Oriental Culture Debt
| OCG Stock | USD 1.22 0.06 4.69% |
At this time, Oriental Culture's Short and Long Term Debt Total is most likely to increase significantly in the upcoming years. The Oriental Culture's current Net Debt To EBITDA is estimated to increase to 4.98, while Net Debt is projected to decrease to (18.6 M). . Oriental Culture's financial risk is the risk to Oriental Culture stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.000203 | Current Value 0.000181 | Quarterly Volatility 0.0000127 |
Oriental |
Oriental Culture Bond Ratings
Oriental Culture Holding financial ratings play a critical role in determining how much Oriental Culture 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 Oriental Culture's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (7.86) | Unlikely Manipulator | View |
Oriental Culture Holding Debt to Cash Allocation
Many companies such as Oriental Culture, 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.
Oriental Culture Holding has 11.48 K in debt. Oriental Culture Holding has a current ratio of 9.7, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Oriental to invest in growth at high rates of return. Oriental Culture Total Assets Over Time
Oriental Culture Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Oriental Culture 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.Oriental Culture Debt Ratio | 0.0181 |
Oriental Culture Corporate Bonds Issued
Most Oriental bonds can be classified according to their maturity, which is the date when Oriental Culture Holding 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.
Oriental Net Debt
Net Debt |
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Understaning Oriental Culture Use of Financial Leverage
Oriental Culture's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Oriental Culture's total debt position, including all outstanding debt obligations, and compares it with Oriental Culture's equity. Financial leverage can amplify the potential profits to Oriental Culture's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Oriental Culture is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -17.7 M | -18.6 M | |
| Short Term Debt | 11.5 K | 10.9 K | |
| Short and Long Term Debt Total | 11.5 K | 14.7 K | |
| Net Debt To EBITDA | 4.74 | 4.98 | |
| Cash Flow To Debt Ratio | 706.66 | 628.14 |
Currently Active Assets on Macroaxis
When determining whether Oriental Culture Holding is a strong investment it is important to analyze Oriental Culture'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 Oriental Culture's future performance. For an informed investment choice regarding Oriental Stock, refer to the following important reports:Check out the analysis of Oriental Culture Fundamentals Over Time. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Interactive Media & 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 Oriental Culture. If investors know Oriental 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 Oriental Culture listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.46) | Earnings Share (0.62) | Revenue Per Share 0.37 | Quarterly Revenue Growth 0.019 | Return On Assets (0.05) |
The market value of Oriental Culture Holding is measured differently than its book value, which is the value of Oriental that is recorded on the company's balance sheet. Investors also form their own opinion of Oriental Culture's value that differs from its market value or its book value, called intrinsic value, which is Oriental Culture'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 Oriental Culture's market value can be influenced by many factors that don't directly affect Oriental Culture'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 Oriental Culture's value and its price as these two are different measures arrived at by different means. Investors typically determine if Oriental Culture is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oriental Culture'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.