Chromadex Corp Debt
| CDXC Stock | USD 7.44 0.19 2.49% |
Chromadex Corp holds a debt-to-equity ratio of 0.218. At present, Chromadex Corp's Net Debt To EBITDA is projected to slightly grow based on the last few years of reporting. The current year's Interest Debt Per Share is expected to grow to 0.02, whereas Short and Long Term Debt Total is forecasted to decline to about 1.7 M. With a high degree of financial leverage come high-interest payments, which usually reduce Chromadex Corp's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Chromadex Corp'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. Chromadex Corp'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 Chromadex Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Chromadex Corp's stakeholders.
For most companies, including Chromadex Corp, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Chromadex Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Chromadex Corp's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 16.6683 | Book Value 0.451 | Operating Margin 0.0626 | Profit Margin 0.0162 | Return On Assets 0.0051 |
Chromadex |
Chromadex Corp Bond Ratings
Chromadex Corp financial ratings play a critical role in determining how much Chromadex Corp 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 Chromadex Corp's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | 10.29 | Possible Manipulator | View |
Chromadex Corp Debt to Cash Allocation
As Chromadex Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Chromadex Corp'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.
Chromadex Corp currently holds 3.28 M in liabilities with Debt to Equity (D/E) ratio of 0.22, which may suggest the company is not taking enough advantage from borrowing. Chromadex Corp has a current ratio of 2.13, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Chromadex Corp's use of debt, we should always consider it together with its cash and equity.Chromadex Corp Total Assets Over Time
Chromadex Corp Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Chromadex Corp 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.Chromadex Corp Debt Ratio | 1.21 |
Chromadex Corp Corporate Bonds Issued
Most Chromadex bonds can be classified according to their maturity, which is the date when Chromadex Corp 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.
Chromadex Short Long Term Debt Total
Short Long Term Debt Total |
|
Understaning Chromadex Corp Use of Financial Leverage
Chromadex Corp's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Chromadex Corp's total debt position, including all outstanding debt obligations, and compares it with Chromadex Corp's equity. Financial leverage can amplify the potential profits to Chromadex Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Chromadex Corp is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 3.3 M | 1.7 M | |
| Net Debt | -23.9 M | -22.7 M | |
| Short Term Debt | 1.4 M | 1.5 M | |
| Long Term Debt | 356.6 K | 338.8 K | |
| Short and Long Term Debt | 581.5 K | 496.7 K | |
| Long Term Debt Total | 16.2 K | 15.4 K | |
| Net Debt To EBITDA | 6.18 | 6.48 | |
| Debt To Equity | 0.02 | 0.02 | |
| Interest Debt Per Share | 0.01 | 0.02 | |
| Debt To Assets | 0.01 | 0.01 | |
| Long Term Debt To Capitalization | 0.30 | 0.29 | |
| Total Debt To Capitalization | 0.02 | 0.02 | |
| Debt Equity Ratio | 0.02 | 0.02 | |
| Debt Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | 10.14 | 10.65 |
Also Currently Popular
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 Chromadex Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Chromadex Corp's 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 Chromadex Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Chromadex Corp Stock:Check out the analysis of Chromadex Corp Fundamentals Over Time. For information on how to trade Chromadex Stock refer to our How to Trade Chromadex Stock guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Life Sciences Tools & Services 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 Chromadex Corp. If investors know Chromadex 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 Chromadex Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.02 | Revenue Per Share 1.215 | Quarterly Revenue Growth 0.312 | Return On Assets 0.0051 | Return On Equity 0.0482 |
The market value of Chromadex Corp is measured differently than its book value, which is the value of Chromadex that is recorded on the company's balance sheet. Investors also form their own opinion of Chromadex Corp's value that differs from its market value or its book value, called intrinsic value, which is Chromadex Corp'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 Chromadex Corp's market value can be influenced by many factors that don't directly affect Chromadex Corp'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 Chromadex Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chromadex Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chromadex Corp'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.