HWH International Current Debt
| HWH Stock | 1.14 0.06 5.00% |
HWH International holds a debt-to-equity ratio of 0.0. As of now, HWH International's Debt To Assets are increasing as compared to previous years. The HWH International's current Total Debt To Capitalization is estimated to increase to 0.69, while Net Debt is projected to decrease to (399.4 K). With a high degree of financial leverage come high-interest payments, which usually reduce HWH International's Earnings Per Share (EPS).
As of now, HWH International's Debt To Assets are increasing as compared to previous years. The HWH International's current Total Debt To Capitalization is estimated to increase to 0.69, while Net Debt is projected to decrease to (399.4 K). HWH |
HWH International Financial Leverage Rating
HWH International bond ratings play a critical role in determining how much HWH International 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 HWH International's borrowing costs.| Piotroski F Score | 4 Poor |
| Beneish M Score | -4.99 Unlikely Manipulator |
HWH International Total Assets Over Time
HWH International Assets Financed by Debt
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 HWH International's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of HWH International, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a HWH International debt ratio should be compared their industry average or other competing firms.HWH Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning HWH International Use of Financial Leverage
HWH International financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures HWH International'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 HWH International assets, the company is considered highly leveraged. Understanding the composition and structure of overall HWH International 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 HWH International'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 HWH International'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).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 205.3 K | 409.4 K | |
| Net Debt | -380.3 K | -399.4 K | |
| Short Term Debt | 205.3 K | 227.7 K | |
| Short and Long Term Debt | 184.8 K | 164.2 K | |
| Net Debt To EBITDA | 1.12 | 1.07 | |
| Debt To Equity | 1.53 | 1.61 | |
| Interest Debt Per Share | 0.12 | 0.11 | |
| Debt To Assets | 0.30 | 0.32 | |
| Long Term Debt To Capitalization | 0.39 | 0.20 | |
| Total Debt To Capitalization | 0.66 | 0.69 | |
| Debt Equity Ratio | 1.53 | 1.61 | |
| Debt Ratio | 0.30 | 0.32 | |
| Cash Flow To Debt Ratio | (0.60) | (0.63) |
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When determining whether HWH International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of HWH International's 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 Hwh International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hwh International Stock:Check out the analysis of HWH International Fundamentals Over Time. For more detail on how to invest in HWH Stock please use our How to Invest in HWH International guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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When running HWH International's price analysis, check to measure HWH International's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HWH International is operating at the current time. Most of HWH International's value examination focuses on studying past and present price action to predict the probability of HWH International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HWH International's price. Additionally, you may evaluate how the addition of HWH International to your portfolios can decrease your overall portfolio volatility.
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Is HWH International's industry 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 HWH International. If investors know HWH 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 HWH International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of HWH International is measured differently than its book value, which is the value of HWH that is recorded on the company's balance sheet. Investors also form their own opinion of HWH International's value that differs from its market value or its book value, called intrinsic value, which is HWH International'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 HWH International's market value can be influenced by many factors that don't directly affect HWH International'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 HWH International's value and its price as these two are different measures arrived at by different means. Investors typically determine if HWH International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HWH International'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.