Idaho Strategic Current Debt

IDR Stock  USD 13.03  0.37  2.92%   
Idaho Strategic Resources holds a debt-to-equity ratio of 0.117. At this time, Idaho Strategic's Cash Flow To Debt Ratio is relatively stable compared to the past year. . Idaho Strategic's financial risk is the risk to Idaho Strategic stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Idaho Strategic'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. Idaho Strategic'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 Idaho Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Idaho Strategic's stakeholders.
For most companies, including Idaho Strategic, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Idaho Strategic Resources, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Idaho Strategic'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
5.2327
Book Value
2.455
Operating Margin
0.233
Profit Margin
0.3044
Return On Assets
0.1169
At this time, Idaho Strategic's Total Current Liabilities is relatively stable compared to the past year. As of 12/04/2024, Liabilities And Stockholders Equity is likely to grow to about 25.1 M, while Non Current Liabilities Other is likely to drop slightly above 137.9 K.
  
Check out the analysis of Idaho Strategic Fundamentals Over Time.

Idaho Strategic Financial Rating

Idaho Strategic Resources financial ratings play a critical role in determining how much Idaho Strategic 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 Idaho Strategic's borrowing costs.
Piotroski F Score
7
StrongView
Beneish M Score
(2.55)
Unlikely ManipulatorView

Idaho Strategic Resources Debt to Cash Allocation

Many companies such as Idaho Strategic, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Idaho Strategic Resources has 2.32 M in debt with debt to equity (D/E) ratio of 0.12, which may show that the company is not taking advantage of profits from borrowing. Idaho Strategic Resources has a current ratio of 2.95, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Idaho to invest in growth at high rates of return.

Idaho Strategic Total Assets Over Time

Idaho Strategic Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Idaho Strategic 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.

Idaho Strategic Debt Ratio

    
  7.57   
It seems most of the Idaho Strategic's assets are financed through equity. 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 Idaho Strategic's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Idaho Strategic, which in turn will lower the firm's financial flexibility.

Idaho Short Long Term Debt Total

Short Long Term Debt Total

2.43 Million

At this time, Idaho Strategic's Short and Long Term Debt Total is relatively stable compared to the past year.

Understaning Idaho Strategic Use of Financial Leverage

Idaho Strategic's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Idaho Strategic's current equity. If creditors own a majority of Idaho Strategic's assets, the company is considered highly leveraged. Understanding the composition and structure of Idaho Strategic's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last ReportedProjected for Next Year
Short and Long Term Debt Total2.3 M2.4 M
Net Debt29.7 K28.2 K
Short Term Debt978.2 KM
Long Term Debt1.3 M1.8 M
Long Term Debt Total3.5 M1.8 M
Short and Long Term Debt978.2 K643.5 K
Net Debt To EBITDA 0.01  0.01 
Debt To Equity 0.13  0.17 
Interest Debt Per Share 0.19  0.11 
Debt To Assets 0.10  0.08 
Long Term Debt To Capitalization 0.07  0.10 
Total Debt To Capitalization 0.12  0.12 
Debt Equity Ratio 0.13  0.17 
Debt Ratio 0.10  0.08 
Cash Flow To Debt Ratio 0.91  0.95 
Please read more on our technical analysis page.

Pair Trading with Idaho Strategic

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 Idaho Strategic 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 Idaho Strategic will appreciate offsetting losses from the drop in the long position's value.

Moving together with Idaho Stock

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Moving against Idaho Stock

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The ability to find closely correlated positions to Idaho Strategic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Idaho Strategic 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 Idaho Strategic - 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 Idaho Strategic Resources to buy it.
The correlation of Idaho Strategic 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 Idaho Strategic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Idaho Strategic Resources 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 Idaho Strategic 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.
Pair CorrelationCorrelation Matching

Additional Tools for Idaho Stock Analysis

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