Ovid Therapeutics Debt
| OVID Stock | USD 1.09 0.01 0.91% |
Ovid Therapeutics holds a debt-to-equity ratio of 0.104. As of November 26, 2024, Net Debt is expected to decline to about (11.6 M). In addition to that, Short and Long Term Debt Total is expected to decline to about 13 M. Ovid Therapeutics' financial risk is the risk to Ovid Therapeutics stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Ovid Therapeutics' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Ovid Therapeutics' 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 Ovid Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Ovid Therapeutics' stakeholders.
For most companies, including Ovid Therapeutics, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Ovid Therapeutics, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Ovid Therapeutics' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.0239 | Book Value 1.074 | Operating Margin (76.45) | Return On Assets (0.36) | Return On Equity (0.37) |
Ovid |
Ovid Therapeutics Bond Ratings
Ovid Therapeutics financial ratings play a critical role in determining how much Ovid Therapeutics 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 Ovid Therapeutics' borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | 1.84 | Possible Manipulator | View |
Ovid Therapeutics Debt to Cash Allocation
Many companies such as Ovid Therapeutics, 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.
Ovid Therapeutics currently holds 16 M in liabilities with Debt to Equity (D/E) ratio of 0.1, which may suggest the company is not taking enough advantage from borrowing. Ovid Therapeutics has a current ratio of 16.6, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Ovid Therapeutics' use of debt, we should always consider it together with its cash and equity.Ovid Therapeutics Total Assets Over Time
Ovid Therapeutics 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 Ovid Therapeutics' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Ovid Therapeutics, which in turn will lower the firm's financial flexibility.Ovid Therapeutics Corporate Bonds Issued
Most Ovid bonds can be classified according to their maturity, which is the date when Ovid Therapeutics 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.
Ovid Net Debt
Net Debt |
|
Understaning Ovid Therapeutics Use of Financial Leverage
Ovid Therapeutics' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Ovid Therapeutics' total debt position, including all outstanding debt obligations, and compares it with Ovid Therapeutics' equity. Financial leverage can amplify the potential profits to Ovid Therapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Ovid Therapeutics is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -11 M | -11.6 M | |
| Short and Long Term Debt Total | 16 M | 13 M | |
| Short Term Debt | 1.2 M | 979 K | |
| Net Debt To EBITDA | 0.19 | 0.18 |
Also Currently Popular
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 Ovid Therapeutics is a strong investment it is important to analyze Ovid Therapeutics' 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 Ovid Therapeutics' future performance. For an informed investment choice regarding Ovid Stock, refer to the following important reports:Check out the analysis of Ovid Therapeutics Fundamentals Over Time. For information on how to trade Ovid Stock refer to our How to Trade Ovid Stock guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Biotechnology 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 Ovid Therapeutics. If investors know Ovid 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 Ovid Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.46) | Revenue Per Share 0.009 | Quarterly Revenue Growth 0.587 | Return On Assets (0.36) | Return On Equity (0.37) |
The market value of Ovid Therapeutics is measured differently than its book value, which is the value of Ovid that is recorded on the company's balance sheet. Investors also form their own opinion of Ovid Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Ovid Therapeutics' 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 Ovid Therapeutics' market value can be influenced by many factors that don't directly affect Ovid Therapeutics' 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 Ovid Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ovid Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ovid Therapeutics' 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.