Uranium Royalty Debt
| UROY Stock | USD 2.39 0.10 4.02% |
Uranium Royalty Corp holds a debt-to-equity ratio of 0.094. At this time, Uranium Royalty's Long Term Debt is fairly stable compared to the past year. Debt To Assets is likely to rise to 0.1 in 2024, despite the fact that Net Debt is likely to grow to (19.9 M). With a high degree of financial leverage come high-interest payments, which usually reduce Uranium Royalty's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Uranium Royalty'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. Uranium Royalty'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 Uranium Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Uranium Royalty's stakeholders.
For most companies, including Uranium Royalty, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Uranium Royalty Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Uranium Royalty'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 1.4871 | Book Value 2.259 | Operating Margin 0.1616 | Profit Margin 0.2029 | Return On Assets 0.019 |
Given that Uranium Royalty'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 Uranium Royalty 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 Uranium Royalty to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Uranium Royalty is said to be less leveraged. If creditors hold a majority of Uranium Royalty's assets, the Company is said to be highly leveraged.
At this time, Uranium Royalty's Total Current Liabilities is fairly stable compared to the past year. Change To Liabilities is expected to grow at the current pace this year, whereas Liabilities And Stockholders Equity is likely to drop slightly above 152.9 M in 2024. Uranium |
Uranium Royalty Bond Ratings
Uranium Royalty Corp financial ratings play a critical role in determining how much Uranium Royalty 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 Uranium Royalty's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (0.54) | Possible Manipulator | View |
Uranium Royalty Corp Debt to Cash Allocation
As Uranium Royalty Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Uranium Royalty's 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.
Uranium Royalty Corp currently holds 193 K in liabilities with Debt to Equity (D/E) ratio of 0.09, which may suggest the company is not taking enough advantage from borrowing. Uranium Royalty Corp has a current ratio of 8.38, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Uranium Royalty's use of debt, we should always consider it together with its cash and equity.Uranium Royalty Total Assets Over Time
Uranium Royalty Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Uranium Royalty 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.Uranium Royalty Debt Ratio | 9.56 |
Uranium Royalty Corporate Bonds Issued
Uranium Net Debt
Understaning Uranium Royalty Use of Financial Leverage
Understanding the structure of Uranium Royalty's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Uranium Royalty's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
| Last Reported | Projected for Next Year | ||
| Net Debt | -20.9 M | -19.9 M | |
| Short and Long Term Debt Total | 193 K | 183.3 K | |
| Short and Long Term Debt | 36 K | 34.2 K | |
| Short Term Debt | 37 K | 35.1 K | |
| Long Term Debt | 14.9 M | 15.6 M | |
| Net Debt To EBITDA | (2.68) | (2.82) | |
| Debt To Equity | 0.06 | 0.06 | |
| Debt To Assets | 0.06 | 0.10 | |
| Long Term Debt To Capitalization | 0.07 | 0.07 | |
| Total Debt To Capitalization | 0.06 | 0.10 | |
| Debt Equity Ratio | 0.06 | 0.06 | |
| Debt Ratio | 0.06 | 0.10 | |
| Cash Flow To Debt Ratio | (1.18) | (1.24) |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Uranium Stock Analysis
When running Uranium Royalty's price analysis, check to measure Uranium Royalty'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 Uranium Royalty is operating at the current time. Most of Uranium Royalty's value examination focuses on studying past and present price action to predict the probability of Uranium Royalty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Uranium Royalty's price. Additionally, you may evaluate how the addition of Uranium Royalty 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.