3 E Debt
| MASK Stock | 0.24 0.01 4.35% |
At this time, 3 E's Debt Ratio is quite stable compared to the past year. 3 E's financial risk is the risk to 3 E stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.13 | Current Value 0.2 | Quarterly Volatility 0.04587904 |
Given that 3 E's 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 3 E 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 3 E to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, 3 E is said to be less leveraged. If creditors hold a majority of 3 E's assets, the Company is said to be highly leveraged.
At this time, 3 E's Total Current Liabilities is quite stable compared to the past year. Liabilities And Stockholders Equity is expected to rise to about 11.3 M this year, although the value of Non Current Liabilities Total will most likely fall to about 670.8 K. Check out the analysis of 3 E Financial Statements. 3 E Bond Ratings
3 E Network financial ratings play a critical role in determining how much 3 E 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 3 E's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (2.74) | Unlikely Manipulator | View |
3 E Total Assets Over Time
3 E Assets Financed by Debt
The debt-to-assets ratio shows the degree to which 3 E 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.3 E Debt Ratio | 20.0 |
3 E Corporate Bonds Issued
MASK Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning 3 E Use of Financial Leverage
Leverage ratios show 3 E'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 3 E'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 | 1.2 M | 670.8 K | |
| Net Debt | 881.7 K | 552.1 K | |
| Long Term Debt | 1.2 M | 670.8 K | |
| Short Term Debt | 668.8 K | 594.5 K | |
| Net Debt To EBITDA | 0.46 | 0.50 | |
| Debt To Equity | 0.23 | 0.22 | |
| Interest Debt Per Share | 0.08 | 0.09 | |
| Debt To Assets | 0.13 | 0.20 | |
| Long Term Debt To Capitalization | 0.19 | 0.33 | |
| Total Debt To Capitalization | 0.19 | 0.33 | |
| Debt Equity Ratio | 0.23 | 0.22 | |
| Debt Ratio | 0.13 | 0.20 | |
| Cash Flow To Debt Ratio | 0.01 | 0.01 |
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Is IT Consulting & Other Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of 3 E. Expected growth trajectory for MASK significantly influences the price investors are willing to assign. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive 3 E assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Investors evaluate 3 E Network using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating 3 E's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause 3 E's market price to deviate significantly from intrinsic value.
Understanding that 3 E's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether 3 E represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, 3 E'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.