EVe Mobility Acquisition 55336VAK6 Bond

EVE Stock  USD 11.27  0.00  0.00%   
EVe Mobility Acquisition has over 9.85 Million in debt which may indicate that it relies heavily on debt financing. As of December 30, 2024, Net Debt is expected to decline to about (133.9 K). Short Term Debt is expected to grow at the current pace this year. EVe Mobility's financial risk is the risk to EVe Mobility stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

EVe Mobility's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. EVe Mobility's 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 EVe Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect EVe Mobility's stakeholders.
For most companies, including EVe Mobility, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for EVe Mobility Acquisition, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, EVe Mobility's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
2.9453
Book Value
(0.68)
Return On Assets
(0.01)
Return On Equity
2.171
The current year's Change To Liabilities is expected to grow to about 69.7 K, whereas Total Current Liabilities is forecasted to decline to about 513.2 K.
  
Check out the analysis of EVe Mobility Fundamentals Over Time.
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Given the importance of EVe Mobility's capital structure, the first step in the capital decision process is for the management of EVe Mobility 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 EVe Mobility Acquisition to issue bonds at a reasonable cost.
Popular NameEVe Mobility MPLX LP 4125
SpecializationFinancial Services
Equity ISIN CodeKYG3218G1091
Bond Issue ISIN CodeUS55336VAK61
S&P Rating
Others
Maturity Date1st of March 2027
Issuance Date10th of February 2017
Coupon4.125 %
View All EVe Mobility Outstanding Bonds

EVe Mobility Acquisition Outstanding Bond Obligations

Understaning EVe Mobility Use of Financial Leverage

EVe Mobility's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures EVe Mobility's total debt position, including all outstanding debt obligations, and compares it with EVe Mobility's equity. Financial leverage can amplify the potential profits to EVe Mobility's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if EVe Mobility is unable to cover its debt costs.
Last ReportedProjected for Next Year
Net Debt-127.5 K-133.9 K
Net Debt To EBITDA(0.05)(0.05)
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When determining whether EVe Mobility Acquisition is a strong investment it is important to analyze EVe Mobility's 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 EVe Mobility's future performance. For an informed investment choice regarding EVe Stock, refer to the following important reports:
Check out the analysis of EVe Mobility Fundamentals Over Time.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Asset Management & Custody Banks 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 EVe Mobility. If investors know EVe 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 EVe Mobility 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
0.07
Earnings Share
0.25
Return On Assets
(0.01)
Return On Equity
2.171
The market value of EVe Mobility Acquisition is measured differently than its book value, which is the value of EVe that is recorded on the company's balance sheet. Investors also form their own opinion of EVe Mobility's value that differs from its market value or its book value, called intrinsic value, which is EVe Mobility's 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 EVe Mobility's market value can be influenced by many factors that don't directly affect EVe Mobility's 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 EVe Mobility's value and its price as these two are different measures arrived at by different means. Investors typically determine if EVe Mobility is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EVe Mobility's 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.
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.