Liabilities Breakdown
540.4 M
Current Liabilities
335.9 M
Long-Term Liabilities
| Total Liabilities | 876.3 Million | |
| Current Liabilities | 540.4 Million | |
| Long-Term Liabilities | 335.89 Million |
Will Immunitybio (USA Stocks:IBRX) stockholders stop to exit in September?
 | By Ellen Johnson | Macroaxis Story |
ImmunityBio currently holds liabilities amounting to $723.77 million. The company's current ratio stands at 0.3, suggesting that it has a negative working capital and may struggle to meet its financial obligations when they are due. While debt can provide temporary relief for ImmunityBio, issues may arise if the company encounters difficulties in paying it off, either through raising new capital or generating free cash flow. In such a scenario, ImmunityBio's shareholders could potentially lose their entire investment if the company fails to meet its legal obligations to repay its debt. However, it's more common for companies like ImmunityBio to issue additional shares at discounted prices, thereby diluting the value of existing shares. In this context, debt can serve as an effective tool for ImmunityBio to fund growth at high rates of return. When evaluating ImmunityBio's debt, it's important to consider it in conjunction with the company's cash and equity positions.
Advanced assessment of Immunitybio
As we approach September, ImmunityBio (USA Stocks: IBRX) presents an intriguing investment opportunity. With a coefficient of variation at 8.4K and a potential upside of 15.7%, the stock offers a degree of volatility that could be leveraged for substantial gains. However, investors should be aware of the company's financial health. ImmunityBio has a significant net borrowing of $174.1M and a free cash flow showing a loss of $436.9M. The company has a considerable amount of common stock shares outstanding at 399.9M, which could dilute future earnings. Despite these concerns, the company's other stockholder equity stands at a robust $1.9B, indicating a strong financial backbone. Therefore, the decision to trade ImmunityBio in September should be based on an investor's risk tolerance and investment strategy.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 Michael Smolkin
As we approach September, investors are keenly evaluating the potential of ImmunityBio (USA Stocks: IBRX), a key player in the healthcare and biotechnology sector. With a total liability of $812.2M and net invested capital of $225.8M, the company's financial position is worth examining. Despite a significant loss in retained earnings, amounting to $2.4B, ImmunityBio has managed to maintain a solid footing in the industry. The company's total operating expenses stand at $350.9M, with selling, general and administrative expenses accounting for $102.7M. ImmunityBio has also made substantial capital expenditures of $99.4M, indicating a commitment to growth and expansion. This is further evidenced by the company's property, plant, and equipment net value of $189.4M. However, it's worth noting that the company has a short and long-term debt total of $723.8M, with long-term debt accounting for $241.3M. Other current liabilities stand at $45.3M, and there has been a change in working capital to the tune of -$8M. ImmunityBio's stock performance is also of interest to investors. With 399.9M common stock shares outstanding, the company's valuation hype value is 1.96, while the real value is estimated at 2.61. The lowest estimated target price from analysts is $4. Given these financial indicators, is September the perfect time to trade ImmunityBio stocks? Investors need to consider the company's financial health, market position, and future growth prospects before making a decision. ImmunityBio is set to announce its earnings today, with the forthcoming quarterly report anticipated on August 10, 2023. The company's Total Assets Per Share remain relatively stable at present, compared to the previous year. In 2022, ImmunityBio reported Total Assets Per Share at 0.86. The Quick Ratio is projected to increase to 0.22 in 2023, while the Net Income Per Employee is expected to decrease to $619.9K in the same year. As many millennials are steering clear of the biotechnology sector, it's prudent to delve deeper into ImmunityBio and comprehend its current market trends. So, what exactly can ImmunityBio shareholders expect in September?Immunitybio financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Immunitybio, including all of Immunitybio'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 Immunitybio assets, the company is considered highly leveraged. Understanding the composition and structure of overall Immunitybio 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 Immunitybio Total Debt
Immunitybio liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Immunitybio 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 Immunitybio balance sheet include debt obligations and money owed to different Immunitybio vendors, workers, and loan providers. Below is the chart of Immunitybio main long-term debt accounts currently reported on its balance sheet. You can use Immunitybio financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Immunitybio's Liquidity
Immunitybio financial leverage refers to using borrowed capital as a funding source to finance Immunitybio ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Immunitybio 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 Immunitybio'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 Immunitybio'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 Immunitybio's total debt and its cash.
A Deeper Perspective
The company reported the previous year's revenue of 240 K. Net Loss for the year was (417.32 M) with profit before overhead, payroll, taxes, and interest of 240 K.
As we enter September, investors are eyeing ImmunityBio (NASDAQ: IBRX) with increased interest. The healthcare and biotechnology firm, with a market capitalization of 876.33M, has a current valuation of 1.56B. Despite having a negative net income of 417.3M, ImmunityBio's potential upside of 15.7 indicates promising future growth. The company has a high price to sales ratio of 4,822X, which might be a concern for some investors.However, the firm's risk-adjusted performance stands at 0.0172, indicating a moderate risk-return trade-off. The company's total operating expenses are 350.9M, with research and development expenses accounting for a significant portion at 248.1M. ImmunityBio's short-term debt is a substantial 434.6M, and the company's current ratio is 0.31X, indicating potential liquidity issues. The company's total liabilities are 812.2M, against total assets of 362.4M, highlighting the firm's high leverage. Despite these challenges, the firm's total cash from financing activities is 233.6M, providing some financial cushion. Investors should carefully consider these factors before deciding to trade ImmunityBio stocks 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 Immunitybio. Please refer to our Terms of Use for any information regarding our disclosure principles.