Plandai Biotech AerCap Bond
Plandai Biotech holds a debt-to-equity ratio of 0.95. . Plandai Biotech's financial risk is the risk to Plandai Biotech stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Plandai Biotech's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Plandai Biotech's 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 Plandai Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Plandai Biotech's stakeholders.
For most companies, including Plandai Biotech, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Plandai Biotech, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Plandai Biotech's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Plandai |
| Popular Name | Plandai Biotech AerCap Global Aviation |
| Equity ISIN Code | US72703D1000 |
| Bond Issue ISIN Code | US00773HAA59 |
| S&P Rating | Others |
| Maturity Date | 15th of June 2045 |
| Issuance Date | Others |
| Coupon | 6.5 % |
Plandai Biotech Outstanding Bond Obligations
| Morgan Stanley 3971 | US61744YAL20 | Details | |
| AerCap Global Aviation | US00773HAA59 | Details |
Understaning Plandai Biotech Use of Financial Leverage
Leverage ratios show Plandai Biotech'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 Plandai Biotech'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).
Planda Biotechnology, Inc. focuses on the production of proprietary botanical extracts for the nutriceutical and pharmaceutical industries. Planda Biotechnology, Inc. is based in London, the United Kingdom. Diamond Ranch is traded on OTC Exchange in the United States. Please read more on our technical analysis page.
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Plandai Biotech financial ratios help investors to determine whether Plandai Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Plandai with respect to the benefits of owning Plandai Biotech security.
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.