Banzai International Current Debt
| BNZI Stock | 1.64 0.27 19.71% |
As of now, Banzai International's Debt To Assets are increasing as compared to previous years. The Banzai International's current Debt Ratio is estimated to increase to 3.21, while Net Debt is projected to decrease to under 9.1 M. With a high degree of financial leverage come high-interest payments, which usually reduce Banzai International's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 3.05661318 | Current Value 3.21 | Quarterly Volatility 1.19768621 |
Given that Banzai International'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 Banzai International 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 Banzai International to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Banzai International is said to be less leveraged. If creditors hold a majority of Banzai International's assets, the Company is said to be highly leveraged.
The Banzai International's current Non Current Liabilities Other is estimated to increase to about 70.1 K, while Total Current Liabilities is projected to decrease to under 18.7 M. Banzai |
Banzai International Financial Rating
Banzai International financial ratings play a critical role in determining how much Banzai International 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 Banzai International's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (10.32) | Unlikely Manipulator | View |
Banzai International Total Assets Over Time
Banzai International Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Banzai International 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.Banzai International Debt Ratio | 321.0 |
Banzai Net Debt
Net Debt |
|
Understaning Banzai International Use of Financial Leverage
Understanding the composition and structure of Banzai International's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Banzai International'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 | 14.3 M | 9.1 M | |
| Short and Long Term Debt Total | 16.4 M | 14.1 M | |
| Short and Long Term Debt | 16.2 M | 13.9 M | |
| Short Term Debt | 16.4 M | 10.6 M | |
| Net Debt To EBITDA | (1.65) | (1.73) | |
| Debt To Equity | (0.51) | (0.53) | |
| Interest Debt Per Share | 3.17 | 1.62 | |
| Debt To Assets | 3.06 | 3.21 | |
| Long Term Debt To Capitalization | 0.01 | 0.01 | |
| Total Debt To Capitalization | (1.03) | (1.08) | |
| Debt Equity Ratio | (0.51) | (0.53) | |
| Debt Ratio | 3.06 | 3.21 | |
| Cash Flow To Debt Ratio | (0.10) | (0.10) |
Currently Active Assets on Macroaxis
When determining whether Banzai International is a strong investment it is important to analyze Banzai International's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Banzai International's future performance. For an informed investment choice regarding Banzai Stock, refer to the following important reports:Check out the analysis of Banzai International Fundamentals Over Time. For more detail on how to invest in Banzai Stock please use our How to Invest in Banzai International guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Is Application Software 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 Banzai International. If investors know Banzai 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 Banzai International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (6.98) | Revenue Per Share 14.72 | Quarterly Revenue Growth (0.10) | Return On Assets (1.70) |
The market value of Banzai International is measured differently than its book value, which is the value of Banzai that is recorded on the company's balance sheet. Investors also form their own opinion of Banzai International's value that differs from its market value or its book value, called intrinsic value, which is Banzai International'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 Banzai International's market value can be influenced by many factors that don't directly affect Banzai International'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 Banzai International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Banzai International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Banzai International'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.