Akoya Biosciences Volcan Bond
AKYA Stock | USD 2.39 0.07 2.85% |
Akoya Biosciences holds a debt-to-equity ratio of 0.615. At present, Akoya Biosciences' Net Debt is projected to decrease significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 1.54, whereas Short and Long Term Debt Total is forecasted to decline to about 55.9 M. With a high degree of financial leverage come high-interest payments, which usually reduce Akoya Biosciences' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Akoya Biosciences' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Akoya Biosciences' cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Akoya Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Akoya Biosciences' stakeholders.
For most companies, including Akoya Biosciences, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Akoya Biosciences, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Akoya Biosciences' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 8.9434 | Book Value 1.095 | Operating Margin (0.47) | Profit Margin (0.65) | Return On Assets (0.18) |
Akoya |
Given the importance of Akoya Biosciences' capital structure, the first step in the capital decision process is for the management of Akoya Biosciences to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Akoya Biosciences to issue bonds at a reasonable cost.
Popular Name | Akoya Biosciences Volcan Compania Minera |
Specialization | Health Care Equipment & Services |
Equity ISIN Code | US00974H1041 |
Bond Issue ISIN Code | USP98047AC08 |
S&P Rating | Others |
Maturity Date | 11th of February 2026 |
Issuance Date | 11th of February 2021 |
Coupon | 4.375 % |
Akoya Biosciences Outstanding Bond Obligations
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Understaning Akoya Biosciences Use of Financial Leverage
Akoya Biosciences' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Akoya Biosciences' total debt position, including all outstanding debt obligations, and compares it with Akoya Biosciences' equity. Financial leverage can amplify the potential profits to Akoya Biosciences' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Akoya Biosciences is unable to cover its debt costs.
Last Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 85.7 M | 55.9 M | |
Net Debt | 2.6 M | 2.7 M | |
Long Term Debt | 75.3 M | 50.4 M | |
Short Term Debt | 6.9 M | 3.5 M | |
Short and Long Term Debt | 928.8 K | 825.6 K | |
Long Term Debt Total | 72.8 M | 52.7 M | |
Net Debt To EBITDA | (0.06) | (0.06) | |
Debt To Equity | 1.46 | 1.54 | |
Interest Debt Per Share | 1.97 | 1.05 | |
Debt To Assets | 0.44 | 0.27 | |
Long Term Debt To Capitalization | 0.58 | 0.61 | |
Total Debt To Capitalization | 0.59 | 0.62 | |
Debt Equity Ratio | 1.46 | 1.54 | |
Debt Ratio | 0.44 | 0.27 | |
Cash Flow To Debt Ratio | (0.65) | (0.68) |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Akoya Biosciences offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Akoya Biosciences' 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 Akoya Biosciences Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Akoya Biosciences Stock:Check out the analysis of Akoya Biosciences Fundamentals Over Time. For information on how to trade Akoya Stock refer to our How to Trade Akoya Stock guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Health Care Equipment & Supplies space 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 Akoya Biosciences. If investors know Akoya 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 Akoya Biosciences listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.16) | Revenue Per Share 1.889 | Quarterly Revenue Growth (0.01) | Return On Assets (0.18) | Return On Equity (1.28) |
The market value of Akoya Biosciences is measured differently than its book value, which is the value of Akoya that is recorded on the company's balance sheet. Investors also form their own opinion of Akoya Biosciences' value that differs from its market value or its book value, called intrinsic value, which is Akoya Biosciences' 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 Akoya Biosciences' market value can be influenced by many factors that don't directly affect Akoya Biosciences' 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 Akoya Biosciences' value and its price as these two are different measures arrived at by different means. Investors typically determine if Akoya Biosciences is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akoya Biosciences' 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.