Phoenix New Debt
| FENG Stock | USD 1.76 0.02 1.12% |
Phoenix New Media holds a debt-to-equity ratio of 0.024. At this time, Phoenix New's Debt To Assets are most likely to slightly decrease in the upcoming years. The Phoenix New's current Total Debt To Capitalization is estimated to increase to 0.07, while Short Term Debt is projected to decrease to roughly 9.4 M. Phoenix New's financial risk is the risk to Phoenix New stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Phoenix New'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. Phoenix New'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 Phoenix Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Phoenix New's stakeholders.
For most companies, including Phoenix New, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Phoenix New Media, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Phoenix New's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
At this time, Phoenix New's Non Current Liabilities Other is most likely to increase significantly in the upcoming years. Check out the analysis of Phoenix New Financial Statements. Phoenix New Bond Ratings
Phoenix New Media financial ratings play a critical role in determining how much Phoenix New 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 Phoenix New's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (16.11) | Unlikely Manipulator | View |
Phoenix New Media Debt to Cash Allocation
Many companies such as Phoenix New, 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.
Phoenix New Media currently holds 56.67 M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the company is not taking enough advantage from borrowing. Phoenix New Media has a current ratio of 1.95, which is within standard range for the sector. Note, when we think about Phoenix New's use of debt, we should always consider it together with its cash and equity.Phoenix New Common Stock Shares Outstanding Over Time
Phoenix New Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Phoenix New 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.Phoenix New Debt Ratio | 5.42 |
Phoenix New Corporate Bonds Issued
Most Phoenix bonds can be classified according to their maturity, which is the date when Phoenix New Media 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.
Phoenix Net Debt
Net Debt |
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Understaning Phoenix New Use of Financial Leverage
Phoenix New's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Phoenix New's total debt position, including all outstanding debt obligations, and compares it with Phoenix New's equity. Financial leverage can amplify the potential profits to Phoenix New's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Phoenix New is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -633.5 M | -665.2 M | |
| Short Term Debt | 9.9 M | 9.4 M | |
| Short and Long Term Debt Total | 51 M | 48.5 M | |
| Net Debt To EBITDA | 11.48 | 12.05 | |
| Debt To Equity | 0.06 | 0.08 | |
| Interest Debt Per Share | 5.47 | 5.19 | |
| Debt To Assets | 0.04 | 0.05 | |
| Total Debt To Capitalization | 0.05 | 0.07 | |
| Debt Equity Ratio | 0.06 | 0.08 | |
| Debt Ratio | 0.04 | 0.05 | |
| Cash Flow To Debt Ratio | (0.90) | (0.94) |
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Check out the analysis of Phoenix New Financial Statements. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Can Interactive Media & Services industry sustain growth momentum? Does Phoenix have expansion opportunities? Factors like these will boost the valuation of Phoenix New. Market participants price Phoenix higher when confident in its future expansion prospects. Determining accurate worth demands scrutiny of both present operating results and projected expansion capacity. Evaluating Phoenix New demands reviewing these metrics collectively while recognizing certain factors exert disproportionate influence.
Quarterly Earnings Growth (0.86) | Earnings Share (0.56) | Revenue Per Share | Quarterly Revenue Growth 0.223 | Return On Assets |
Understanding Phoenix New Media requires distinguishing between market price and book value, where the latter reflects Phoenix's accounting equity. The concept of intrinsic value - what Phoenix New's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Market participants employ diverse analytical approaches to determine fair value and identify buying opportunities when prices dip below calculated worth. Market sentiment, economic cycles, and investor behavior can push Phoenix New's price substantially above or below its fundamental value.
Please note, there is a significant difference between Phoenix New's value and its price as these two are different measures arrived at by different means. Investors typically determine if Phoenix New is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. In contrast, Phoenix New's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
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.