The company has 205
K in debt with debt to equity (D/E) ratio of 0.21, which may show that Polymet Mining is not taking advantage of profits from borrowing. Polymet Mining Corp has a current ratio of 0.12, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Polymet Mining until it has trouble settling it off, either with new capital or with free cash flow. So, Polymet Mining'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 Polymet Mining Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Polymet to invest in growth at high rates of return. When we think about Polymet Mining's use of debt, we should always consider it together with cash and equity.
How important is Polymet Mining's Liquidity
Polymet Mining
financial leverage refers to using borrowed capital as a funding source to finance Polymet Mining Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Polymet Mining 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 Polymet Mining'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 Polymet Mining'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 Polymet Mining's total debt and its cash.
An Additional Perspective On Polymet Mining Corp
Reported Net Loss for the year was (34.09
M) with loss before taxes, overhead, and interest of (3.97
M).
Liabilities Breakdown
85.8 M
Current Liabilities
70.8 M
Long-Term Liabilities
| Total Liabilities | 170.38 Million |
| Current Liabilities | 85.83 Million |
| Long-Term Liabilities | 70.85 Million |
| Tax Liabilities | 440,211 |
Will Polymet decline impact its fundamentals?
Recent value at risk is at -6.22.
Polymet Mining Corp exhibits very low volatility with skewness of 0.16 and kurtosis of 1.29. However, we advise investors to further study Polymet Mining Corp technical indicators to ensure that all market info is available and is reliable. Understanding different
market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Polymet Mining's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact
Polymet Mining's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Takeaway
Although some other companies in the other industrial metals & mining industry are either recovering or due for a correction, Polymet Mining may not be performing as strong as the other in terms of long-term growth potentials. While some insiders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Polymet Mining.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Polymet Mining Corp. Please refer to our
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