Guardant Health 401378AB0 Bond
| GH Stock | USD 32.65 1.67 5.39% |
Guardant Health has over 1.35 Billion in debt which may indicate that it relies heavily on debt financing. As of now, Guardant Health's Interest Debt Per Share is increasing as compared to previous years. With a high degree of financial leverage come high-interest payments, which usually reduce Guardant Health's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Guardant Health'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. Guardant Health'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 Guardant Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Guardant Health's stakeholders.
For most companies, including Guardant Health, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Guardant Health, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Guardant Health'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 55.6696 | Book Value (0.49) | Operating Margin (0.61) | Profit Margin (0.74) | Return On Assets (0.16) |
Guardant |
Given the importance of Guardant Health's capital structure, the first step in the capital decision process is for the management of Guardant Health 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 Guardant Health to issue bonds at a reasonable cost.
| Popular Name | Guardant Health US401378AB01 |
| Specialization | Health Care Equipment & Services |
| Equity ISIN Code | US40131M1099 |
| Bond Issue ISIN Code | US401378AB01 |
| S&P Rating | Others |
| Maturity Date | Others |
| Issuance Date | Others |
Guardant Health Outstanding Bond Obligations
| Boeing Co 2196 | US097023DG73 | Details | |
| HSBC Holdings PLC | US404280DR76 | Details | |
| US40139LAG86 | US40139LAG86 | Details | |
| GUARDN 3246 29 MAR 27 | US40139LBF94 | Details | |
| GUARDN 555 28 OCT 27 | US40139LBG77 | Details | |
| US40139LBC63 | US40139LBC63 | Details | |
| GUARDN 125 13 MAY 26 | US40139LBD47 | Details | |
| GUARDN 1625 16 SEP 28 | US40139LBE20 | Details | |
| MGM Resorts International | US552953CD18 | Details | |
| US401378AD66 | US401378AD66 | Details | |
| US401378AC83 | US401378AC83 | Details | |
| US401378AB01 | US401378AB01 | Details |
Understaning Guardant Health Use of Financial Leverage
Understanding the composition and structure of Guardant Health'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 Guardant Health'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 | 1.4 B | 685.2 M | |
| Net Debt | 220.2 M | 274 M | |
| Long Term Debt | 1.1 B | 776.5 M | |
| Long Term Debt Total | 1.3 B | 1.4 B | |
| Short and Long Term Debt | 593.1 K | 563.4 K | |
| Short Term Debt | 27.9 M | 29.3 M | |
| Net Debt To EBITDA | (0.51) | (0.48) | |
| Debt To Equity | 7.18 | 4.58 | |
| Interest Debt Per Share | 10.20 | 10.71 | |
| Debt To Assets | 0.64 | 0.38 | |
| Long Term Debt To Capitalization | 0.88 | 0.48 | |
| Total Debt To Capitalization | 0.88 | 0.48 | |
| Debt Equity Ratio | 7.18 | 4.58 | |
| Debt Ratio | 0.64 | 0.38 | |
| Cash Flow To Debt Ratio | (0.29) | (0.30) |
Currently Active Assets on Macroaxis
Check out the analysis of Guardant Health Fundamentals Over Time. For more detail on how to invest in Guardant Stock please use our How to Invest in Guardant Health guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Health Care Providers & 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 Guardant Health. If investors know Guardant 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 Guardant Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (4.28) | Revenue Per Share 5.7 | Quarterly Revenue Growth 0.339 | Return On Assets (0.16) | Return On Equity (6.09) |
The market value of Guardant Health is measured differently than its book value, which is the value of Guardant that is recorded on the company's balance sheet. Investors also form their own opinion of Guardant Health's value that differs from its market value or its book value, called intrinsic value, which is Guardant Health'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 Guardant Health's market value can be influenced by many factors that don't directly affect Guardant Health'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 Guardant Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guardant Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guardant Health'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.