Fusion Fuel Debt
| HTOO Stock | USD 3.41 0.04 1.16% |
Fusion Fuel Green holds a debt-to-equity ratio of 0.016. At this time, Fusion Fuel's Short and Long Term Debt Total is very stable compared to the past year. As of the 31st of January 2026, Net Debt is likely to grow to about 2.4 M, while Short and Long Term Debt is likely to drop about 1.8 M. With a high degree of financial leverage come high-interest payments, which usually reduce Fusion Fuel's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Fusion Fuel'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. Fusion Fuel'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 Fusion Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Fusion Fuel's stakeholders.
For most companies, including Fusion Fuel, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Fusion Fuel Green, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Fusion Fuel'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, Fusion Fuel's Total Current Liabilities is very stable compared to the past year. As of the 31st of January 2026, Liabilities And Stockholders Equity is likely to grow to about 43.6 M, while Non Current Liabilities Other is likely to drop (945.00). Check out the analysis of Fusion Fuel Financial Statements. Fusion Fuel Bond Ratings
Fusion Fuel Green financial ratings play a critical role in determining how much Fusion Fuel 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 Fusion Fuel's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.34) | Unlikely Manipulator | View |
Fusion Fuel Green Debt to Cash Allocation
As Fusion Fuel Green follows its natural business cycle, the capital allocation decisions will not magically go away. Fusion Fuel's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Fusion Fuel Green currently holds 2.23 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. Fusion Fuel Green has a current ratio of 2.4, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Fusion Fuel's use of debt, we should always consider it together with its cash and equity.Fusion Fuel Total Assets Over Time
Fusion Fuel Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Fusion Fuel 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.Fusion Fuel Debt Ratio | 8.67 |
Fusion Fuel Corporate Bonds Issued
Fusion Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Fusion Fuel Use of Financial Leverage
Leverage ratios show Fusion Fuel's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Fusion Fuel's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 2.6 M | 4.3 M | |
| Net Debt | 2.3 M | 2.4 M | |
| Short Term Debt | 2.4 M | 2.5 M | |
| Short and Long Term Debt | 2.3 M | 1.8 M | |
| Net Debt To EBITDA | (0.22) | (0.21) | |
| Debt To Equity | 0.20 | 0.19 | |
| Interest Debt Per Share | 0.13 | 0.23 | |
| Debt To Assets | 0.09 | 0.09 | |
| Long Term Debt To Capitalization | 0.90 | 0.80 | |
| Total Debt To Capitalization | 0.17 | 0.16 | |
| Debt Equity Ratio | 0.20 | 0.19 | |
| Debt Ratio | 0.09 | 0.09 | |
| Cash Flow To Debt Ratio | (3.34) | (3.51) |
Pair Trading with Fusion Fuel
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fusion Fuel position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fusion Fuel will appreciate offsetting losses from the drop in the long position's value.Moving against Fusion Stock
The ability to find closely correlated positions to Fusion Fuel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fusion Fuel when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fusion Fuel - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fusion Fuel Green to buy it.
The correlation of Fusion Fuel is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fusion Fuel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fusion Fuel Green moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fusion Fuel can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out the analysis of Fusion Fuel Financial Statements. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Will Electric Utilities sector continue expanding? Could Fusion diversify its offerings? Factors like these will boost the valuation of Fusion Fuel. Market participants price Fusion higher when confident in its future expansion prospects. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Fusion Fuel data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Earnings Share (15.42) | Revenue Per Share | Quarterly Revenue Growth (0.61) | Return On Assets | Return On Equity |
Investors evaluate Fusion Fuel Green using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Fusion Fuel's intrinsic value—the estimated true worth—helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Fusion Fuel's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Fusion Fuel's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fusion Fuel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Fusion Fuel's market price signifies the transaction level at which participants voluntarily complete trades.
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.