Fobi AI Debt
FOBI Stock | 0.04 0.00 0.00% |
At this time, Fobi AI's Net Debt To EBITDA is fairly stable compared to the past year. Debt To Equity is likely to climb to 6.38 in 2024, whereas Long Term Debt is likely to drop slightly above 234.4 K in 2024. . Fobi AI's financial risk is the risk to Fobi AI stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.53 | Current Value 0.56 | Quarterly Volatility 0.22031632 |
Fobi |
Fobi AI Total Assets Over Time
Fobi AI Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Fobi AI 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.Fobi AI Debt Ratio | 56.0 |
Fobi AI Corporate Bonds Issued
Fobi Net Debt
Net Debt |
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Understaning Fobi AI Use of Financial Leverage
Understanding the structure of Fobi AI's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Fobi AI'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.
Last Reported | Projected for Next Year | ||
Net Debt | 279.1 K | 167.3 K | |
Long Term Debt | 263.7 K | 234.4 K | |
Short and Long Term Debt | 18 K | 17.1 K | |
Net Debt To EBITDA | 0.01 | 0.01 | |
Debt To Equity | 6.08 | 6.38 | |
Interest Debt Per Share | 0.06 | 0.05 | |
Debt To Assets | 0.53 | 0.56 | |
Total Debt To Capitalization | 0.97 | 1.02 | |
Debt Equity Ratio | 6.08 | 6.38 | |
Debt Ratio | 0.53 | 0.56 | |
Cash Flow To Debt Ratio | 0.86 | 0.91 |
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Additional Tools for Fobi Stock Analysis
When running Fobi AI's price analysis, check to measure Fobi AI'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 Fobi AI is operating at the current time. Most of Fobi AI's value examination focuses on studying past and present price action to predict the probability of Fobi AI's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fobi AI's price. Additionally, you may evaluate how the addition of Fobi AI 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.