Valuence Merger Debt
| VMCA Stock | USD 11.52 0.00 0.00% |
At present, Valuence Merger's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 1.7 M, whereas Short and Long Term Debt is forecasted to decline to about 1.4 M. With a high degree of financial leverage come high-interest payments, which usually reduce Valuence Merger's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.0371 | Current Value 0.0353 | Quarterly Volatility 0.18102361 |
Valuence |
Valuence Merger Bond Ratings
Valuence Merger Corp financial ratings play a critical role in determining how much Valuence Merger 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 Valuence Merger's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (5.02) | Unlikely Manipulator | View |
Valuence Merger Corp Debt to Cash Allocation
As Valuence Merger Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Valuence Merger'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.
Valuence Merger Corp currently holds 2.26 M in liabilities. Valuence Merger Corp has a current ratio of 0.28, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Valuence Merger's use of debt, we should always consider it together with its cash and equity.Valuence Merger Total Assets Over Time
Valuence Merger Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Valuence Merger 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.Valuence Merger Debt Ratio | 3.53 |
Valuence Merger Corporate Bonds Issued
Most Valuence bonds can be classified according to their maturity, which is the date when Valuence Merger Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Valuence Short Long Term Debt Total
Short Long Term Debt Total |
|
Understaning Valuence Merger Use of Financial Leverage
Valuence Merger's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Valuence Merger's total debt position, including all outstanding debt obligations, and compares it with Valuence Merger's equity. Financial leverage can amplify the potential profits to Valuence Merger's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Valuence Merger is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 2.3 M | 2.4 M | |
| Net Debt | 1.6 M | 1.7 M | |
| Short and Long Term Debt | 2.6 M | 1.4 M | |
| Short Term Debt | 2.3 M | 2.4 M | |
| Net Debt To EBITDA | 0.33 | 0.35 | |
| Debt To Equity | 0.05 | 0.04 | |
| Interest Debt Per Share | 0.11 | 0.12 | |
| Debt To Assets | 0.04 | 0.04 | |
| Total Debt To Capitalization | 0.04 | 0.04 | |
| Debt Equity Ratio | 0.05 | 0.04 | |
| Debt Ratio | 0.04 | 0.04 | |
| Cash Flow To Debt Ratio | (0.36) | (0.34) |
Also Currently Popular
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.When determining whether Valuence Merger Corp is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Valuence Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Valuence Merger Corp Stock. Highlighted below are key reports to facilitate an investment decision about Valuence Merger Corp Stock:Check out the analysis of Valuence Merger Fundamentals Over Time. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Asset Management & Custody Banks 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 Valuence Merger. If investors know Valuence 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 Valuence Merger listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.77) | Earnings Share 0.15 | Return On Assets (0.02) |
The market value of Valuence Merger Corp is measured differently than its book value, which is the value of Valuence that is recorded on the company's balance sheet. Investors also form their own opinion of Valuence Merger's value that differs from its market value or its book value, called intrinsic value, which is Valuence Merger'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 Valuence Merger's market value can be influenced by many factors that don't directly affect Valuence Merger'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 Valuence Merger's value and its price as these two are different measures arrived at by different means. Investors typically determine if Valuence Merger is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Valuence Merger'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.