Eos Energy Debt
| EOSE Stock | USD 2.72 0.21 8.37% |
Eos Energy Enterprises has over 208.89 Million in debt which may indicate that it relies heavily on debt financing. At present, Eos Energy's Debt To Assets are projected to increase slightly based on the last few years of reporting. The current year's Total Debt To Capitalization is expected to grow to 2.30, whereas Short and Long Term Debt is forecasted to decline to about 3.2 M. . Eos Energy's financial risk is the risk to Eos Energy stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Eos Energy'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. Eos Energy'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 Eos Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Eos Energy's stakeholders.
For most companies, including Eos Energy, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Eos Energy Enterprises, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Eos Energy'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 2.3492 | Book Value (2.64) | Operating Margin (58.70) | Return On Assets (0.55) | Return On Equity (28.16) |
Eos |
Eos Energy Bond Ratings
Eos Energy Enterprises financial ratings play a critical role in determining how much Eos Energy 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 Eos Energy's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (2.91) | Unlikely Manipulator | View |
Eos Energy Enterprises Debt to Cash Allocation
Many companies such as Eos Energy, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Eos Energy Enterprises currently holds 208.89 M in liabilities with Debt to Equity (D/E) ratio of 3.5, implying the company greatly relies on financing operations through barrowing. Eos Energy Enterprises has a current ratio of 0.99, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Eos Energy's use of debt, we should always consider it together with its cash and equity.Eos Energy Other Current Liab Over Time
Eos Energy Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Eos Energy 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.Eos Energy Debt Ratio | 174.0 |
Eos Energy Corporate Bonds Issued
Most Eos bonds can be classified according to their maturity, which is the date when Eos Energy Enterprises 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.
Eos Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Eos Energy Use of Financial Leverage
Eos Energy's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Eos Energy's total debt position, including all outstanding debt obligations, and compares it with Eos Energy's equity. Financial leverage can amplify the potential profits to Eos Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Eos Energy is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 208.9 M | 127.9 M | |
| Net Debt | 139.4 M | 146.4 M | |
| Short and Long Term Debt | 3.3 M | 3.2 M | |
| Short Term Debt | 4.8 M | 4.6 M | |
| Long Term Debt | 200.5 M | 103.3 M | |
| Long Term Debt Total | 5.4 M | 2.8 M | |
| Net Debt To EBITDA | (0.86) | (0.82) | |
| Debt To Equity | (1.84) | (1.75) | |
| Interest Debt Per Share | 2.05 | 1.34 | |
| Debt To Assets | 1.09 | 1.74 | |
| Long Term Debt To Capitalization | 2.23 | 1.50 | |
| Total Debt To Capitalization | 2.19 | 2.30 | |
| Debt Equity Ratio | (1.84) | (1.75) | |
| Debt Ratio | 1.09 | 1.74 | |
| Cash Flow To Debt Ratio | (0.71) | (0.75) |
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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 Eos Energy Enterprises is a strong investment it is important to analyze Eos Energy'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 Eos Energy's future performance. For an informed investment choice regarding Eos Stock, refer to the following important reports:Check out the analysis of Eos Energy Fundamentals Over Time. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Is Industrial Machinery & Supplies & Components 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 Eos Energy. If investors know Eos 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 Eos Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.46) | Revenue Per Share 0.075 | Quarterly Revenue Growth 0.249 | Return On Assets (0.55) | Return On Equity (28.16) |
The market value of Eos Energy Enterprises is measured differently than its book value, which is the value of Eos that is recorded on the company's balance sheet. Investors also form their own opinion of Eos Energy's value that differs from its market value or its book value, called intrinsic value, which is Eos Energy'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 Eos Energy's market value can be influenced by many factors that don't directly affect Eos Energy'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 Eos Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eos Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eos Energy'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.