Kaleido Biosciences Boeing Bond
| KLDODelisted Stock | USD 0.01 0.00 0.00% |
Kaleido Biosciences holds a debt-to-equity ratio of 2.045. With a high degree of financial leverage come high-interest payments, which usually reduce Kaleido Biosciences' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Kaleido Biosciences' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Kaleido Biosciences' 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 Kaleido Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Kaleido Biosciences' stakeholders.
For most companies, including Kaleido Biosciences, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Kaleido Biosciences, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Kaleido Biosciences' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Kaleido |
Given the importance of Kaleido Biosciences' capital structure, the first step in the capital decision process is for the management of Kaleido Biosciences 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 Kaleido Biosciences to issue bonds at a reasonable cost.
| Popular Name | Kaleido Biosciences Boeing Co 2196 |
| Specialization | Biotechnology |
| Equity ISIN Code | US4833471000 |
| Bond Issue ISIN Code | US097023DG73 |
| S&P Rating | Others |
| Maturity Date | 4th of February 2026 |
| Issuance Date | 4th of February 2021 |
| Coupon | 2.196 % |
Kaleido Biosciences Outstanding Bond Obligations
| Boeing Co 2196 | US097023DG73 | Details | |
| HSBC Holdings PLC | US404280DR76 | Details |
Understaning Kaleido Biosciences Use of Financial Leverage
Leverage ratios show Kaleido Biosciences' 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 Kaleido Biosciences' 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).
Kaleido Biosciences, Inc., a clinical-stage healthcare company, develops microbiome metabolic therapies. Kaleido Biosciences, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts. Kaleido Biosciences operates under Biotechnology classification in the United States and is traded on OTC Exchange. It employs 76 people. Please read more on our technical analysis page.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Consideration for investing in Kaleido Pink Sheet
If you are still planning to invest in Kaleido Biosciences check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Kaleido Biosciences' history and understand the potential risks before investing.
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |
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.