Asset Breakdown
21.4 M
Assets Non Current
82.8 M
Current Assets
| Total Assets | 104.19 Million | |
| Current Assets | 82.83 Million | |
| Assets Non Current | 21.36 Million |
Is Harpoon Therapeutics (USA Stocks:HARP) outlook still optimistic based on the latest debt level?
 | By Rifka Kats | Macroaxis Story |
The healthcare sector is always a hotbed of innovation and Harpoon Therapeutics (NASDAQ: HARP), a leading player in the biotechnology industry, is no exception. With a total revenue of $37.3M and cash reserves of $51.6M, Harpoon seems well-equipped to navigate the complex waters of biotech. However, a closer look at the numbers reveals a more complex picture. The company has seen a change in working capital of -$42.3M and has an operating income loss of $37.4M. Furthermore, the company's retained earnings stand at a loss of $352.5M. As the company navigates its financial course, the question remains: is Harpoon Therapeutics poised for continued profitability? The forthcoming quarterly report for Harpoon Therapeutics is anticipated on March 25, 2024. Currently, the stock is witnessing trading activities that are above average. At present, Harpoon Therapeutics' Property, Plant, and Equipment (PP&E) Turnover remains relatively stable compared to the previous year. As of December 1, 2024, the Cash and Equivalents Turnover is projected to increase to 0.65, while Earnings Before Tax are expected to decrease to -$65.8 million. Given the widespread interest in the biotechnology sector, it's appropriate to consider Harpoon Therapeutics as a distinctive alternative. Let's delve into whether Harpoon Therapeutics' shares are reasonably priced as we approach February.
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Reviewed by Gabriel Shpitalnik
Harpoon Therapeutics currently has 16.01 million in liabilities, with a Debt to Equity (D/E) ratio of 0.43. This ratio is approximately average when compared to similar companies. The asset utilization indicator is a measure of the revenue generated for every dollar of assets reported by a company. Harpoon Therapeutics has an asset utilization ratio of 50.65 percent, which suggests that the company generates $0.51 for each dollar of assets. An increasing asset utilization ratio indicates that Harpoon Therapeutics is becoming more efficient in using each dollar of assets for its daily operations.
Important Points
Harpoon Therapeutics (NASDAQ: HARP) presents an interesting opportunity for investors seeking leverage. With a high Coefficient of Variation at 421.45 and a significant Maximum Drawdown of 111.94, the stock exhibits substantial volatility, which could offer considerable potential for profit if well-managed. However, investors should be aware of the inherent risks, as the company reported a loss of 2.3M in Other Liabilities, which could impact future profitability. Harpoon Therapeutics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Harpoon Therapeutics, including all of Harpoon Therapeutics's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Harpoon Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Harpoon Therapeutics debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.Watch out for price decline
Please consider monitoring Harpoon Therapeutics on a daily basis if you are holding a position in it. Harpoon Therapeutics is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Harpoon Therapeutics stock to be traded above the $1 level to remain listed. If Harpoon Therapeutics stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Harpoon Therapeutics's Liquidity
Harpoon Therapeutics financial leverage refers to using borrowed capital as a funding source to finance Harpoon Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Harpoon Therapeutics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Harpoon Therapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Harpoon Therapeutics' 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). Please check the breakdown between Harpoon Therapeutics's total debt and its cash.
A Deeper Perspective
Harpoon Therapeutics reported the previous year's revenue of 37.34 M. Net Loss for the year was (30.5 M) with loss before overhead, payroll, taxes, and interest of (49.48 M).
Every cloud has a silver lining, and this might be the case for Harpoon Therapeutics (NASDAQ: HARP). Despite a net income loss of $30.5M and operating income loss of $37.4M, the biotechnology firm maintains a strong cash position with $51.6M in cash and short-term investments of $53.1M.This liquidity, coupled with a low short-term debt of $2.4M, suggests that Harpoon Therapeutics can manage its capital lease obligations of $16M and total current liabilities of $52.4M. However, the company's high beta of 2.09 indicates that it is more volatile than the market, which could be a concern for risk-averse investors. Furthermore, the probability of bankruptcy stands at 12.82%, which is relatively high. Therefore, while Harpoon Therapeutics has potential, investors should proceed with caution due to its financial volatility and risk profile. .
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