Sector 10 Current Financial Leverage
| SECI Stock | USD 0.0001 0.00 0.00% |
Sector 10 holds a debt-to-equity ratio of 0.0. The Sector 10's current Cash Flow To Debt Ratio is estimated to increase to 0.01, while Short and Long Term Debt is projected to decrease to under 140.2 K. Sector 10's financial risk is the risk to Sector 10 stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Given that Sector 10's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Sector 10 is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Sector 10 to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Sector 10 is said to be less leveraged. If creditors hold a majority of Sector 10's assets, the Company is said to be highly leveraged.
The Sector 10's current Cash Flow To Debt Ratio is estimated to increase to 0.01, while Short and Long Term Debt is projected to decrease to under 140.2 K. Sector |
Sector 10 Financial Leverage Rating
Sector 10 bond ratings play a critical role in determining how much Sector 10 have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Sector 10's borrowing costs.| Piotroski F Score | 6 Healthy |
| Beneish M Score | -153.63 Unlikely Manipulator |
Sector 10 Total Current Liabilities Over Time
Sector 10 Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Sector 10's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Sector 10, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Sector 10 debt ratio should be compared their industry average or other competing firms.Understaning Sector 10 Use of Financial Leverage
Sector 10 financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Sector 10's total debt position, including all of 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 Sector 10 assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sector 10 debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Sector 10'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 Sector 10'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).
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 0.00 | 0.00 | |
| Short and Long Term Debt | 147.6 K | 140.2 K | |
| Short Term Debt | 0.00 | 0.00 | |
| Long Term Debt Total | 0.00 | 0.00 | |
| Net Debt | 146.7 K | 139.4 K | |
| Net Debt To EBITDA | (4.70) | (4.47) | |
| Debt To Equity | (0.01) | (0.02) | |
| Interest Debt Per Share | 0.67 | 0.63 | |
| Debt To Assets | 32.51 | 17.52 | |
| Long Term Debt To Capitalization | (0.09) | (0.1) | |
| Total Debt To Capitalization | (0.02) | (0.02) | |
| Debt Equity Ratio | (0.01) | (0.02) | |
| Debt Ratio | 32.51 | 17.52 | |
| Cash Flow To Debt Ratio | 0.01 | 0.01 |
Currently Active Assets on Macroaxis
When determining whether Sector 10 offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sector 10's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sector 10 Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sector 10 Stock:Check out the analysis of Sector 10 Fundamentals Over Time. For more detail on how to invest in Sector Stock please use our How to Invest in Sector 10 guide.Note that the Sector 10 information on this page should be used as a complementary analysis to other Sector 10's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Complementary Tools for Sector Stock analysis
When running Sector 10's price analysis, check to measure Sector 10's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sector 10 is operating at the current time. Most of Sector 10's value examination focuses on studying past and present price action to predict the probability of Sector 10's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sector 10's price. Additionally, you may evaluate how the addition of Sector 10 to your portfolios can decrease your overall portfolio volatility.
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |
Is Sector 10's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sector 10. If investors know Sector will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sector 10 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.17) |
The market value of Sector 10 is measured differently than its book value, which is the value of Sector that is recorded on the company's balance sheet. Investors also form their own opinion of Sector 10's value that differs from its market value or its book value, called intrinsic value, which is Sector 10's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sector 10's market value can be influenced by many factors that don't directly affect Sector 10's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sector 10's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sector 10 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sector 10's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.