NeueHealth Corporate Bonds and Leverage Analysis
| NEUE Stock | 5.07 0.12 2.42% |
At present, NeueHealth's Interest Debt Per Share is projected to increase significantly based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 0.32, whereas Short Term Debt is forecasted to decline to about 268.3 M. . NeueHealth's financial risk is the risk to NeueHealth stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.30799279 | Current Value 0.32 | Quarterly Volatility 0.10701818 |
NeueHealth |
Given the importance of NeueHealth's capital structure, the first step in the capital decision process is for the management of NeueHealth 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 NeueHealth to issue bonds at a reasonable cost.
NeueHealth Bond Ratings
NeueHealth financial ratings play a critical role in determining how much NeueHealth 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 NeueHealth's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | 4.67 | Possible Manipulator | View |
NeueHealth Total Assets Over Time
NeueHealth Assets Financed by Debt
The debt-to-assets ratio shows the degree to which NeueHealth 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.NeueHealth Debt Ratio | 32.0 |
NeueHealth Corporate Bonds Issued
Most NeueHealth bonds can be classified according to their maturity, which is the date when NeueHealth has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
NeueHealth Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning NeueHealth Use of Financial Leverage
NeueHealth's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures NeueHealth's total debt position, including all outstanding debt obligations, and compares it with NeueHealth's equity. Financial leverage can amplify the potential profits to NeueHealth's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if NeueHealth is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 370.3 M | 191.9 M | |
| Net Debt | 283 M | 297.2 M | |
| Short Term Debt | 311 M | 268.3 M | |
| Short and Long Term Debt | 349.5 M | 279.7 M | |
| Long Term Debt | 59.8 M | 53.1 M | |
| Net Debt To EBITDA | (0.49) | (0.47) | |
| Debt To Equity | (1.10) | (1.04) | |
| Interest Debt Per Share | 52.26 | 54.87 | |
| Debt To Assets | 0.31 | 0.32 | |
| Long Term Debt To Capitalization | (0.22) | (0.23) | |
| Total Debt To Capitalization | 11.13 | 11.69 | |
| Debt Equity Ratio | (1.10) | (1.04) | |
| Debt Ratio | 0.31 | 0.32 | |
| Cash Flow To Debt Ratio | (7.22) | (6.86) |
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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.When determining whether NeueHealth is a strong investment it is important to analyze NeueHealth's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact NeueHealth's future performance. For an informed investment choice regarding NeueHealth Stock, refer to the following important reports:Check out the analysis of NeueHealth Fundamentals Over Time. For information on how to trade NeueHealth Stock refer to our How to Trade NeueHealth Stock guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Health Care Providers & 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 NeueHealth. If investors know NeueHealth will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NeueHealth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Revenue Per Share 145.939 | Quarterly Revenue Growth 0.286 | Return On Assets (0.04) | Return On Equity (1.83) |
The market value of NeueHealth is measured differently than its book value, which is the value of NeueHealth that is recorded on the company's balance sheet. Investors also form their own opinion of NeueHealth's value that differs from its market value or its book value, called intrinsic value, which is NeueHealth's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NeueHealth's market value can be influenced by many factors that don't directly affect NeueHealth's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NeueHealth's value and its price as these two are different measures arrived at by different means. Investors typically determine if NeueHealth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NeueHealth's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
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.