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.
Asset vs Debt
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.
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.
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. Visionary |
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 | Healthy | View |
Beneish M Score | (2.37) | Unlikely Manipulator | View |
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.
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
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 |
Visionary Net Debt
Net Debt |
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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 Reported | Projected for Next Year | ||
Net Debt | 72 M | 75.6 M | |
Short and Long Term Debt Total | 72.7 M | 76.3 M | |
Short Term Debt | 72.4 M | 76 M | |
Long Term Debt | 227.2 K | 215.9 K | |
Short and Long Term Debt | 72.3 M | 76 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 |
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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.