JetAI Current Debt
| JTAI Stock | 4.52 0.38 7.76% |
The JetAI's current Net Debt is estimated to increase to about 25.3 K, while Short and Long Term Debt Total is projected to decrease to under 1.6 M. With a high degree of financial leverage come high-interest payments, which usually reduce JetAI's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0922 | Current Value 0.0774 | Quarterly Volatility 0.00476152 |
Given that JetAI's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which JetAI is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of JetAI to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, JetAI is said to be less leveraged. If creditors hold a majority of JetAI's assets, the Company is said to be highly leveraged.
The JetAI's current Total Current Liabilities is estimated to increase to about 7.3 M, while Liabilities And Stockholders Equity is projected to decrease to under 4.7 M. JetAI |
JetAI Financial Rating
JetAI Inc financial ratings play a critical role in determining how much JetAI 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 JetAI's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (11.64) | Unlikely Manipulator | View |
JetAI Total Current Liabilities Over Time
JetAI Assets Financed by Debt
The debt-to-assets ratio shows the degree to which JetAI 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.JetAI Debt Ratio | 7.74 |
JetAI Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning JetAI Use of Financial Leverage
Understanding the composition and structure of JetAI'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 JetAI'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 | 2.1 M | 1.6 M | |
| Net Debt | 18.8 K | 25.3 K | |
| Short and Long Term Debt | 676.2 K | 430.5 K | |
| Short Term Debt | 1.1 M | 648.9 K | |
| Debt To Equity | (0.17) | (0.16) | |
| Interest Debt Per Share | 0.10 | 0.05 | |
| Debt To Assets | 0.09 | 0.08 | |
| Total Debt To Capitalization | (0.20) | (0.19) | |
| Debt Equity Ratio | (0.17) | (0.16) | |
| Debt Ratio | 0.09 | 0.08 | |
| Cash Flow To Debt Ratio | (5.79) | (6.08) |
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When determining whether JetAI Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of JetAI's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Jetai Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Jetai Inc Stock:Check out the analysis of JetAI Fundamentals Over Time. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Is Passenger Airlines 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 JetAI. If investors know JetAI 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 JetAI listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (191.17) | Revenue Per Share 319.908 | Quarterly Revenue Growth 0.104 | Return On Assets (2.20) | Return On Equity (31.99) |
The market value of JetAI Inc is measured differently than its book value, which is the value of JetAI that is recorded on the company's balance sheet. Investors also form their own opinion of JetAI's value that differs from its market value or its book value, called intrinsic value, which is JetAI'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 JetAI's market value can be influenced by many factors that don't directly affect JetAI'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 JetAI's value and its price as these two are different measures arrived at by different means. Investors typically determine if JetAI is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JetAI'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.