BurTech Acquisition Debt
| BRKH Stock | USD 11.55 0.05 0.43% |
BurTech Acquisition Corp holds a debt-to-equity ratio of 0.004. As of now, BurTech Acquisition's Interest Debt Per Share is increasing as compared to previous years. The BurTech Acquisition's current Debt To Assets is estimated to increase to 0.01, while Short and Long Term Debt Total is projected to decrease to under 525.3 K. With a high degree of financial leverage come high-interest payments, which usually reduce BurTech Acquisition's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
BurTech Acquisition'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. BurTech Acquisition'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 BurTech Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect BurTech Acquisition's stakeholders.
For most companies, including BurTech Acquisition, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for BurTech Acquisition Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, BurTech Acquisition's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 5.9012 | Book Value (1.04) | Return On Assets (0.03) |
BurTech |
BurTech Acquisition Bond Ratings
BurTech Acquisition Corp financial ratings play a critical role in determining how much BurTech Acquisition 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 BurTech Acquisition's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (5.27) | Unlikely Manipulator | View |
BurTech Acquisition Corp Debt to Cash Allocation
As BurTech Acquisition Corp follows its natural business cycle, the capital allocation decisions will not magically go away. BurTech Acquisition'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.
BurTech Acquisition Corp currently holds 810.35 K in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the company is not taking enough advantage from borrowing. BurTech Acquisition Corp has a current ratio of 4.32, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about BurTech Acquisition's use of debt, we should always consider it together with its cash and equity.BurTech Acquisition Total Assets Over Time
BurTech Acquisition Assets Financed by Debt
The debt-to-assets ratio shows the degree to which BurTech Acquisition 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.BurTech Acquisition Debt Ratio | 1.05 |
BurTech Acquisition Corporate Bonds Issued
Most BurTech bonds can be classified according to their maturity, which is the date when BurTech Acquisition Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
BurTech Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning BurTech Acquisition Use of Financial Leverage
Understanding the composition and structure of BurTech Acquisition'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 BurTech Acquisition'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 | ||
| Short and Long Term Debt Total | 931.9 K | 525.3 K | |
| Net Debt | 810.3 K | 850.9 K | |
| Short and Long Term Debt | 931.9 K | 525.3 K | |
| Short Term Debt | 931.9 K | 525.3 K | |
| Net Debt To EBITDA | 0.14 | 0.15 | |
| Debt To Equity | 0.02 | 0.02 | |
| Interest Debt Per Share | 0.03 | 0.04 | |
| Debt To Assets | 0.01 | 0.01 | |
| Total Debt To Capitalization | 0.02 | 0.02 | |
| Debt Equity Ratio | 0.02 | 0.02 | |
| Debt Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | (3.31) | (3.15) |
Currently Active Assets on Macroaxis
When determining whether BurTech Acquisition Corp is a strong investment it is important to analyze BurTech Acquisition'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 BurTech Acquisition's future performance. For an informed investment choice regarding BurTech Stock, refer to the following important reports:Check out the analysis of BurTech Acquisition Fundamentals Over Time. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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 BurTech Acquisition. If investors know BurTech 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 BurTech Acquisition listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.99) | Earnings Share (0.15) | Return On Assets (0.03) |
The market value of BurTech Acquisition Corp is measured differently than its book value, which is the value of BurTech that is recorded on the company's balance sheet. Investors also form their own opinion of BurTech Acquisition's value that differs from its market value or its book value, called intrinsic value, which is BurTech Acquisition'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 BurTech Acquisition's market value can be influenced by many factors that don't directly affect BurTech Acquisition'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 BurTech Acquisition's value and its price as these two are different measures arrived at by different means. Investors typically determine if BurTech Acquisition is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BurTech Acquisition'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.