Iiot Oxys Current Debt
| ITOX Stock | USD 0 0.0004 50.00% |
Iiot Oxys has over 267,152 in debt which may indicate that it relies heavily on debt financing. With a high degree of financial leverage come high-interest payments, which usually reduce Iiot Oxys' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Iiot Oxys' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Iiot Oxys' 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 Iiot Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Iiot Oxys' stakeholders.
For most companies, including Iiot Oxys, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Iiot Oxys, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Iiot Oxys' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Iiot Oxys' debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Iiot Oxys is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Iiot Oxys to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Iiot Oxys is said to be less leveraged. If creditors hold a majority of Iiot Oxys' assets, the Company is said to be highly leveraged.
Iiot |
Iiot Oxys Debt to Cash Allocation
Iiot Oxys currently holds 267.15 K in liabilities with Debt to Equity (D/E) ratio of 14.5, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Iiot Oxys has a current ratio of 0.06, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Iiot Oxys until it has trouble settling it off, either with new capital or with free cash flow. So, Iiot Oxys' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Iiot Oxys sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Iiot to invest in growth at high rates of return. When we think about Iiot Oxys' use of debt, we should always consider it together with cash and equity.Iiot Oxys Assets Financed by Debt
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 Iiot Oxys' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Iiot Oxys, which in turn will lower the firm's financial flexibility.Iiot Oxys Corporate Bonds Issued
Understaning Iiot Oxys Use of Financial Leverage
Understanding the structure of Iiot Oxys' debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Iiot Oxys' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
IIOT-OXYS, Inc. identifies, develops, and markets engineered products, software, and services for industrial Internet applications. The company develops hardware, software, and algorithms that monitor, measure, and predict conditions for energy, agricultural, structural, and medical applications. Iiot Oxys operates under Computer Hardware classification in the United States and is traded on OTC Exchange. It employs 1 people. Please read more on our technical analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Iiot Pink Sheet Analysis
When running Iiot Oxys' price analysis, check to measure Iiot Oxys' 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 Iiot Oxys is operating at the current time. Most of Iiot Oxys' value examination focuses on studying past and present price action to predict the probability of Iiot Oxys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Iiot Oxys' price. Additionally, you may evaluate how the addition of Iiot Oxys 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.