Advent Technologies Current Debt
| ADN Stock | USD 3.52 0.16 4.76% |
Advent Technologies holds a debt-to-equity ratio of 0.001. At this time, Advent Technologies' Debt Equity Ratio is very stable compared to the past year. As of the 10th of June 2024, Debt Ratio is likely to grow to 0.13, while Net Debt is likely to drop (19.6 M). With a high degree of financial leverage come high-interest payments, which usually reduce Advent Technologies' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Advent Technologies' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Advent Technologies' 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 Advent Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Advent Technologies' stakeholders.
For most companies, including Advent Technologies, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Advent Technologies Holdings, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Advent Technologies' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 0.3914 | Book Value 15.738 | Operating Margin (9.22) | Return On Assets (0.33) | Return On Equity (1.33) |
Advent |
Advent Technologies Financial Rating
Advent Technologies Holdings financial ratings play a critical role in determining how much Advent Technologies 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 Advent Technologies' borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (3.00) | Unlikely Manipulator | View |
Advent Technologies Debt to Cash Allocation
As Advent Technologies Holdings follows its natural business cycle, the capital allocation decisions will not magically go away. Advent Technologies' 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.
Advent Technologies Holdings has 12.08 M in debt with debt to equity (D/E) ratio of 0.0, which may show that the company is not taking advantage of profits from borrowing. Advent Technologies has a current ratio of 5.06, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Advent to invest in growth at high rates of return. Advent Technologies Total Assets Over Time
Advent Technologies Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Advent Technologies 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.Advent Technologies Debt Ratio | 13.0 |
Advent Net Debt
Understaning Advent Technologies Use of Financial Leverage
Advent Technologies financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Advent Technologies's total debt position, including all of 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 Advent Technologies assets, the company is considered highly leveraged. Understanding the composition and structure of overall Advent Technologies debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Advent Technologies' 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 Advent Technologies' 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 | ||
| Net Debt | -18.7 M | -19.6 M | |
| Short and Long Term Debt Total | 13.9 M | 14.6 M | |
| Short Term Debt | 2.6 M | 1.6 M | |
| Long Term Debt | 158.5 K | 99.3 K | |
| Short and Long Term Debt | 2.5 M | 2.2 M | |
| Net Debt To EBITDA | 1.33 | 1.39 | |
| Debt To Equity | 0.22 | 0.23 | |
| Interest Debt Per Share | 0.73 | 0.77 | |
| Debt To Assets | 0.12 | 0.13 | |
| Long Term Debt To Capitalization | 0.12 | 0.13 | |
| Total Debt To Capitalization | 0.18 | 0.17 | |
| Debt Equity Ratio | 0.22 | 0.23 | |
| Debt Ratio | 0.12 | 0.13 | |
| Cash Flow To Debt Ratio | (3.06) | (3.21) |
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When determining whether Advent Technologies is a strong investment it is important to analyze Advent Technologies' 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 Advent Technologies' future performance. For an informed investment choice regarding Advent Stock, refer to the following important reports:Check out the analysis of Advent Technologies Fundamentals Over Time. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Is Electric Utilities 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 Advent Technologies. If investors know Advent 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 Advent Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (52.50) | Revenue Per Share 2.928 | Quarterly Revenue Growth (0.47) | Return On Assets (0.33) | Return On Equity (1.33) |
The market value of Advent Technologies is measured differently than its book value, which is the value of Advent that is recorded on the company's balance sheet. Investors also form their own opinion of Advent Technologies' value that differs from its market value or its book value, called intrinsic value, which is Advent Technologies' 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 Advent Technologies' market value can be influenced by many factors that don't directly affect Advent Technologies' 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 Advent Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Advent Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advent Technologies' 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.