Applied Therapeutics Debt
| APLT Stock | USD 8.57 1.64 16.06% |
Applied Therapeutics holds a debt-to-equity ratio of 0.139. At this time, Applied Therapeutics' Long Term Debt is comparatively stable compared to the past year. Short and Long Term Debt is likely to gain to about 512.4 K in 2024, despite the fact that Debt To Equity is likely to grow to (0.02). . Applied Therapeutics' financial risk is the risk to Applied Therapeutics stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Applied Therapeutics' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Applied Therapeutics' 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 Applied Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Applied Therapeutics' stakeholders.
For most companies, including Applied Therapeutics, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Applied Therapeutics, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Applied Therapeutics' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 201.6293 | Book Value 0.051 | Operating Margin (243.80) | Return On Assets (0.76) | Return On Equity (4.73) |
Given that Applied Therapeutics' debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Applied Therapeutics is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Applied Therapeutics to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Applied Therapeutics is said to be less leveraged. If creditors hold a majority of Applied Therapeutics' assets, the Company is said to be highly leveraged.
At this time, Applied Therapeutics' Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 56.5 M in 2024, whereas Non Current Liabilities Other is likely to drop slightly above 681.3 K in 2024. Applied |
Applied Therapeutics Debt to Cash Allocation
Applied Therapeutics currently holds 777 K in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest the company is not taking enough advantage from borrowing. Applied Therapeutics has a current ratio of 1.46, which is within standard range for the sector. Note, when we think about Applied Therapeutics' use of debt, we should always consider it together with its cash and equity.Applied Therapeutics Total Assets Over Time
Applied Therapeutics Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Applied Therapeutics 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.Applied Therapeutics Debt Ratio | 0.74 |
Applied Therapeutics Corporate Bonds Issued
Applied Net Debt
Net Debt |
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Understaning Applied Therapeutics Use of Financial Leverage
Applied Therapeutics' financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Applied Therapeutics' current equity. If creditors own a majority of Applied Therapeutics' assets, the company is considered highly leveraged. Understanding the composition and structure of Applied Therapeutics' outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Net Debt | -49.1 M | -46.7 M | |
| Long Term Debt | 533.6 K | 560.3 K | |
| Short and Long Term Debt | 310 K | 512.4 K | |
| Short Term Debt | 858 K | 607.2 K | |
| Short and Long Term Debt Total | 777 K | 1.1 M | |
| Net Debt To EBITDA | 0.76 | 0.80 | |
| Debt To Equity | (0.03) | (0.02) | |
| Debt To Assets | 0.01 | 0.01 | |
| Long Term Debt To Capitalization | 0.08 | 0.09 | |
| Total Debt To Capitalization | (0.03) | (0.02) | |
| Debt Equity Ratio | (0.03) | (0.02) | |
| Debt Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | (128.61) | (135.04) |
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Additional Tools for Applied Stock Analysis
When running Applied Therapeutics' price analysis, check to measure Applied Therapeutics' 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 Applied Therapeutics is operating at the current time. Most of Applied Therapeutics' value examination focuses on studying past and present price action to predict the probability of Applied Therapeutics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Therapeutics' price. Additionally, you may evaluate how the addition of Applied Therapeutics 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.