ProKidney Corp Current Debt
| PROK Stock | USD 1.85 0.03 1.60% |
ProKidney Corp has over 4.41 Million in debt which may indicate that it relies heavily on debt financing. The value of Short and Long Term Debt Total is expected to slide to about 2.4 M. The value of Net Debt is estimated to slide to about (59 M). ProKidney Corp's financial risk is the risk to ProKidney Corp stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
ProKidney Corp'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. ProKidney Corp'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 ProKidney Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect ProKidney Corp's stakeholders.
For most companies, including ProKidney Corp, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for ProKidney Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, ProKidney Corp's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 91.3172 | Book Value (7.66) | Return On Assets (0.20) | Return On Equity (0.31) |
ProKidney |
ProKidney Corp Financial Rating
ProKidney Corp financial ratings play a critical role in determining how much ProKidney Corp 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 ProKidney Corp's borrowing costs.| Piotroski F Score | 1 | Very Weak | View |
| Beneish M Score | (5.90) | Unlikely Manipulator | View |
ProKidney Corp Debt to Cash Allocation
ProKidney Corp currently holds 4.41 M in liabilities with Debt to Equity (D/E) ratio of 5.66, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. ProKidney Corp has a current ratio of 0.73, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about ProKidney Corp's use of debt, we should always consider it together with its cash and equity.ProKidney Corp Total Assets Over Time
ProKidney Corp 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 ProKidney Corp's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of ProKidney Corp, which in turn will lower the firm's financial flexibility.ProKidney Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning ProKidney Corp Use of Financial Leverage
Leverage ratios show ProKidney Corp'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 ProKidney Corp'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 | ||
| Short and Long Term Debt Total | 4.4 M | 2.4 M | |
| Net Debt | -56.2 M | -59 M | |
| Short Term Debt | 803 K | 491.7 K | |
| Net Debt To EBITDA | 0.38 | 0.36 |
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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 ProKidney Corp. If investors know ProKidney 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 ProKidney Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.54) | Return On Assets (0.20) | Return On Equity (0.31) |
The market value of ProKidney Corp is measured differently than its book value, which is the value of ProKidney that is recorded on the company's balance sheet. Investors also form their own opinion of ProKidney Corp's value that differs from its market value or its book value, called intrinsic value, which is ProKidney Corp'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 ProKidney Corp's market value can be influenced by many factors that don't directly affect ProKidney Corp'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 ProKidney Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if ProKidney Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ProKidney Corp'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.