Nano Dimension Debt

NNDM Stock  USD 2.28  0.17  8.06%   
Nano Dimension holds a debt-to-equity ratio of 0.009. At this time, Nano Dimension's Total Debt To Capitalization is very stable compared to the past year. As of the 26th of November 2024, Debt Equity Ratio is likely to grow to 0.0007, while Long Term Debt is likely to drop about 565.2 K. . Nano Dimension's financial risk is the risk to Nano Dimension stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Nano Dimension's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Nano Dimension's 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 Nano Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Nano Dimension's stakeholders.
For most companies, including Nano Dimension, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Nano Dimension, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Nano Dimension's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
0.5338
Book Value
4.253
Operating Margin
(1.39)
Profit Margin
(2.66)
Return On Assets
(0.06)
At this time, Nano Dimension's Total Current Liabilities is very stable compared to the past year. As of the 26th of November 2024, Liabilities And Stockholders Equity is likely to grow to about 1.1 B, while Non Current Liabilities Total is likely to drop about 7.7 M.
  
Check out the analysis of Nano Dimension Fundamentals Over Time.
To learn how to invest in Nano Stock, please use our How to Invest in Nano Dimension guide.

Nano Dimension Bond Ratings

Nano Dimension financial ratings play a critical role in determining how much Nano Dimension 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 Nano Dimension's borrowing costs.
Piotroski F Score
3
FrailView
Beneish M Score
(2.51)
Unlikely ManipulatorView

Nano Dimension Debt to Cash Allocation

Many companies such as Nano Dimension, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Nano Dimension currently holds 13.81 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest the company is not taking enough advantage from borrowing. Nano Dimension has a current ratio of 35.97, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Nano Dimension's use of debt, we should always consider it together with its cash and equity.

Nano Dimension Common Stock Shares Outstanding Over Time

Nano Dimension Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Nano Dimension 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.

Nano Dimension Debt Ratio

    
  0.0565   
It appears that most of the Nano Dimension'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 Nano Dimension's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Nano Dimension, which in turn will lower the firm's financial flexibility.

Nano Dimension Corporate Bonds Issued

Nano Short Long Term Debt Total

Short Long Term Debt Total

14.5 Million

At this time, Nano Dimension's Short and Long Term Debt Total is very stable compared to the past year.

Understaning Nano Dimension Use of Financial Leverage

Leverage ratios show Nano Dimension'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 Nano Dimension'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 Total13.8 M14.5 M
Net Debt-295.8 M-310.5 M
Short and Long Term Debt1.9 MM
Short Term Debt4.5 M4.7 M
Long Term Debt595 K565.2 K
Long Term Debt Total1.9 M1.7 M
Net Debt To EBITDA 6.14  6.44 
Cash Flow To Debt Ratio(165.99)(174.29)
Please read more on our technical analysis page.

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When determining whether Nano Dimension is a strong investment it is important to analyze Nano Dimension'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 Nano Dimension's future performance. For an informed investment choice regarding Nano Stock, refer to the following important reports:
Check out the analysis of Nano Dimension Fundamentals Over Time.
To learn how to invest in Nano Stock, please use our How to Invest in Nano Dimension guide.
You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Technology Hardware, Storage & Peripherals 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 Nano Dimension. If investors know Nano 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 Nano Dimension listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.62)
Revenue Per Share
0.24
Quarterly Revenue Growth
0.017
Return On Assets
(0.06)
Return On Equity
(0.15)
The market value of Nano Dimension is measured differently than its book value, which is the value of Nano that is recorded on the company's balance sheet. Investors also form their own opinion of Nano Dimension's value that differs from its market value or its book value, called intrinsic value, which is Nano Dimension'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 Nano Dimension's market value can be influenced by many factors that don't directly affect Nano Dimension'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 Nano Dimension's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nano Dimension is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nano Dimension'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.
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.