Agora Debt
| API Stock | USD 4.60 0.03 0.65% |
Agora Inc holds a debt-to-equity ratio of 0.006. As of now, Agora's Interest Debt Per Share is increasing as compared to previous years. The Agora's current Debt To Assets is estimated to increase to 0.07, while Short Term Debt is projected to decrease to under 1.5 M. With a high degree of financial leverage come high-interest payments, which usually reduce Agora's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Agora'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. Agora'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 Agora Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Agora's stakeholders.
For most companies, including Agora, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Agora Inc, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Agora's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
The Agora's current Non Current Liabilities Total is estimated to increase to about 82.9 M, while Total Current Liabilities is projected to decrease to under 51.3 M. Check out the analysis of Agora Financial Statements. Agora Bond Ratings
Agora Inc financial ratings play a critical role in determining how much Agora 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 Agora's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.67) | Unlikely Manipulator | View |
Agora Inc Debt to Cash Allocation
As Agora Inc follows its natural business cycle, the capital allocation decisions will not magically go away. Agora'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.
Agora Inc has 50.14 M in debt with debt to equity (D/E) ratio of 0.01, which may show that the company is not taking advantage of profits from borrowing. Agora Inc has a current ratio of 9.64, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Nevertheless, prudent borrowing could serve as an effective mechanism for Agora to finance growth opportunities yielding strong returns. Agora Total Assets Over Time
Agora Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Agora 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.Agora Debt Ratio | 6.77 |
Agora Corporate Bonds Issued
Most Agora bonds can be classified according to their maturity, which is the date when Agora Inc 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.
Agora Net Debt
Net Debt |
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Understaning Agora Use of Financial Leverage
Understanding the composition and structure of Agora's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Agora'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).
| Last Reported | Projected for Next Year | ||
| Net Debt | 26.5 M | 27.8 M | |
| Short Term Debt | 1.6 M | 1.5 M | |
| Short and Long Term Debt Total | 57.7 M | 60.5 M | |
| Long Term Debt | 53.4 M | 31.6 M | |
| Net Debt To EBITDA | (0.67) | (0.63) | |
| Debt To Equity | 0.08 | 0.08 | |
| Interest Debt Per Share | 0.49 | 0.51 | |
| Debt To Assets | 0.06 | 0.07 | |
| Long Term Debt To Capitalization | 0.07 | 0.04 | |
| Total Debt To Capitalization | 0.07 | 0.08 | |
| Debt Equity Ratio | 0.08 | 0.08 | |
| Debt Ratio | 0.06 | 0.07 | |
| Cash Flow To Debt Ratio | (0.25) | (0.27) |
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Check out the analysis of Agora Financial Statements. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is there potential for Application Software market expansion? Will Agora introduce new products? Factors like these will boost the valuation of Agora. If investors know Agora will grow in the future, the company's valuation will be higher. Understanding fair value requires weighing current performance against future potential. All the valuation information about Agora listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.07 | Revenue Per Share | Quarterly Revenue Growth 0.12 | Return On Assets | Return On Equity |
The market value of Agora Inc is measured differently than its book value, which is the value of Agora that is recorded on the company's balance sheet. Investors also form their own opinion of Agora's value that differs from its market value or its book value, called intrinsic value, which is Agora's true underlying value. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. Because Agora's market value can be influenced by many factors that don't directly affect Agora's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Understanding that Agora's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Agora represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Meanwhile, Agora's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.
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.