Clean Science Corporate Bonds and Leverage Analysis
| CLEAN Stock | 1,398 105.65 8.17% |
As of the 11th of December 2024, Short and Long Term Debt Total is likely to drop to about 16.6 M. In addition to that, Net Debt is likely to drop to about (88.4 M) With a high degree of financial leverage come high-interest payments, which usually reduce Clean Science's Earnings Per Share (EPS).
As of the 11th of December 2024, Change To Liabilities is likely to grow to about 496.6 M, while Total Current Liabilities is likely to drop about 1.1 B. Clean |
Given the importance of Clean Science's capital structure, the first step in the capital decision process is for the management of Clean Science 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 Clean Science and to issue bonds at a reasonable cost.
Clean Science Total Assets Over Time
Clean Science 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 Clean Science's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Clean Science, which in turn will lower the firm's financial flexibility.Clean Science Corporate Bonds Issued
Clean Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Clean Science Use of Financial Leverage
Leverage ratios show Clean Science's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Clean Science's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 20.3 M | 16.6 M | |
| Net Debt | -84.2 M | -88.4 M | |
| Short Term Debt | 1.6 M | 1.5 M |
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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.Other Information on Investing in Clean Stock
Clean Science financial ratios help investors to determine whether Clean Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Clean with respect to the benefits of owning Clean Science security.
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.