Aemetis Debt

AMTX Stock  USD 3.01  0.04  1.31%   
Aemetis holds a debt-to-equity ratio of -3.36. At this time, Aemetis' Net Debt is fairly stable compared to the past year. Short and Long Term Debt Total is likely to rise to about 438.2 M in 2024, whereas Short and Long Term Debt is likely to drop slightly above 28.1 M in 2024. With a high degree of financial leverage come high-interest payments, which usually reduce Aemetis' Earnings Per Share (EPS).
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
1.69441591
Current Value
1.08
Quarterly Volatility
0.51125875
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Aemetis' Total Current Liabilities is fairly stable compared to the past year. Liabilities And Stockholders Equity is likely to rise to about 255.6 M in 2024, whereas Non Current Liabilities Other is likely to drop slightly above 3.2 M in 2024.
  
Check out the analysis of Aemetis Fundamentals Over Time.
For more information on how to buy Aemetis Stock please use our How to Invest in Aemetis guide.

Aemetis Bond Ratings

Aemetis financial ratings play a critical role in determining how much Aemetis 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 Aemetis' borrowing costs.
Piotroski F Score
3
FrailView
Beneish M Score
(3.22)
Unlikely ManipulatorView

Aemetis Debt to Cash Allocation

As Aemetis follows its natural business cycle, the capital allocation decisions will not magically go away. Aemetis' 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.
Aemetis currently holds 417.34 M in liabilities. Aemetis has a current ratio of 0.25, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Aemetis' use of debt, we should always consider it together with its cash and equity.

Aemetis Common Stock Shares Outstanding Over Time

Aemetis Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Aemetis 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.

Aemetis Debt Ratio

    
  108.0   
It appears most of the Aemetis' assets are financed through 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 Aemetis' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Aemetis, which in turn will lower the firm's financial flexibility.

Aemetis Corporate Bonds Issued

Aemetis Net Debt

Net Debt

435.1 Million

At this time, Aemetis' Net Debt is fairly stable compared to the past year.

Understaning Aemetis Use of Financial Leverage

Understanding the structure of Aemetis' debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Aemetis' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
Last ReportedProjected for Next Year
Net Debt414.4 M435.1 M
Short and Long Term Debt Total417.3 M438.2 M
Short Term Debt42 M44.1 M
Long Term Debt257.7 M270.6 M
Long Term Debt Total226.6 M237.9 M
Short and Long Term Debt37 M28.1 M
Net Debt To EBITDA(11.90)(11.31)
Debt To Equity(1.90)(2.00)
Interest Debt Per Share 12.54  11.91 
Debt To Assets 1.69  1.08 
Long Term Debt To Capitalization 2.41  2.08 
Total Debt To Capitalization 2.11  1.58 
Debt Equity Ratio(1.90)(2.00)
Debt Ratio 1.69  1.08 
Cash Flow To Debt Ratio 0.03  0.04 
Please read more on our technical analysis page.

Also Currently Popular

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 Tools for Aemetis Stock Analysis

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