Medigen Vaccine Biologics 55336VAG5 Bond

6547 Stock  TWD 35.45  0.35  0.98%   
Medigen Vaccine Biologics holds a debt-to-equity ratio of 0.062. . Medigen Vaccine's financial risk is the risk to Medigen Vaccine stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Medigen Vaccine's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Medigen Vaccine's 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 Medigen Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Medigen Vaccine's stakeholders.
For most companies, including Medigen Vaccine, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Medigen Vaccine Biologics, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Medigen Vaccine's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
  
Check out the analysis of Medigen Vaccine Fundamentals Over Time.
View Bond Profile
Given the importance of Medigen Vaccine's capital structure, the first step in the capital decision process is for the management of Medigen Vaccine 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 Medigen Vaccine Biologics to issue bonds at a reasonable cost.
Popular NameMedigen Vaccine MPLX LP 4875
Equity ISIN CodeTW0006547003
Bond Issue ISIN CodeUS55336VAG59
S&P Rating
Others
Maturity Date1st of December 2024
Issuance Date1st of June 2016
Coupon4.875 %
View All Medigen Vaccine Outstanding Bonds

Medigen Vaccine Biologics Outstanding Bond Obligations

Understaning Medigen Vaccine Use of Financial Leverage

Understanding the structure of Medigen Vaccine's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Medigen Vaccine's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
Medigen Vaccine Biologics Corporation, a biotechnology drug company, focuses on the development and production of vaccines and biologics in Taiwan and internationally. Medigen Vaccine Biologics Corporation is a subsidiary of Medigen Biotechnology Corp. MEDIGEN VACCINE operates under Biotechnology classification in Taiwan and is traded on Taiwan OTC Exchange.
Please read more on our technical analysis page.

Pair Trading with Medigen Vaccine

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Medigen Vaccine position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Medigen Vaccine will appreciate offsetting losses from the drop in the long position's value.

Moving together with Medigen Stock

  0.964743 Oneness BiotechPairCorr
  0.914174 OBI PharmaPairCorr

Moving against Medigen Stock

  0.822609 Yang Ming MarinePairCorr
  0.821449 Chia Her Industrial SplitPairCorr
  0.70050 YuantaP shares TaiwanPairCorr
  0.664162 PharmaEnginePairCorr
  0.650057 Fubon MSCI TaiwanPairCorr
The ability to find closely correlated positions to Medigen Vaccine could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Medigen Vaccine when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Medigen Vaccine - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Medigen Vaccine Biologics to buy it.
The correlation of Medigen Vaccine is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Medigen Vaccine moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Medigen Vaccine Biologics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Medigen Vaccine can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Additional Tools for Medigen Stock Analysis

When running Medigen Vaccine's price analysis, check to measure Medigen Vaccine'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 Medigen Vaccine is operating at the current time. Most of Medigen Vaccine's value examination focuses on studying past and present price action to predict the probability of Medigen Vaccine's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Medigen Vaccine's price. Additionally, you may evaluate how the addition of Medigen Vaccine to your portfolios can decrease your overall portfolio volatility.

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.