Asset Breakdown
60.5 M
Assets Non Current
56.1 M
Goodwill
107.3 M
Current Assets
| Total Assets | 153.82 Million | |
| Current Assets | 107.34 Million | |
| Assets Non Current | 60.52 Million | |
| Goodwill | 56.1 Million | |
| Tax Assets | 1.67 Million |
Will latest American Superconductor (USA Stocks:AMSC) debt levels change next week?
 | By Nico Santiago | Macroaxis Story |
The company currently holds 3.08 million in liabilities, with a Debt to Equity (D/E) ratio of 0.04. This may suggest that American Superconductor is not leveraging borrowing sufficiently. Our trading advice tool can cross-verify the current analyst consensus on American Superconductor and analyze the company's potential to grow in the present economic cycle.
Rigorous look on American
American Superconductor (AMSC) presents an interesting case for investors looking at leverage opportunities. The company's long-term debt stands at a modest 15K, which is relatively low compared to its Selling General Administrative expenses of 28.7M. This low debt level could potentially allow the company to take on more debt to fund growth initiatives, providing a leverage opportunity for investors. However, it's crucial to note that the company has been operating at a loss, with an income before tax reported as a loss of 34.8M. This indicates a potential risk, as the company would need to improve its profitability to service any additional debt effectively. Therefore, while the low debt levels present a leverage opportunity, investors must weigh this against the company's current financial performance and future profitability prospects.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 Raphi Shpitalnik
As an industrials sector player listed on NASDAQ, American Superconductor (AMSC) is currently navigating a complex financial landscape. The company's end period cash flow stands at a healthy $25.7M, with total current assets amounting to $106.2M. However, the firm's retained earnings reflect a significant loss of $1.1B, indicating a history of financial difficulties. The company's operating income also shows a loss of $31.9M, and an income before tax loss of $34.8M. These figures highlight the company's struggle to generate profit, despite a gross profit of $8.5M. In terms of liabilities, AMSC's other current liabilities and accounts payable stand at $25.7M and $13.9M respectively, while the short and long term debt is relatively low at $75K. The company's net invested capital is at $81.9M, indicating that the firm has significant funds invested in its operations. The upcoming shifts in debt levels could potentially impact AMSC's financial standing. The company's net interest income is currently at $252K, with an interest expense of $1.8M. Any significant increase in debt levels could exacerbate the interest expense, further straining the company's financial health. However, this situation could also present an investment opportunity. The analyst's highest estimated target price for AMSC's stock is $13, while the possible downside price is $3.94. The valuation real value stands at $10.63, with a valuation hype value of $12.55. Given the company's current financial standing and the potential impact of the upcoming shifts in debt levels, investors need to carefully consider the potential risks and rewards. The company's financial health will be crucial in determining its ability to manage increased debt levels and generate returns for investors. As of August 2, 2023, this is the financial snapshot of American Superconductor. The forthcoming financial report for American Superconductor is anticipated on November 7, 2023. The stock has been experiencing above-average trading activity. Based on the data from the last few years, American Superconductor's Invested Capital is projected to decrease significantly. The Invested Capital for the previous year stood at 16.05 million. The current year's average Invested Capital is expected to increase to approximately 16.9 million, while the Net Income Per Employee is forecasted to decline to -115.3K. Given the enthusiasm around the electrical equipment sector, it's reasonable to consider American Superconductor as a unique investment alternative.American Superconductor financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of American Superconductor, including all of American Superconductor'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 American Superconductor assets, the company is considered highly leveraged. Understanding the composition and structure of overall American Superconductor 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 American Total Debt
American Superconductor liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. American Superconductor 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 American Superconductor balance sheet include debt obligations and money owed to different American Superconductor vendors, workers, and loan providers. Below is the chart of American main long-term debt accounts currently reported on its balance sheet. You can use American Superconductor financial leverage analysis tool to get a better grip on understanding its financial positionHow important is American Superconductor's Liquidity
American Superconductor financial leverage refers to using borrowed capital as a funding source to finance American Superconductor ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. American Superconductor 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 American Superconductor'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 American Superconductor'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 American Superconductor's total debt and its cash.
Another Deeper Perspective
The latest price surge of American Superconductor could raise concerns from shareholders as the firm is trading at a share price of 11.46 on 20,361,664 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 90 days investing horizon is currently 10.23. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the American Superconductor partners.
American Superconductor (AMSC), a leader in the Machinery, Tools, Heavy Vehicles, Trains & Ships industry, is experiencing significant shifts in its financial position, with potential impacts on its stock performance. Notably, AMSC's total debt stands at a modest $3.08M, with short-term debt accounting for $883K of this figure. This is offset by a substantial end period cash flow of $25.7M, indicating the company's ability to meet its obligations. Moreover, AMSC's net debt stands at -$20.3M, reflecting a net cash position. This is a strong indicator of financial health, as the company has more cash than debt.This is further reinforced by the company's total current assets of $106.2M, significantly outweighing its total current liabilities of $84.1M. However, the company did report a loss before tax of $34.8M, indicating operational challenges. Additionally, its total operating expenses were $40.4M, contributing to an EBIT loss of $31.9M. This may impact the company's ability to generate positive returns in the short term. In terms of market performance, AMSC has a beta of 1.49, indicating higher volatility compared to the market. This, coupled with a downside deviation of 6.83, suggests potential risk for investors. However, with a potential upside of 14.29 and a target price of $9.67, the company's stock could present an investment opportunity for risk-tolerant investors. It's crucial to keep an eye on the company's debt levels and operational performance in the upcoming period. .
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