Glimpse Group has $543,510 in liabilities and a Debt to Equity (D/E) ratio of 0.02, indicating that the company might not be leveraging borrowing as much as it could. The asset utilization ratio, which shows how effectively a company uses its assets to generate revenue, stands at 56.59% for Glimpse. This means the company earns $0.57 for every dollar of assets. A rising asset utilization ratio suggests that Glimpse Group is becoming more efficient in using its assets for daily operations.
Main Points
Trading Glimpse Group (NASDAQ: VRAR) from a leverage standpoint involves scrutinizing its debt management strategies, especially as the company navigates its financial landscape with a Net Debt of
1.3M. The company's Total Cash From Operating Activities shows a loss of
5.2M, which suggests a need for optimizing its debt strategy to enhance liquidity. With a Price Action Indicator of 0.82, investors should keep a close watch on how Glimpse Group might adjust its leverage ahead of upcoming announcements, potentially reshaping its financial stability and investment appeal.
Glimpse financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Glimpse, including all of Glimpse'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 Glimpse assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Glimpse 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.
Understanding Glimpse Total Liabilities
Glimpse Group liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Glimpse Group has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Glimpse balance sheet include debt obligations and money owed to different Glimpse vendors, workers, and loan providers. Below is the chart of Glimpse short long-term liabilities accounts currently reported on its balance sheet.
You can use Glimpse Group
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Glimpse's Liquidity
Glimpse
financial leverage refers to using borrowed capital as a funding source to finance Glimpse Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Glimpse 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 Glimpse's 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 Glimpse'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). Please check the
breakdown between Glimpse's total debt and its cash.
Breaking down Glimpse Indicators
The company reported the previous year's revenue of 8.8
M. Net Loss for the year was (6.39
M) with profit before overhead, payroll, taxes, and interest of 9.22
M.
Asset Breakdown
9 M
Non Current Assets Total
6.7 M
Total Current Assets
| Total Assets | 15.68 Million |
| Net Tangible Assets | (4.69 Million) |
| Non Current Assets Total | 8.95 Million |
| Other Current Assets | 653,362 |
| Total Current Assets | 6.73 Million |
| Non Currrent Assets Other | 69,078.3 |
| Other Assets | 61,363.35 |
| Intangible Assets | 463,474 |
Debt can be a double-edged sword, offering growth opportunities while posing risks if not managed wisely.
Glimpse Group, trading under NASDAQ: VRAR, is at a critical juncture with its debt strategy as it approaches its next announcement. With a current ratio of 4.33x, the company appears to have a strong liquidity position, suggesting it can comfortably meet its short-term obligations. However, with a net income loss of 6.4 million, optimizing its debt strategy could be crucial to improving financial health and investor confidence. As Glimpse Group navigates these financial waters, its ability to leverage its assets effectively while minimizing risks will be key to its future success..
Our perspective of the latest Glimpse spike
Glimpse Group's recent stock jump has piqued investor interest, with its mean deviation hitting 8.66, signaling notable price swings. This volatility suggests the market is responding to new developments or expectations about the company. For traders, these shifts can offer both opportunities and risks. While the chance for quick profits is tempting, it's important to stay cautious and understand what's driving the surge. A deep dive into the company's fundamentals and market standing is essential for navigating these changes wisely.
As of December 23rd, Glimpse shows a downside deviation of 6.74, a risk-adjusted performance of 0.1704, and a market risk-adjusted performance of -0.48. Evaluating technical indicators like the coefficient of variation and Treynor ratio can help determine if Glimpse's current price of $3.90 per share is justified. With a Jensen alpha of 3.36, it's advisable to review Glimpse Group's market performance to ensure its long-term viability.Considering the current landscape for Glimpse Group, it's clear that the company has potential for a rebound, particularly with an analyst consensus rating of "Strong Buy." The valuation real value of 4.04 suggests that the stock is trading at a reasonable level, offering a solid entry point for investors. With the highest estimated target price reaching 6.38, there's a promising upside that could attract those looking for growth opportunities. While investing always carries risks, the combination of favorable analyst sentiment and valuation metrics positions Glimpse Group as a compelling candidate for those willing to embrace a bit of volatility in pursuit of potential gains..
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Glimpse Group. Please refer to our
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