.3M, indicates a positive financial health. In conclusion, while Healthcare Triangle's stock presents certain risks, its strong financial metrics and promising risk-adjusted performance suggest potential for investors willing to take on a higher level of risk. Healthcare Triangle financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Healthcare Triangle, including all of Healthcare Triangle'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 Healthcare Triangle assets, the company is considered highly leveraged. Understanding the composition and structure of overall Healthcare Triangle 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 Healthcare Triangle on a daily basis if you are holding a position in it. Healthcare Triangle 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 Healthcare Triangle stock to be traded above the $1 level to remain listed. If Healthcare Triangle 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.
How important is Healthcare Triangle's Liquidity
Healthcare Triangle financial leverage refers to using borrowed capital as a funding source to finance Healthcare Triangle ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Healthcare Triangle 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 Healthcare Triangle'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 Healthcare Triangle'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 Healthcare Triangle's total debt and its cash.
Detailed Perspective On Healthcare Triangle
The entity reported the previous year's revenue of 45.89 M. Net Loss for the year was (9.61 M) with profit before overhead, payroll, taxes, and interest of 10.52 M.
As we enter October, the question arises whether there is still potential for Healthcare Triangle stock. Despite the company's struggles, with an operating income and EBIT both showing losses of $10.4M, there are some positive indicators. The company's net assets stand at a solid $20.76M, with total assets matching this figure. This is supported by a relatively low total debt of $2.41M and a manageable net debt of $1.1M.However, the company's cost of revenue is high at $34.6M, which has contributed to a negative return on assets of -0.38. The company's total operating expenses are also significant at $21.7M, with other operating expenses reaching a staggering $56.3M. Despite these challenges, the company's price to book ratio is low at 0.38X, suggesting the stock may be undervalued. The risk-adjusted performance of 0.0628 and market risk-adjusted performance of 6.33 also indicate potential for investors willing to take on some risk. In conclusion, while Healthcare Triangle has its financial challenges, there may still be potential for the stock in October for risk-tolerant investors. However, potential investors should carefully consider the company's high operating expenses and negative income figures. .
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