Visionary Education Current Debt

GV Stock  USD 1.40  0.05  3.70%   
Visionary Education holds a debt-to-equity ratio of 0.84. At this time, Visionary Education's Net Debt is fairly stable compared to the past year. Short and Long Term Debt Total is likely to climb to about 76.3 M in 2025, whereas Net Debt To EBITDA is likely to drop 1.05 in 2025. . Visionary Education's financial risk is the risk to Visionary Education stockholders that is caused by an increase in debt.
58.2%

Asset vs Debt

54.4%

Equity vs Debt

Visionary Education'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. Visionary Education'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 Visionary Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Visionary Education's stakeholders.
Cost Of RevenueEbitda
For most companies, including Visionary Education, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Visionary Education Technology, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Visionary Education'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
0.2975
Book Value
5.166
Operating Margin
(0.09)
Profit Margin
0.1091
Return On Assets
(0.02)
At this time, Visionary Education's Total Current Liabilities is fairly stable compared to the past year. Liabilities And Stockholders Equity is likely to climb to about 106.1 M in 2025, whereas Non Current Liabilities Total is likely to drop slightly above 473.5 K in 2025.
  
Check out the analysis of Visionary Education Fundamentals Over Time.

Visionary Education Financial Rating

Visionary Education Technology financial ratings play a critical role in determining how much Visionary Education 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 Visionary Education's borrowing costs.
Piotroski F Score
5
HealthyView
Beneish M Score
(2.37)
Unlikely ManipulatorView

Visionary Education Debt to Cash Allocation

Many companies such as Visionary Education, 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.
Cash24.57%100%
Visionary Education Technology reports 63.21 M of total liabilities with total debt to equity ratio (D/E) of 0.84, which is normal for its line of buisiness. Visionary Education has a current ratio of 2.09, indicating that it is in good position to pay out its debt commitments in time. Note however, debt could still be an excellent tool for Visionary to invest in growth at high rates of return.

Visionary Education Total Assets Over Time

5%

Visionary Education Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Visionary Education 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.

Visionary Education Debt Ratio

    
  21.0   
It appears most of the Visionary Education's assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Visionary Education's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Visionary Education, which in turn will lower the firm's financial flexibility.

Visionary Net Debt

Net Debt

75.57 Million

At this time, Visionary Education's Net Debt is fairly stable compared to the past year.

Understaning Visionary Education Use of Financial Leverage

Understanding the structure of Visionary Education's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Visionary Education's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
Last ReportedProjected for Next Year
Net Debt72 M75.6 M
Short and Long Term Debt Total72.7 M76.3 M
Short Term Debt72.4 M76 M
Long Term Debt227.2 K215.9 K
Short and Long Term Debt72.3 M76 M
Net Debt To EBITDA 1.10  1.05 
Debt To Equity 0.49  0.47 
Interest Debt Per Share 1.18  1.24 
Debt To Assets 0.26  0.21 
Long Term Debt To Capitalization 0.27  0.22 
Total Debt To Capitalization 0.33  0.29 
Debt Equity Ratio 0.49  0.47 
Debt Ratio 0.26  0.21 
Cash Flow To Debt Ratio 0.23  0.22 
Please read more on our technical analysis page.

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Additional Tools for Visionary Stock Analysis

When running Visionary Education's price analysis, check to measure Visionary Education's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visionary Education is operating at the current time. Most of Visionary Education's value examination focuses on studying past and present price action to predict the probability of Visionary Education's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Visionary Education's price. Additionally, you may evaluate how the addition of Visionary Education to your portfolios can decrease your overall portfolio volatility.

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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.
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