Denison Mines Debt
| DNN Stock | USD 2.32 0.07 2.93% |
Denison Mines Corp holds a debt-to-equity ratio of 0.001. At this time, Denison Mines' Short and Long Term Debt is very stable compared to the past year. As of the 26th of November 2024, Long Term Debt Total is likely to grow to about 434.7 K, though Net Debt is likely to grow to (124.5 M). With a high degree of financial leverage come high-interest payments, which usually reduce Denison Mines' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Denison Mines' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Denison Mines' 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 Denison Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Denison Mines' stakeholders.
For most companies, including Denison Mines, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Denison Mines Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Denison Mines' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 5.0993 | Book Value 0.655 | Operating Margin (22.70) | Return On Assets (0.06) | Return On Equity (0.05) |
Given that Denison Mines' 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 Denison Mines 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 Denison Mines to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Denison Mines is said to be less leveraged. If creditors hold a majority of Denison Mines' assets, the Company is said to be highly leveraged.
As of the 26th of November 2024, Non Current Liabilities Other is likely to grow to about 1.3 M, while Total Current Liabilities is likely to drop about 14.4 M. Denison |
Denison Mines Bond Ratings
Denison Mines Corp financial ratings play a critical role in determining how much Denison Mines 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 Denison Mines' borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (3.36) | Unlikely Manipulator | View |
Denison Mines Corp Debt to Cash Allocation
As Denison Mines Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Denison Mines' 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.
Denison Mines Corp has 417 K in debt with debt to equity (D/E) ratio of 0.0, which may show that the company is not taking advantage of profits from borrowing. Denison Mines Corp has a current ratio of 3.8, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Denison to invest in growth at high rates of return. Denison Mines Total Assets Over Time
Denison Mines Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Denison Mines 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.Denison Mines Debt Ratio | 0.017 |
Denison Mines Corporate Bonds Issued
Denison Net Debt
Understaning Denison Mines Use of Financial Leverage
Leverage ratios show Denison Mines' total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Denison Mines' financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Net Debt | -131.1 M | -124.5 M | |
| Short and Long Term Debt Total | 417 K | 396.1 K | |
| Long Term Debt | 112.5 K | 106.9 K | |
| Short and Long Term Debt | 248.4 K | 260.8 K | |
| Short Term Debt | 213 K | 202.3 K | |
| Long Term Debt Total | 414 K | 434.7 K | |
| Net Debt To EBITDA | (1.34) | (1.41) | |
| Cash Flow To Debt Ratio | (235.90) | (224.10) |
Check out the analysis of Denison Mines Fundamentals Over Time. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Oil, Gas & Consumable Fuels 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 Denison Mines. If investors know Denison 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 Denison Mines 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 0.004 | Quarterly Revenue Growth (0.11) | Return On Assets (0.06) | Return On Equity (0.05) |
The market value of Denison Mines Corp is measured differently than its book value, which is the value of Denison that is recorded on the company's balance sheet. Investors also form their own opinion of Denison Mines' value that differs from its market value or its book value, called intrinsic value, which is Denison Mines' 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 Denison Mines' market value can be influenced by many factors that don't directly affect Denison Mines' 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 Denison Mines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Denison Mines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Denison Mines' 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.