Oric Pharmaceuticals Debt
| ORIC Stock | USD 10.56 0.15 1.40% |
Oric Pharmaceuticals holds a debt-to-equity ratio of 0.054. The current year's Total Debt To Capitalization is expected to grow to 0.02, whereas Net Debt is forecasted to decline to (53.1 M). With a high degree of financial leverage come high-interest payments, which usually reduce Oric Pharmaceuticals' Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Oric Pharmaceuticals' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Oric Pharmaceuticals' 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 Oric Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Oric Pharmaceuticals' stakeholders.
For most companies, including Oric Pharmaceuticals, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Oric Pharmaceuticals, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Oric Pharmaceuticals' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
The current year's Total Current Liabilities is expected to grow to about 30 M, whereas Liabilities And Stockholders Equity is forecasted to decline to about 212.8 M. Check out the analysis of Oric Pharmaceuticals Financial Statements. Oric Pharmaceuticals Bond Ratings
Oric Pharmaceuticals financial ratings play a critical role in determining how much Oric Pharmaceuticals 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 Oric Pharmaceuticals' borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (5.54) | Unlikely Manipulator | View |
Oric Pharmaceuticals Debt to Cash Allocation
As Oric Pharmaceuticals follows its natural business cycle, the capital allocation decisions will not magically go away. Oric Pharmaceuticals' 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.
Oric Pharmaceuticals currently holds 3.18 M in liabilities with Debt to Equity (D/E) ratio of 0.05, which may suggest the company is not taking enough advantage from borrowing. Oric Pharmaceuticals has a current ratio of 18.35, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Oric Pharmaceuticals' use of debt, we should always consider it together with its cash and equity.Oric Pharmaceuticals Total Assets Over Time
Oric Pharmaceuticals Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Oric Pharmaceuticals 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.Oric Pharmaceuticals Debt Ratio | 0.99 |
Oric Pharmaceuticals Corporate Bonds Issued
Most Oric bonds can be classified according to their maturity, which is the date when Oric Pharmaceuticals 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.
Oric Net Debt
Net Debt |
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Understaning Oric Pharmaceuticals Use of Financial Leverage
Oric Pharmaceuticals' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Oric Pharmaceuticals' total debt position, including all outstanding debt obligations, and compares it with Oric Pharmaceuticals' equity. Financial leverage can amplify the potential profits to Oric Pharmaceuticals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Oric Pharmaceuticals is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -50.6 M | -53.1 M | |
| Short Term Debt | 3.7 M | 2.1 M | |
| Short and Long Term Debt Total | 3.7 M | 3.5 M | |
| Net Debt To EBITDA | 0.51 | 0.48 | |
| Debt To Equity | 0.01 | 0.01 | |
| Interest Debt Per Share | 0.05 | 0.05 | |
| Debt To Assets | 0.01 | 0.01 | |
| Total Debt To Capitalization | 0.01 | 0.02 | |
| Debt Equity Ratio | 0.01 | 0.01 | |
| Debt Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | (40.70) | (42.74) |
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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 Oric Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Oric Pharmaceuticals' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Oric Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Oric Pharmaceuticals Stock:Check out the analysis of Oric Pharmaceuticals Financial Statements. For information on how to trade Oric Stock refer to our How to Trade Oric Stock guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Will Biotechnology sector continue expanding? Could Oric diversify its offerings? Factors like these will boost the valuation of Oric Pharmaceuticals. Anticipated expansion of Oric directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Oric Pharmaceuticals data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Oric Pharmaceuticals's market price often diverges from its book value, the accounting figure shown on Oric's balance sheet. Smart investors calculate Oric Pharmaceuticals' intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Oric Pharmaceuticals' trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Oric Pharmaceuticals' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Oric Pharmaceuticals should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Oric Pharmaceuticals' 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.