Penguin Solutions, Current Debt
| PENG Stock | 17.41 0.46 2.71% |
The current Net Debt is estimated to decrease to about 254.7 M. The current Long Term Debt is estimated to decrease to about 555.3 M. Penguin Solutions,'s financial risk is the risk to Penguin Solutions, stockholders that is caused by an increase in debt.
Given that Penguin Solutions,'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 Penguin Solutions, 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 Penguin Solutions, to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Penguin Solutions, is said to be less leveraged. If creditors hold a majority of Penguin Solutions,'s assets, the Company is said to be highly leveraged.
At this time, Penguin Solutions,'s Total Current Liabilities is most likely to increase significantly in the upcoming years. The Penguin Solutions,'s current Non Current Liabilities Other is estimated to increase to about 32.7 M, while Non Current Liabilities Total is projected to decrease to roughly 646.9 M. Penguin |
Penguin Solutions, Financial Rating
Penguin Solutions, financial ratings play a critical role in determining how much Penguin Solutions, 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 Penguin Solutions,'s borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (3.80) | Unlikely Manipulator | View |
Penguin Solutions, Total Assets Over Time
Penguin Solutions, 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 Penguin Solutions,'s operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Penguin Solutions,, which in turn will lower the firm's financial flexibility.Penguin Net Debt
Net Debt |
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Understaning Penguin Solutions, Use of Financial Leverage
Penguin Solutions,'s financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Penguin Solutions,'s total debt position, including all outstanding debt obligations, and compares it with Penguin Solutions,'s equity. Financial leverage can amplify the potential profits to Penguin Solutions,'s owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Penguin Solutions, is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | 274.2 M | 254.7 M | |
| Long Term Debt | 657.3 M | 555.3 M | |
| Short and Long Term Debt | 41 M | 25.5 M |
Currently Active Assets on Macroaxis
When determining whether Penguin Solutions, is a strong investment it is important to analyze Penguin Solutions,'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 Penguin Solutions,'s future performance. For an informed investment choice regarding Penguin Stock, refer to the following important reports:Check out the analysis of Penguin Solutions, Fundamentals Over Time. For more detail on how to invest in Penguin Stock please use our How to Invest in Penguin Solutions, guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Electronic Equipment 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 Penguin Solutions,. If investors know Penguin 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 Penguin Solutions, listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.85) | Revenue Per Share 22.332 | Quarterly Revenue Growth (0.02) | Return On Assets 0.0086 | Return On Equity (0.13) |
The market value of Penguin Solutions, is measured differently than its book value, which is the value of Penguin that is recorded on the company's balance sheet. Investors also form their own opinion of Penguin Solutions,'s value that differs from its market value or its book value, called intrinsic value, which is Penguin Solutions,'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 Penguin Solutions,'s market value can be influenced by many factors that don't directly affect Penguin Solutions,'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 Penguin Solutions,'s value and its price as these two are different measures arrived at by different means. Investors typically determine if Penguin Solutions, is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penguin Solutions,'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.