Psyence Biomedical Current Debt
| PBM Stock | USD 1.62 0.05 3.18% |
As of the 2nd of February 2025, Net Debt is likely to grow to about 11.7 M, while Short and Long Term Debt Total is likely to drop about 8.4 M. . Psyence Biomedical's financial risk is the risk to Psyence Biomedical stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 8.31 | Current Value 7.38 | Quarterly Volatility 0.50206564 |
Given that Psyence Biomedical'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 Psyence Biomedical 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 Psyence Biomedical to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Psyence Biomedical is said to be less leveraged. If creditors hold a majority of Psyence Biomedical's assets, the Company is said to be highly leveraged.
As of the 2nd of February 2025, Total Current Liabilities is likely to drop to about 7.3 M. In addition to that, Liabilities And Stockholders Equity is likely to drop to about 968 KPsyence |
Psyence Biomedical Financial Rating
Psyence Biomedical Ltd financial ratings play a critical role in determining how much Psyence Biomedical 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 Psyence Biomedical's borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (4.30) | Unlikely Manipulator | View |
Psyence Biomedical Debt to Cash Allocation
Many companies such as Psyence Biomedical, 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.
Psyence Biomedical Ltd has 10.45 M in debt. Psyence Biomedical has a current ratio of 7.79, 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 Psyence to invest in growth at high rates of return. Psyence Biomedical Total Assets Over Time
Psyence Biomedical Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Psyence Biomedical 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.Psyence Biomedical Debt Ratio | 738.0 |
Psyence Net Debt
Net Debt |
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Understaning Psyence Biomedical Use of Financial Leverage
Leverage ratios show Psyence Biomedical'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 Psyence Biomedical'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 Reported | Projected for Next Year | ||
| Net Debt | 11.2 M | 11.7 M | |
| Short and Long Term Debt Total | 9.4 M | 8.4 M | |
| Short and Long Term Debt | 9.4 M | 8.4 M | |
| Short Term Debt | 9.4 M | 8.4 M | |
| Net Debt To EBITDA | (4.05) | (3.85) | |
| Debt To Equity | (0.86) | (0.90) | |
| Interest Debt Per Share | 1.45 | 1.29 | |
| Debt To Assets | 8.31 | 7.38 | |
| Total Debt To Capitalization | (17.92) | (18.82) | |
| Debt Equity Ratio | (0.86) | (0.90) | |
| Debt Ratio | 8.31 | 7.38 | |
| Cash Flow To Debt Ratio | (0.25) | (0.27) |
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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 Psyence Biomedical. If investors know Psyence 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 Psyence Biomedical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Psyence Biomedical is measured differently than its book value, which is the value of Psyence that is recorded on the company's balance sheet. Investors also form their own opinion of Psyence Biomedical's value that differs from its market value or its book value, called intrinsic value, which is Psyence Biomedical'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 Psyence Biomedical's market value can be influenced by many factors that don't directly affect Psyence Biomedical'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 Psyence Biomedical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Psyence Biomedical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Psyence Biomedical'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.