Adacel Tech 55336VAK6 Bond
ADA Stock | 0.45 0.02 4.65% |
At this time, Adacel Tech's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 9.7 M in 2024, whereas Long Term Debt Total is likely to drop slightly above 2.8 M in 2024. . Adacel Tech's financial risk is the risk to Adacel Tech stockholders that is caused by an increase in debt.
At this time, Adacel Tech's Liabilities And Stockholders Equity is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 5.3 M in 2024, whereas Total Current Liabilities is likely to drop slightly above 11.8 M in 2024. Adacel |
Given the importance of Adacel Tech's capital structure, the first step in the capital decision process is for the management of Adacel Tech 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 Adacel Tech to issue bonds at a reasonable cost.
Popular Name | Adacel Tech MPLX LP 4125 |
Specialization | Software - Application |
Equity ISIN Code | AU000000ADA7 |
Bond Issue ISIN Code | US55336VAK61 |
S&P Rating | Others |
Maturity Date | 1st of March 2027 |
Issuance Date | 10th of February 2017 |
Coupon | 4.125 % |
Adacel Tech Outstanding Bond Obligations
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Understaning Adacel Tech Use of Financial Leverage
Adacel Tech's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Adacel Tech's current equity. If creditors own a majority of Adacel Tech's assets, the company is considered highly leveraged. Understanding the composition and structure of Adacel Tech's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Last Reported | Projected for Next Year | ||
Short and Long Term Debt Total | 10.8 M | 11.4 M | |
Net Debt | 9.3 M | 9.7 M | |
Short Term Debt | 6.6 M | 7 M | |
Short and Long Term Debt | 6 M | 6.3 M | |
Long Term Debt Total | 3.2 M | 2.8 M |
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Additional Tools for Adacel Stock Analysis
When running Adacel Tech's price analysis, check to measure Adacel Tech'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 Adacel Tech is operating at the current time. Most of Adacel Tech's value examination focuses on studying past and present price action to predict the probability of Adacel Tech's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Adacel Tech's price. Additionally, you may evaluate how the addition of Adacel Tech 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.