LifeMD Preferred Series 552953CD1 Bond
| LFMDP Preferred Stock | USD 22.51 0.07 0.31% |
LifeMD Preferred Series holds a debt-to-equity ratio of 0.456. . LifeMD Preferred's financial risk is the risk to LifeMD Preferred stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
LifeMD Preferred'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. LifeMD Preferred'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 LifeMD Preferred Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect LifeMD Preferred's stakeholders.
For most companies, including LifeMD Preferred, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for LifeMD Preferred Series, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, LifeMD Preferred's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
LifeMD |
Given the importance of LifeMD Preferred's capital structure, the first step in the capital decision process is for the management of LifeMD Preferred to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of LifeMD Preferred Series to issue bonds at a reasonable cost.
| Popular Name | LifeMD Preferred MGM Resorts International |
| Specialization | Health Information Services |
| Equity ISIN Code | US53216B2034 |
| Bond Issue ISIN Code | US552953CD18 |
| S&P Rating | Others |
| Maturity Date | 1st of September 2026 |
| Issuance Date | 19th of August 2016 |
| Coupon | 4.625 % |
LifeMD Preferred Series Outstanding Bond Obligations
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Understaning LifeMD Preferred Use of Financial Leverage
LifeMD Preferred's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to LifeMD Preferred's current equity. If creditors own a majority of LifeMD Preferred's assets, the company is considered highly leveraged. Understanding the composition and structure of LifeMD Preferred's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for care across various indications, including concierge care, mens sexual health, dermatology, and others in the United States. LifeMD, Inc. was founded in 1994 and is headquartered in New York, New York. Lifemd Inc operates under Pharmaceutical Retailers classification in the United States and is traded on NASDAQ Exchange. It employs 196 people. Please read more on our technical analysis page.
Pair Trading with LifeMD Preferred
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 LifeMD Preferred 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 LifeMD Preferred will appreciate offsetting losses from the drop in the long position's value.Moving against LifeMD Preferred Stock
| 0.64 | GEHC | GE HealthCare Techno | PairCorr |
| 0.61 | GDRX | Goodrx Holdings | PairCorr |
| 0.55 | TXG | 10X Genomics | PairCorr |
| 0.48 | KDLYW | Kindly MD, Warrants | PairCorr |
| 0.4 | NRC | National Research Corp | PairCorr |
The ability to find closely correlated positions to LifeMD Preferred could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LifeMD Preferred 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 LifeMD Preferred - 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 LifeMD Preferred Series to buy it.
The correlation of LifeMD Preferred 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 LifeMD Preferred moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LifeMD Preferred Series 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 LifeMD Preferred 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.Additional Tools for LifeMD Preferred Stock Analysis
When running LifeMD Preferred's price analysis, check to measure LifeMD Preferred'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 LifeMD Preferred is operating at the current time. Most of LifeMD Preferred's value examination focuses on studying past and present price action to predict the probability of LifeMD Preferred's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LifeMD Preferred's price. Additionally, you may evaluate how the addition of LifeMD Preferred 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.