What is June outlook for Tarena (NASDAQ:TEDU)?
 | By Vlad Skutelnik | Macroaxis Story |
The stock is currently undergoing an active upward rally. As many millenniums are trying to avoid consumer defensive space, it makes sense to review Tarena Intl ADR a little further and try to understand its current market patterns. Here we also measure the ability of Tarena Intl to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
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Reviewed by Michael Smolkin
The company currently holds 616.04 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest Tarena Intl is not taking enough advantage from borrowing. Tarena Intl ADR has a current ratio of 0.2, indicating that it has a negative working capital and may not be able to pay financial obligations when due. About 13.0% of the company outstanding shares are owned by corporate insiders. Tarena Intl ADR has price-to-book ratio of 1.05. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity recorded a loss per share of 2.17. The firm next dividend is scheduled to be issued on the 4th of April 2018. Tarena Intl financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Tarena Intl, including all of Tarena Intl'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 Tarena Intl assets, the company is considered highly leveraged. Understanding the composition and structure of overall Tarena Intl 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.
How important is Tarena Intl's Liquidity
Tarena Intl financial leverage refers to using borrowed capital as a funding source to finance Tarena Intl Adr ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tarena Intl 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 Tarena Intl'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 Tarena Intl'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 Tarena Intl's total debt and its cash.
Is Tarena Intl valued wisely by the market?
The entity reported the previous year's revenue of 1.9 B. Net Loss for the year was (766.64 M) with profit before overhead, payroll, taxes, and interest of 831.04 M.
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