Hudson Technologies Debt
| HDSN Stock | USD 5.94 0.06 1.02% |
Hudson Technologies holds a debt-to-equity ratio of 0.658. At this time, Hudson Technologies' Long Term Debt Total is very stable compared to the past year. As of the 30th of November 2024, Debt To Assets is likely to grow to 0.25, while Short and Long Term Debt Total is likely to drop about 6.3 M. With a high degree of financial leverage come high-interest payments, which usually reduce Hudson Technologies' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Hudson Technologies' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Hudson Technologies' 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 Hudson Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Hudson Technologies' stakeholders.
For most companies, including Hudson Technologies, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Hudson Technologies, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Hudson Technologies' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.0468 | Book Value 5.617 | Operating Margin 0.1126 | Profit Margin 0.1249 | Return On Assets 0.0776 |
Hudson |
Hudson Technologies Bond Ratings
Hudson Technologies financial ratings play a critical role in determining how much Hudson Technologies 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 Hudson Technologies' borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (2.23) | Unlikely Manipulator | View |
Hudson Technologies Debt to Cash Allocation
As Hudson Technologies follows its natural business cycle, the capital allocation decisions will not magically go away. Hudson Technologies' 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.
Hudson Technologies currently holds 6.68 M in liabilities with Debt to Equity (D/E) ratio of 0.66, which is about average as compared to similar companies. Hudson Technologies has a current ratio of 3.28, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Hudson Technologies' use of debt, we should always consider it together with its cash and equity.Hudson Technologies Total Assets Over Time
Hudson Technologies Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Hudson Technologies 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.Hudson Technologies Debt Ratio | 25.0 |
Hudson Technologies Corporate Bonds Issued
Hudson Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Hudson Technologies Use of Financial Leverage
Leverage ratios show Hudson Technologies' total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Hudson Technologies' financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 6.7 M | 6.3 M | |
| Net Debt | -5.8 M | -5.5 M | |
| Short Term Debt | 1.9 M | 1.8 M | |
| Long Term Debt | 44.8 M | 24.6 M | |
| Long Term Debt Total | 89.7 M | 94.2 M | |
| Short and Long Term Debt | 4.9 M | 4.6 M | |
| Net Debt To EBITDA | (0.07) | (0.07) | |
| Debt To Equity | 0.22 | 0.21 | |
| Interest Debt Per Share | 0.18 | 0.17 | |
| Debt To Assets | 0.14 | 0.25 | |
| Long Term Debt To Capitalization | 0.16 | 0.20 | |
| Total Debt To Capitalization | 0.18 | 0.32 | |
| Debt Equity Ratio | 0.22 | 0.21 | |
| Debt Ratio | 0.14 | 0.25 | |
| Cash Flow To Debt Ratio | 1.31 | 0.66 |
Pair Trading with Hudson Technologies
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 Hudson Technologies 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 Hudson Technologies will appreciate offsetting losses from the drop in the long position's value.Moving together with Hudson Stock
Moving against Hudson Stock
| 0.89 | G | Genpact Limited | PairCorr |
| 0.89 | VRSK | Verisk Analytics | PairCorr |
| 0.88 | DRVN | Driven Brands Holdings | PairCorr |
| 0.87 | LZ | LegalZoom | PairCorr |
| 0.87 | WM | Waste Management Sell-off Trend | PairCorr |
The ability to find closely correlated positions to Hudson Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hudson Technologies 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 Hudson Technologies - 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 Hudson Technologies to buy it.
The correlation of Hudson Technologies 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 Hudson Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hudson Technologies 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 Hudson Technologies 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.Check out the analysis of Hudson Technologies Fundamentals Over Time. To learn how to invest in Hudson Stock, please use our How to Invest in Hudson Technologies guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Environmental & Facilities Services 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 Hudson Technologies. If investors know Hudson 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 Hudson Technologies 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 (0.41) | Earnings Share 0.65 | Revenue Per Share 5.437 | Quarterly Revenue Growth (0.19) | Return On Assets 0.0776 |
The market value of Hudson Technologies is measured differently than its book value, which is the value of Hudson that is recorded on the company's balance sheet. Investors also form their own opinion of Hudson Technologies' value that differs from its market value or its book value, called intrinsic value, which is Hudson Technologies' 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 Hudson Technologies' market value can be influenced by many factors that don't directly affect Hudson Technologies' 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 Hudson Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Hudson Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hudson Technologies' 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.