Income Opportunity Debt

IOR Stock  USD 18.95  1.18  6.64%   
Income Opportunity Realty holds a debt-to-equity ratio of 1.41. At this time, Income Opportunity's Debt To Equity is relatively stable compared to the past year. As of 12/24/2024, Debt Equity Ratio is likely to grow to 0.14, though Net Debt is likely to grow to (67.5 K). . Income Opportunity's financial risk is the risk to Income Opportunity stockholders that is caused by an increase in debt.
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
0.13
Current Value
0.12
Quarterly Volatility
0.08272673
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of 12/24/2024, Liabilities And Stockholders Equity is likely to drop to about 101.1 M. Non Current Liabilities Total is expected to grow at the current pace this year
  
Check out the analysis of Income Opportunity Fundamentals Over Time.

Income Opportunity Bond Ratings

Income Opportunity Realty financial ratings play a critical role in determining how much Income Opportunity 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 Income Opportunity's borrowing costs.
Piotroski F Score
7
StrongView
Beneish M Score
(3.11)
Unlikely ManipulatorView

Income Opportunity Realty Debt to Cash Allocation

Many companies such as Income Opportunity, 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.
As of 12/24/2024, Debt To Equity is likely to grow to 0.14Note however, debt could still be an excellent tool for Income to invest in growth at high rates of return.

Income Opportunity Total Assets Over Time

Income Opportunity Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Income Opportunity 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.

Income Opportunity Debt Ratio

    
  12.0   
It seems most of the Income Opportunity'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 Income Opportunity's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Income Opportunity, which in turn will lower the firm's financial flexibility.

Income Opportunity Corporate Bonds Issued

Income Short Long Term Debt Total

Short Long Term Debt Total

8.76 Million

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

Understaning Income Opportunity Use of Financial Leverage

Income Opportunity's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Income Opportunity's current equity. If creditors own a majority of Income Opportunity's assets, the company is considered highly leveraged. Understanding the composition and structure of Income Opportunity'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 Total9.2 M8.8 M
Net Debt-71 K-67.5 K
Debt To Equity 0.12  0.14 
Interest Debt Per Share 0.18  0.17 
Debt To Assets 0.13  0.12 
Long Term Debt To Capitalization 0.13  0.12 
Total Debt To Capitalization 0.13  0.12 
Debt Equity Ratio 0.12  0.14 
Debt Ratio 0.13  0.12 
Cash Flow To Debt Ratio 0.40  0.42 
Please read more on our technical analysis page.

Pair Trading with Income Opportunity

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 Income Opportunity 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 Income Opportunity will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Income Opportunity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Income Opportunity 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 Income Opportunity - 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 Income Opportunity Realty to buy it.
The correlation of Income Opportunity 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 Income Opportunity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Income Opportunity Realty 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 Income Opportunity 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 Income Stock Analysis

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