Small Cap Current Debt
| RCC Stock | USD 24.01 0.06 0.25% |
At present, Small Cap's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Long Term Debt is expected to grow to about 9.6 B, whereas Short Term Debt is forecasted to decline to about 142.4 M. With a high degree of financial leverage come high-interest payments, which usually reduce Small Cap's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.75346375 | Current Value 0.58 | Quarterly Volatility 0.15996038 |
Small |
Small Cap Financial Leverage Rating
Small Cap Premium bond ratings play a critical role in determining how much Small Cap 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 Small Cap's borrowing costs.| Piotroski F Score | 2 Frail |
| Beneish M Score | -2.27 Unlikely Manipulator |
Small Cap Total Assets Over Time
Small Cap 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 Small Cap's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Small Cap, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Small Cap debt ratio should be compared their industry average or other competing firms.Small Net Debt
Net Debt |
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Understaning Small Cap Use of Financial Leverage
Small Cap financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Small Cap'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 Small Cap assets, the company is considered highly leveraged. Understanding the composition and structure of overall Small Cap 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 Small Cap'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 Small Cap'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 | ||
| Net Debt | 9.1 B | 9.5 B | |
| Short and Long Term Debt Total | 9.2 B | 9.7 B | |
| Short Term Debt | 149.9 M | 142.4 M | |
| Long Term Debt | 9.1 B | 9.6 B | |
| Long Term Debt Total | 9.1 B | 9.6 B | |
| Net Debt To EBITDA | 25.78 | 27.07 | |
| Debt To Equity | 3.68 | 3.23 | |
| Interest Debt Per Share | 68.72 | 48.31 | |
| Debt To Assets | 0.75 | 0.58 | |
| Long Term Debt To Capitalization | 0.78 | 0.61 | |
| Total Debt To Capitalization | 0.79 | 0.63 | |
| Debt Equity Ratio | 3.68 | 3.23 | |
| Debt Ratio | 0.75 | 0.58 | |
| Cash Flow To Debt Ratio | 0.01 | 0.01 |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Information and Resources on Investing in Small Stock
When determining whether Small Cap Premium offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Small Cap'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 Small Cap Premium Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Small Cap Premium Stock:Check out the analysis of Small Cap Fundamentals Over Time. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Oil & Gas Exploration & Production 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 Small Cap. If investors know Small 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 Small Cap listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Return On Equity 0.1426 |
The market value of Small Cap Premium is measured differently than its book value, which is the value of Small that is recorded on the company's balance sheet. Investors also form their own opinion of Small Cap's value that differs from its market value or its book value, called intrinsic value, which is Small Cap'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 Small Cap's market value can be influenced by many factors that don't directly affect Small Cap'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 Small Cap's value and its price as these two are different measures arrived at by different means. Investors typically determine if Small Cap is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Small Cap'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.