Contineum Therapeutics Debt

CTNM Stock   14.30  0.14  0.97%   
At this time, Contineum Therapeutics' Short Term Debt is very stable compared to the past year. As of the 16th of February 2026, Debt To Equity is likely to grow to 0.04, though Net Debt is likely to grow to (17.1 M). Contineum Therapeutics' financial risk is the risk to Contineum Therapeutics stockholders that is caused by an increase in debt.
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
0.0265
Current Value
0.0251
Quarterly Volatility
0.34437047
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
As of the 16th of February 2026, Total Current Liabilities is likely to drop to about 7.3 M. In addition to that, Liabilities And Stockholders Equity is likely to drop to about 127.7 M
Check out the analysis of Contineum Therapeutics Financial Statements.

Contineum Therapeutics Bond Ratings

Contineum Therapeutics Class financial ratings play a critical role in determining how much Contineum Therapeutics 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 Contineum Therapeutics' borrowing costs.
Piotroski F Score
2
FrailView
Beneish M Score
(6.22)
Unlikely ManipulatorView

Contineum Therapeutics Total Assets Over Time

Contineum Therapeutics Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Contineum Therapeutics 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.

Contineum Therapeutics Debt Ratio

    
  2.51   
It appears that most of the Contineum Therapeutics' assets are financed through equity. 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 Contineum Therapeutics' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Contineum Therapeutics, which in turn will lower the firm's financial flexibility.

Contineum Therapeutics Corporate Bonds Issued

Contineum Short Long Term Debt Total

Short Long Term Debt Total

6.84 Million

At this time, Contineum Therapeutics' Short and Long Term Debt Total is very stable compared to the past year.

Understaning Contineum Therapeutics Use of Financial Leverage

Leverage ratios show Contineum Therapeutics' total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Contineum Therapeutics' financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
Last ReportedProjected for Next Year
Short and Long Term Debt Total7.2 M6.8 M
Net Debt-18 M-17.1 M
Long Term Debt3.3 M2.9 M
Short and Long Term Debt4.5 M2.9 M
Short Term Debt1.3 M1.6 M
Net Debt To EBITDA 0.34  0.32 
Debt To Equity 0.04  0.04 
Interest Debt Per Share 0.29  0.28 
Debt To Assets 0.03  0.03 
Long Term Debt To Capitalization 1.39  1.46 
Total Debt To Capitalization 0.03  0.03 
Debt Equity Ratio 0.04  0.04 
Debt Ratio 0.03  0.03 
Cash Flow To Debt Ratio(4.72)(4.96)
Please read more on our technical analysis page.

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When determining whether Contineum Therapeutics is a strong investment it is important to analyze Contineum Therapeutics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Contineum Therapeutics' future performance. For an informed investment choice regarding Contineum Stock, refer to the following important reports:
Check out the analysis of Contineum Therapeutics Financial Statements.
You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Will Pharmaceuticals sector continue expanding? Could Contineum diversify its offerings? Factors like these will boost the valuation of Contineum Therapeutics. Projected growth potential of Contineum fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Contineum Therapeutics data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Earnings Share
(2.25)
Return On Assets
(0.21)
Return On Equity
(0.30)
Understanding Contineum Therapeutics requires distinguishing between market price and book value, where the latter reflects Contineum's accounting equity. The concept of intrinsic value - what Contineum Therapeutics' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Contineum Therapeutics' price substantially above or below its fundamental value.
It's important to distinguish between Contineum Therapeutics' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Contineum Therapeutics should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Contineum Therapeutics' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.

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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.