Bit Origin 404280DR7 Bond

BTOG Stock  USD 1.41  0.05  3.68%   
At this time, Bit Origin's Total Debt To Capitalization is most likely to slightly decrease in the upcoming years. The Bit Origin's current Debt Ratio is estimated to increase to 0.26, while Net Debt is projected to decrease to roughly 1.8 M. . Bit Origin's financial risk is the risk to Bit Origin stockholders that is caused by an increase in debt.
 
Debt Ratio  
First Reported
2010-12-31
Previous Quarter
0.18
Current Value
0.26
Quarterly Volatility
0.13951523
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current Total Current Liabilities is estimated to decrease to about 2.2 M. The current Liabilities And Stockholders Equity is estimated to decrease to about 11.4 M
  
Check out the analysis of Bit Origin Fundamentals Over Time.
For more detail on how to invest in Bit Stock please use our How to Invest in Bit Origin guide.
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Given the importance of Bit Origin's capital structure, the first step in the capital decision process is for the management of Bit Origin 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 Bit Origin to issue bonds at a reasonable cost.
Popular NameBit Origin HSBC Holdings PLC
SpecializationFood, Beverage & Tobacco
Equity ISIN CodeKYG216211006
Bond Issue ISIN CodeUS404280DR76
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Bit Origin Outstanding Bond Obligations

Understaning Bit Origin Use of Financial Leverage

Bit Origin's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Bit Origin's total debt position, including all outstanding debt obligations, and compares it with Bit Origin's equity. Financial leverage can amplify the potential profits to Bit Origin's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Bit Origin is unable to cover its debt costs.
Last ReportedProjected for Next Year
Short and Long Term Debt Total1.9 M1.8 M
Net Debt1.9 M1.8 M
Short Term Debt1.4 M1.4 M
Long Term Debt437.7 K415.8 K
Short and Long Term Debt1.4 M1.4 M
Net Debt To EBITDA(0.10)(0.10)
Debt To Equity 0.23  0.22 
Interest Debt Per Share 0.80  0.76 
Debt To Assets 0.18  0.26 
Long Term Debt To Capitalization 0.05  0.10 
Total Debt To Capitalization 0.19  0.29 
Debt Equity Ratio 0.23  0.22 
Debt Ratio 0.18  0.26 
Cash Flow To Debt Ratio(3.75)(3.93)
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When determining whether Bit Origin is a strong investment it is important to analyze Bit Origin's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bit Origin's future performance. For an informed investment choice regarding Bit Stock, refer to the following important reports:
Check out the analysis of Bit Origin Fundamentals Over Time.
For more detail on how to invest in Bit Stock please use our How to Invest in Bit Origin guide.
You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Packaged Foods & Meats 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 Bit Origin. If investors know Bit 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 Bit Origin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(9.28)
Revenue Per Share
2.052
Quarterly Revenue Growth
0.402
Return On Assets
(0.35)
Return On Equity
(1.46)
The market value of Bit Origin is measured differently than its book value, which is the value of Bit that is recorded on the company's balance sheet. Investors also form their own opinion of Bit Origin's value that differs from its market value or its book value, called intrinsic value, which is Bit Origin's 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 Bit Origin's market value can be influenced by many factors that don't directly affect Bit Origin's 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 Bit Origin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bit Origin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bit Origin's 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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.