Liabilities Breakdown
11.8 M
Current Liabilities
7.5 M
Long-Term Liabilities
| Total Liabilities | 19.36 Million | |
| Current Liabilities | 11.83 Million | |
| Long-Term Liabilities | 7.53 Million |
Will Plus Therapeutics (USA Stocks:PSTV) be in financial trouble before September?
 | By Rifka Kats | Macroaxis Story |
Plus Therapeutics currently holds $5.64 million in liabilities with a Debt to Equity (D/E) ratio of 0.53, which is roughly average when compared to similar companies. The company has a current ratio of 2.75, suggesting that it has sufficient liquidity to meet its financial obligations as they come due. While debt can be a useful tool for Plus Therapeutics, it can also present challenges if the company struggles to repay it, either through raising new capital or generating free cash flow. If Plus Therapeutics fails to meet its legal debt obligations, shareholders could potentially lose their entire investment. However, a more common scenario is for companies like Plus Therapeutics to issue additional shares at discounted prices, which dilutes the holdings of existing shareholders. Despite this, debt can be an excellent tool for Plus Therapeutics to invest in growth opportunities that yield high rates of return. When evaluating Plus Therapeutics' use of debt, it's crucial to consider it in conjunction with the company's cash and equity positions.
Continued study
Investing in Plus Therapeutics (USA:PSTV), a Biotechnology industry player, presents potential opportunities amidst the September market fluctuations. The company's financials reveal a long-term debt of 3.8M, which is relatively low compared to its total current assets of 21.8M. This indicates that the company has sufficient assets to cover its debt, providing a favorable leverage position for potential investors. However, it's important to note that the company has been operating at a loss, with a free cash flow of 13.5M and total cash from operating activities at 13M. Despite these challenges, the company's other stockholder equity stands strong at 473.6M, indicating a robust financial backbone. Given these factors, Plus Therapeutics presents a potentially rewarding investment opportunity for those willing to navigate the risks associated with market fluctuations.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 navigate through the September market fluctuations, Plus Therapeutics, Inc. (USA:PSTV), a clinical-stage pharmaceutical company, emerges as a potential investment opportunity. The company, which operates in the healthcare and biotechnology sector, is dedicated to the development, manufacture, and commercialization of treatments for patients with cancer and other diseases. Despite a net income loss of $20.3M and retained earnings loss of $467.2M, the company maintains a solid financial footing with a total stockholder equity of $6.4M and a begin period cash flow of $18.4M. The company's total revenue stands at $224K, and it has successfully managed to secure total cash from financing activities amounting to $13.5M. With two strong buy recommendations from analysts, Plus Therapeutics' stock may offer a promising investment opportunity amidst the current market volatility. Plus Therapeutics is set to announce its earnings today, with the subsequent financial report anticipated on October 19, 2023. The company's Price to Book Value has remained relatively stable compared to the previous year, registering a value of 1.65 in 2022. The Price to Sales Ratio is projected to rise to 46.11 in 2023, while Earnings Before Tax are expected to decrease to a negative $21.9 million in the same year. As many millennials are steering clear of the biotechnology sector, it seems prudent to pay closer attention to Plus Therapeutics and attempt to comprehend its current market trends.Plus Therapeutics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Plus Therapeutics, including all of Plus Therapeutics'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 Plus Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Plus Therapeutics 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 Plus Therapeutics on a daily basis if you are holding a position in it. Plus Therapeutics 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 Plus Therapeutics stock to be traded above the $1 level to remain listed. If Plus Therapeutics 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 Plus Therapeutics's Liquidity
Plus Therapeutics financial leverage refers to using borrowed capital as a funding source to finance Plus Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Plus Therapeutics 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 Plus Therapeutics' 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 Plus Therapeutics' 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 Plus Therapeutics's total debt and its cash.
Detailed Perspective On Plus Therapeutics
The entity reported the previous year's revenue of 224 K. Net Loss for the year was (20.27 M) with loss before overhead, payroll, taxes, and interest of (9.47 M).
Plus Therapeutics (USA:PSTV), a biotechnology company in the healthcare sector, presents potential investment opportunities amidst the September market fluctuations. The company's current ratio stands at 2.81X, indicating a healthy short-term liquidity position. Plus Therapeutics has a net asset value of $23.87M, with total stockholder equity amounting to $6.4M. However, the company's financial health is not without concerns.It reported an operating income loss of $19.7M and a net income from continuing operations loss of $20.3M. The company's risk-adjusted performance is -0.06, and it has a high probability of bankruptcy at 96.00%. Despite these challenges, Plus Therapeutics has a beta of 0.34, suggesting lower volatility compared to the market. The company's market capitalization is $6.41M, and it trades at a high price-to-sales ratio of 143.61X. In conclusion, while Plus Therapeutics presents potential investment opportunities, investors should be aware of the company's financial health and high bankruptcy risk. As always, a thorough analysis and understanding of the company's financials and market position are crucial before making any investment decisions. .
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 Rifka Kats do not own shares of Plus Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.