10X Capital Current Debt

VCXB Stock  USD 11.00  0.01  0.09%   
At present, 10X Capital's Debt To Equity is projected to slightly grow based on the last few years of reporting. The current year's Debt Equity Ratio is expected to grow to 0.0008, whereas Short and Long Term Debt Total is forecasted to decline to about 211.6 K. With a high degree of financial leverage come high-interest payments, which usually reduce 10X Capital's Earnings Per Share (EPS).
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
0.000931
Current Value
0.000884
Quarterly Volatility
0.09806838
 
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Given that 10X Capital's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which 10X Capital is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of 10X Capital to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, 10X Capital is said to be less leveraged. If creditors hold a majority of 10X Capital's assets, the Company is said to be highly leveraged.
At present, 10X Capital's Liabilities And Stockholders Equity is projected to increase significantly based on the last few years of reporting. The current year's Non Current Liabilities Total is expected to grow to about 17.2 M, whereas Total Current Liabilities is forecasted to decline to about 1.8 M.
  
Check out the analysis of 10X Capital Fundamentals Over Time.

10X Capital Financial Rating

10X Capital Venture financial ratings play a critical role in determining how much 10X Capital 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 10X Capital's borrowing costs.
Piotroski F Score
5
HealthyView
Beneish M Score
(5.14)
Unlikely ManipulatorView

10X Capital Venture Debt to Cash Allocation

As 10X Capital Venture follows its natural business cycle, the capital allocation decisions will not magically go away. 10X Capital's 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.
10X Capital Venture currently holds 250 K in liabilities. 10X Capital Venture has a current ratio of 1.4, which is within standard range for the sector. Note, when we think about 10X Capital's use of debt, we should always consider it together with its cash and equity.

10X Capital Total Assets Over Time

10X Capital Assets Financed by Debt

The debt-to-assets ratio shows the degree to which 10X Capital 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.

10X Capital Debt Ratio

    
  0.0884   
It appears most of the 10X Capital's assets are financed through equity. 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 10X Capital's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of 10X Capital, which in turn will lower the firm's financial flexibility.

10X Short Long Term Debt Total

Short Long Term Debt Total

211,625

At present, 10X Capital's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting.

Understaning 10X Capital Use of Financial Leverage

10X Capital financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures 10X Capital'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 10X Capital assets, the company is considered highly leveraged. Understanding the composition and structure of overall 10X Capital 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 10X Capital'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 10X Capital'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 ReportedProjected for Next Year
Short and Long Term Debt Total287.5 K211.6 K
Net Debt210.3 K174.7 K
Short and Long Term Debt287.5 K211.6 K
Short Term Debt287.5 K211.6 K
Net Debt To EBITDA(0.02)(0.02)
Interest Debt Per Share(0.10)(0.11)
Cash Flow To Debt Ratio(4.90)(5.15)
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Additional Information and Resources on Investing in 10X Stock

When determining whether 10X Capital Venture offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of 10X Capital'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 10x Capital Venture Stock. Outlined below are crucial reports that will aid in making a well-informed decision on 10x Capital Venture Stock:
Check out the analysis of 10X Capital Fundamentals Over Time.
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Is Asset Management & Custody Banks 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 10X Capital. If investors know 10X 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 10X Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.08)
Return On Assets
(0.03)
The market value of 10X Capital Venture is measured differently than its book value, which is the value of 10X that is recorded on the company's balance sheet. Investors also form their own opinion of 10X Capital's value that differs from its market value or its book value, called intrinsic value, which is 10X Capital'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 10X Capital's market value can be influenced by many factors that don't directly affect 10X Capital'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 10X Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if 10X Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 10X Capital'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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.