Nogin Current Debt
| NOGNDelisted Stock | USD 0.96 0.13 11.93% |
Nogin's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Nogin's financial risk is the risk to Nogin stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Given that Nogin'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 Nogin 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 Nogin to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Nogin is said to be less leveraged. If creditors hold a majority of Nogin's assets, the Company is said to be highly leveraged.
Nogin |
Nogin Inc Debt to Cash Allocation
As Nogin Inc follows its natural business cycle, the capital allocation decisions will not magically go away. Nogin's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Nogin Inc currently holds 80.44 M in liabilities. Nogin Inc has a current ratio of 0.73, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Nogin's use of debt, we should always consider it together with its cash and equity.Nogin Assets Financed by Debt
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 Nogin's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Nogin, which in turn will lower the firm's financial flexibility.Understaning Nogin Use of Financial Leverage
Leverage ratios show Nogin'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 Nogin'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).
The company offers solutions in the areas of onboarding and discovery assessment of critical business issue roadmap development project and task management implementation and execution plan client support product management reporting and analytics and operational support and campaign management. The company was incorporated in 2010 and is based in Tustin, California. Nogin operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. Please read more on our technical analysis page.
Pair Trading with Nogin
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nogin position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nogin will appreciate offsetting losses from the drop in the long position's value.Moving together with Nogin Stock
| 0.82 | BKRKY | Bank Rakyat | PairCorr |
| 0.76 | BKRKF | PT Bank Rakyat | PairCorr |
| 0.74 | PPERY | Bank Mandiri Persero | PairCorr |
| 0.78 | PPERF | Bank Mandiri Persero | PairCorr |
Moving against Nogin Stock
| 0.88 | CSCO | Cisco Systems Aggressive Push | PairCorr |
| 0.86 | T | ATT Inc Aggressive Push | PairCorr |
| 0.85 | TRV | The Travelers Companies Fiscal Year End 17th of January 2025 | PairCorr |
| 0.82 | BAC | Bank of America Aggressive Push | PairCorr |
| 0.8 | SSNLF | Samsung Electronics | PairCorr |
The ability to find closely correlated positions to Nogin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nogin when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nogin - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nogin Inc to buy it.
The correlation of Nogin is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nogin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nogin Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nogin can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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 price. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Consideration for investing in Nogin Stock
If you are still planning to invest in Nogin Inc 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 Nogin's history and understand the potential risks before investing.
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| 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 | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |
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.