Mynaric AG ADR has liabilities totaling $88.06 million and a Debt to Equity (D/E) ratio of 0.11. This low ratio might indicate that the company isn't leveraging borrowing to its full potential. We offer an investment recommendation to enhance the latest expert consensus on Mynaric AG ADR. Our recommendation system uses a sophisticated algorithm to assess the company's growth potential, considering all available technical and fundamental data.
Major Takeaways
Considering Mynaric AG's current financial leverage, investors should carefully evaluate their positions, especially with the company's total stockholder equity standing at a loss of
49.3M. With the communication equipment sector's volatility and Mynaric's significant non-current liabilities totaling
104.8M, the potential for amplified returns comes with heightened risk, necessitating a cautious approach for those utilizing leverage.
Mynaric AG financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Mynaric AG, including all of Mynaric AG's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Mynaric AG assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Mynaric AG debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Mynaric Total Debt
Mynaric AG ADR liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Mynaric AG ADR has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Mynaric AG balance sheet include debt obligations and money owed to different Mynaric AG vendors, workers, and loan providers. Below is the chart of Mynaric main long-term debt accounts currently reported on its balance sheet.
You can use Mynaric AG ADR
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Mynaric AG's Liquidity
Mynaric AG
financial leverage refers to using borrowed capital as a funding source to finance Mynaric AG ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Mynaric AG 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 Mynaric AG'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 Mynaric AG'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 Mynaric AG's total debt and its cash.
Breaking it down a bit more
This firm reported the previous year's revenue of 5.39
M. Net Loss for the year was (93.53
M) with loss before overhead, payroll, taxes, and interest of (8.69
M).
Asset Breakdown
78.7 M
Non Current Assets Total
58.2 M
Total Current Assets
49.1 M
Net Tangible Assets
| Total Assets | 136.96 Million |
| Non Current Assets Total | 78.74 Million |
| Non Currrent Assets Other | 1.26 Million |
| Other Assets | 1.09 |
| Total Current Assets | 58.22 Million |
| Intangible Assets | 7.52 Million |
| Other Current Assets | 7.16 Million |
| Net Tangible Assets | 49.12 Million |
In the words of Warren Buffett, risk comes from not knowing what you're doing.
Investors in Mynaric AG ADR (MYNA) may need to reassess their positions, especially given the company's challenging financial landscape. With a current ratio of 4.52x, Mynaric appears capable of meeting its short-term obligations, yet the staggering operating income loss of 77.7 million suggests underlying operational inefficiencies. Furthermore, the probability of bankruptcy at 96% is a stark reminder of the inherent risks involved. While the target price of $3.29 offers potential upside, investors should weigh this against the company's high leverage and financial instability before making any decisions..
Our take on today Mynaric AG rise
Mynaric AG's stock is making waves today with a significant rise, even though its value at risk (VaR) has dropped to -9.73. Normally, this figure points to potential risks, but the stock's climb suggests investors might be optimistic about the company's future or recent positive news. This highlights that while VaR is useful for gauging risk, other factors like market sentiment can influence stock prices in surprising ways. Mynaric AG ADR is experiencing higher-than-average volatility, which can help investors decide when to buy or sell. During market downturns, increased volatility can affect Mynaric AG's stock price, causing stress for investors as values drop.
This often leads them to adjust their portfolios by purchasing different assets as prices decline.As we look towards November, Mynaric AG presents an intriguing opportunity for investors. The stock is currently buoyed by a strong buy consensus from analysts, suggesting confidence in its potential. With target prices ranging from 10.61 to 12.94, there's a promising upside from its current levels. The company's valuation metrics, such as a real value of 4.06, indicate that it might be undervalued compared to its market potential. For those considering a stake in the satellite communications sector, Mynaric AG could be a compelling choice, especially with its fiscal year-end approaching in December, which might bring further developments and financial insights..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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 Nico Santiago do not own shares of Mynaric AG ADR. Please refer to our
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