The company has accumulated 1.5B in total debt with debt to equity ratio (D/E) of 35.8 indicating Kroton Educacional may have difficulties to generate enough cash to satisfy its financial obligations. Kroton Educacional dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.04 per share. Lets now check Kroton Educacional Current Liabilities. In accordance with recently published financial statements Kroton Educacional S A has Current Liabilities of 345.67M. This is much higher than that of the Consumer Defensive sector, and significantly higher than that of
Education & Training Services industry, The Current Liabilities for all stocks is notably lower than the firm.
How important is Kroton Educacional's Liquidity
Kroton Educacional
financial leverage refers to using borrowed capital as a funding source to finance Kroton Educacional SA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kroton Educacional 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 Kroton Educacional'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 Kroton Educacional'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 Kroton Educacional's total debt and its cash.
Detailed Perspective On Kroton Educacional
The modest gains experienced by current holders of Kroton Educacional may raise some interest from investors. The Stock closed today at a share price of
2.81 on
11051.000 in trading volume. The company management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in
February. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 3.714. The above-average volatility is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Kroton Educacional partners. Kroton Educacional preserves 1.5b of total debt. Kroton Educacional is selling for 2.86. This is 2.51 percent up. Today highest was 2.88.
On the whole, our analysis show that Kroton Educacional Slowly supersedes market. The company is
overvalued and projects chance of financial distress
below average for the next 2 years. Our concluding buy/sell advice on the company is
Strong Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Kroton Educacional SA. Please refer to our
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