Guardforce AI F1R15XK36 Bond
| GFAI Stock | USD 1.52 0.03 2.01% |
Guardforce AI holds a debt-to-equity ratio of 0.773. The Guardforce's current Net Debt To EBITDA is estimated to increase to 0.70, while Short and Long Term Debt Total is projected to decrease to under 5.7 M. With a high degree of financial leverage come high-interest payments, which usually reduce Guardforce's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Guardforce'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. Guardforce'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 Guardforce Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Guardforce's stakeholders.
For most companies, including Guardforce, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Guardforce AI Co, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Guardforce's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
The Guardforce's current Total Current Liabilities is estimated to increase to about 14.8 M, while Liabilities And Stockholders Equity is projected to decrease to under 44.6 M. Guardforce |
Given the importance of Guardforce's capital structure, the first step in the capital decision process is for the management of Guardforce 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 Guardforce AI Co to issue bonds at a reasonable cost.
| Popular Name | Guardforce BNP Paribas FRN |
| Specialization | Technology Hardware & Equipment |
| Equity ISIN Code | KYG4236L1124 |
| Bond Issue ISIN Code | USF1R15XK367 |
| S&P Rating | Others |
| Maturity Date | 31st of December 99 |
| Issuance Date | Others |
Guardforce AI Outstanding Bond Obligations
| MPLX LP 4125 | US55336VAK61 | Details | |
| MPLX LP 52 | US55336VAL45 | Details | |
| BNP Paribas FRN | USF1R15XK367 | Details | |
| MGM Resorts International | US552953CD18 | Details |
Understaning Guardforce Use of Financial Leverage
Understanding the composition and structure of Guardforce's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Guardforce's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 6 M | 5.7 M | |
| Net Debt | -12.2 M | -11.6 M | |
| Short Term Debt | 4.4 M | 4.2 M | |
| Long Term Debt | 40 K | 38 K | |
| Short and Long Term Debt | 3.2 M | 3.1 M | |
| Net Debt To EBITDA | 0.67 | 0.70 | |
| Debt To Equity | 0.30 | 0.29 | |
| Interest Debt Per Share | 1.28 | 1.22 | |
| Debt To Assets | 0.17 | 0.16 | |
| Total Debt To Capitalization | 0.24 | 0.23 | |
| Debt Equity Ratio | 0.30 | 0.29 | |
| Debt Ratio | 0.17 | 0.16 | |
| Cash Flow To Debt Ratio | (0.21) | (0.20) |
Currently Active Assets on Macroaxis
When determining whether Guardforce AI is a strong investment it is important to analyze Guardforce'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 Guardforce's future performance. For an informed investment choice regarding Guardforce Stock, refer to the following important reports:Check out the analysis of Guardforce Fundamentals Over Time. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Is Electronic Equipment, Instruments & 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 Guardforce. If investors know Guardforce 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 Guardforce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.36) | Revenue Per Share | Quarterly Revenue Growth (0.05) | Return On Assets | Return On Equity |
The market value of Guardforce AI is measured differently than its book value, which is the value of Guardforce that is recorded on the company's balance sheet. Investors also form their own opinion of Guardforce's value that differs from its market value or its book value, called intrinsic value, which is Guardforce'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 Guardforce's market value can be influenced by many factors that don't directly affect Guardforce'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 Guardforce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guardforce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guardforce'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.