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
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
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
HealthyView
Beneish M Score
(2.74)
Unlikely ManipulatorView

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   
It seems most of the 3 E's assets are financed through equity. 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 3 E's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of 3 E, which in turn will lower the firm's financial flexibility.

3 E Corporate Bonds Issued

MASK Short Long Term Debt Total

Short Long Term Debt Total

670,811

At this time, 3 E's Short and Long Term Debt Total is quite stable compared to the past year.

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 ReportedProjected for Next Year
Short and Long Term Debt Total1.2 M670.8 K
Net Debt881.7 K552.1 K
Long Term Debt1.2 M670.8 K
Short Term Debt668.8 K594.5 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 
Please read more on our technical analysis page.

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When determining whether 3 E Network is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if MASK Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about 3 E Network Stock. Highlighted below are key reports to facilitate an investment decision about 3 E Network Stock:
Check out the analysis of 3 E Financial Statements.
You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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.
Earnings Share
0.14
Revenue Per Share
0.456
Return On Assets
0.1826
Return On Equity
0.3653
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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.