Celsius Holdings Debt
| CELH Stock | USD 27.36 0.61 2.28% |
Celsius Holdings holds a debt-to-equity ratio of 0.005. As of now, Celsius Holdings' Short Term Debt is increasing as compared to previous years. The Celsius Holdings' current Cash Flow To Debt Ratio is estimated to increase to 139.85, while Short and Long Term Debt Total is projected to decrease to under 2.1 M. With a high degree of financial leverage come high-interest payments, which usually reduce Celsius Holdings' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Celsius Holdings' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Celsius Holdings' 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 Celsius Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Celsius Holdings' stakeholders.
For most companies, including Celsius Holdings, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Celsius Holdings, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Celsius Holdings' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 15.1796 | Book Value 1.803 | Operating Margin (0.01) | Profit Margin 0.1562 | Return On Assets 0.0897 |
Celsius |
Celsius Holdings Bond Ratings
Celsius Holdings financial ratings play a critical role in determining how much Celsius Holdings 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 Celsius Holdings' borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (1.90) | Possible Manipulator | View |
Celsius Holdings Debt to Cash Allocation
As Celsius Holdings follows its natural business cycle, the capital allocation decisions will not magically go away. Celsius Holdings' decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Celsius Holdings currently holds 2.19 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest the company is not taking enough advantage from borrowing. Celsius Holdings has a current ratio of 2.81, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Celsius Holdings' use of debt, we should always consider it together with its cash and equity.Celsius Holdings Total Assets Over Time
Celsius Holdings Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Celsius Holdings uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Celsius Holdings Debt Ratio | 0.0653 |
Celsius Holdings Corporate Bonds Issued
Most Celsius bonds can be classified according to their maturity, which is the date when Celsius Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Celsius Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Celsius Holdings Use of Financial Leverage
Understanding the composition and structure of Celsius Holdings' debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Celsius Holdings' 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 | ||
| Short and Long Term Debt Total | 2.2 M | 2.1 M | |
| Net Debt | -753.8 M | -716.1 M | |
| Short Term Debt | 1 M | 1.4 M | |
| Long Term Debt | 9.2 M | 5.8 M | |
| Short and Long Term Debt | 7.8 M | 5.1 M | |
| Long Term Debt Total | 119.3 K | 113.3 K | |
| Net Debt To EBITDA | (2.80) | (2.66) | |
| Interest Debt Per Share | 0.03 | 0.03 | |
| Long Term Debt To Capitalization | 0.36 | 0.34 | |
| Cash Flow To Debt Ratio | 133.19 | 139.85 |
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When determining whether Celsius Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Celsius Holdings' 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 Celsius Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Celsius Holdings Stock:Check out the analysis of Celsius Holdings Fundamentals Over Time. For more detail on how to invest in Celsius Stock please use our How to Invest in Celsius Holdings guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Soft Drinks & Non-alcoholic Beverages 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 Celsius Holdings. If investors know Celsius 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 Celsius Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.629 | Earnings Share 0.72 | Revenue Per Share 5.888 | Quarterly Revenue Growth (0.31) | Return On Assets 0.0897 |
The market value of Celsius Holdings is measured differently than its book value, which is the value of Celsius that is recorded on the company's balance sheet. Investors also form their own opinion of Celsius Holdings' value that differs from its market value or its book value, called intrinsic value, which is Celsius Holdings' 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 Celsius Holdings' market value can be influenced by many factors that don't directly affect Celsius Holdings' 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 Celsius Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Celsius Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Celsius Holdings' 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.