Atara Biotherapeutics Debt
| ATRA Stock | USD 12.26 0.14 1.16% |
Atara Biotherapeutics holds a debt-to-equity ratio of 0.29. At present, Atara Biotherapeutics' Net Debt is projected to decrease significantly based on the last few years of reporting. The current year's Long Term Debt is expected to grow to about 12.7 M, whereas Short and Long Term Debt is forecasted to decline to about 400 K. With a high degree of financial leverage come high-interest payments, which usually reduce Atara Biotherapeutics' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Atara Biotherapeutics' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Atara Biotherapeutics' 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 Atara Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Atara Biotherapeutics' stakeholders.
For most companies, including Atara Biotherapeutics, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Atara Biotherapeutics, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Atara Biotherapeutics' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.9674 | Book Value (23.30) | Operating Margin (0.62) | Profit Margin (2.90) | Return On Assets (0.57) |
Atara |
Atara Biotherapeutics Bond Ratings
Atara Biotherapeutics financial ratings play a critical role in determining how much Atara Biotherapeutics 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 Atara Biotherapeutics' borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (3.98) | Unlikely Manipulator | View |
Atara Biotherapeutics Debt to Cash Allocation
As Atara Biotherapeutics follows its natural business cycle, the capital allocation decisions will not magically go away. Atara Biotherapeutics' 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.
Atara Biotherapeutics currently holds 57.87 M in liabilities with Debt to Equity (D/E) ratio of 0.29, which may suggest the company is not taking enough advantage from borrowing. Atara Biotherapeutics has a current ratio of 5.17, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Atara Biotherapeutics' use of debt, we should always consider it together with its cash and equity.Atara Biotherapeutics Total Assets Over Time
Atara Biotherapeutics Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Atara Biotherapeutics' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Atara Biotherapeutics, which in turn will lower the firm's financial flexibility.Atara Biotherapeutics Corporate Bonds Issued
Most Atara bonds can be classified according to their maturity, which is the date when Atara Biotherapeutics 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.
Atara Net Debt
Net Debt |
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Understaning Atara Biotherapeutics Use of Financial Leverage
Atara Biotherapeutics' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Atara Biotherapeutics' total debt position, including all outstanding debt obligations, and compares it with Atara Biotherapeutics' equity. Financial leverage can amplify the potential profits to Atara Biotherapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Atara Biotherapeutics is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | 32 M | 33.6 M | |
| Long Term Debt | 12.1 M | 12.7 M | |
| Short and Long Term Debt Total | 57.9 M | 60.8 M | |
| Short and Long Term Debt | 450 K | 400 K | |
| Short Term Debt | 12.2 M | 12.8 M | |
| Long Term Debt Total | 219.6 K | 195.2 K | |
| Net Debt To EBITDA | (0.12) | (0.11) | |
| Interest Debt Per Share | 1.25 | 0.70 |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Atara Biotherapeutics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Atara Biotherapeutics' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Atara Biotherapeutics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Atara Biotherapeutics Stock:Check out the analysis of Atara Biotherapeutics Fundamentals Over Time. For information on how to trade Atara Stock refer to our How to Trade Atara Stock guide.You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Atara Biotherapeutics. If investors know Atara will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Atara Biotherapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (25.32) | Revenue Per Share 12.263 | Quarterly Revenue Growth 28.927 | Return On Assets (0.57) | Return On Equity (20.15) |
The market value of Atara Biotherapeutics is measured differently than its book value, which is the value of Atara that is recorded on the company's balance sheet. Investors also form their own opinion of Atara Biotherapeutics' value that differs from its market value or its book value, called intrinsic value, which is Atara Biotherapeutics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Atara Biotherapeutics' market value can be influenced by many factors that don't directly affect Atara Biotherapeutics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Atara Biotherapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Atara Biotherapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atara Biotherapeutics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
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.