Liabilities Breakdown
371.6 M
Current Liabilities
189.4 M
Long-Term Liabilities
| Total Liabilities | 588.46 Million | |
| Current Liabilities | 371.59 Million | |
| Long-Term Liabilities | 189.38 Million | |
| Tax Liabilities | 18.07 Million |
How much will Symbotic owe in September?
 | By Nico Santiago | Macroaxis Story |
The company in question, Symbotic, maintains a current ratio of 1.14. This indicates a potential difficulty in meeting its financial obligations when they become due. Debt can serve as a temporary aid for Symbotic, until the point where it struggles to pay it off, either through raising new capital or generating free cash flow. Consequently, if the company fails to meet its legal debt repayment obligations, Symbotic's shareholders could potentially lose their entire investment. However, a more common scenario involves companies like Symbotic issuing additional shares at discount prices, which results in the dilution of existing shareholders' stakes. In this context, debt can be an excellent tool for Symbotic, enabling the company to invest in high-return growth opportunities. When evaluating Symbotic's use of debt, it's essential to consider it in conjunction with cash and equity.
Widened examination
Symbotic, a leading player in the Specialty Industrial Machinery industry, has been demonstrating a remarkable performance in the market, outpacing many of its competitors. Despite the company's operating income registering a loss of 140.4M, the firm's robust end period cash flow of 353.5M and other stockholder equity of a whopping 1.3B underscore its financial resilience. This strong financial position provides Symbotic with the leverage to continue investing in capital expenditures, which stood at 17.9M, to further enhance its competitive edge. However, potential investors should also consider the company's downside variance of 44.11, which indicates a certain level of risk associated with the stock. Nonetheless, the company's recent price change of 1.37 and a price percent change of 2.38, coupled with its market risk adjusted performance of 0.7049, suggest that Symbotic stock could be a profitable investment amidst the current subdued market conditions.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 Vlad Skutelnik
Symbotic, a player in the Specialty Industrial Machinery industry, has been outperforming in the NASDAQ exchange, despite the overall subdued market conditions. The company's robust gains can be attributed to its strong financial position, with a net working capital of $82.4M and cash and short-term investments amounting to $353.5M. The company has also seen a significant inflow from the issuance of capital stock, which stands at $384.7M. Despite a loss of $139.1M from continuing operations and a total equity deficit of $1.3B, Symbotic's financial leverage is underpinned by its solid assets base, including $48.7M in property, plant, and equipment, and $6.5M in net tangible assets. Analysts remain optimistic about the stock, with 7 strong buys and an estimated target price of $52, which is higher than the current real value of $46.34. The upcoming fiscal quarter is projected to conclude on September 30, 2023. The stock is currently experiencing above-average trading activity. While many baby boomers remain indifferent towards the machinery sector, it's worth revisiting Symbotic as a distinctive investment option for millennials. We will examine whether the company can sustain a manageable level of debt while minimizing operational losses.Symbotic financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Symbotic, including all of Symbotic'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 Symbotic assets, the company is considered highly leveraged. Understanding the composition and structure of overall Symbotic 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 Symbotic Total Liabilities
Symbotic liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Symbotic 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 Symbotic balance sheet include debt obligations and money owed to different Symbotic vendors, workers, and loan providers. Below is the chart of Symbotic short long-term liabilities accounts currently reported on its balance sheet. You can use Symbotic financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Symbotic's Liquidity
Symbotic financial leverage refers to using borrowed capital as a funding source to finance Symbotic ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Symbotic 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 Symbotic'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 Symbotic'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 Symbotic's total debt and its cash.
Details
The company reported the last year's revenue of 593.31 M. Reported Net Loss for the year was (139.09 M) with profit before taxes, overhead, and interest of 99.65 M.
Symbotic, a prominent player in the Specialty Industrial Machinery industry, has been outperforming in the NASDAQ exchange, registering robust gains amidst subdued market conditions. The company's Beta of 1.43 indicates a higher volatility compared to the market, but its Risk Adjusted Performance of 0.1241 and Market Risk Adjusted Performance of 0.7049 suggest a decent return considering the risk. Despite an operating income loss of $140.4M and a net income loss from continuing operations of $139.1M, Symbotic managed to maintain a healthy cash flow.The company ended the period with a cash flow of $353.5M, a significant increase from previous periods, with a change in cash of $196.8M. Symbotic's total equity in common stock stands at $56K, with the number of shares shorted being 5.65M, indicating a short ratio of 5.22X. The company's current valuation is $2.47B, with a high price to book ratio of 97.65X, suggesting that investors are willing to pay a high price for the company's assets. Despite the company's performance, it's important to note the high probability of bankruptcy at 96.00%. Investors should consider this risk alongside the company's performance metrics when making investment decisions. .
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