Rosecliff Acquisition Debt
| RCLFDelisted Stock | USD 10.58 0.02 0.19% |
Rosecliff Acquisition holds a debt-to-equity ratio of 0.029. . Rosecliff Acquisition's financial risk is the risk to Rosecliff Acquisition stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Rosecliff Acquisition'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. Rosecliff Acquisition'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 Rosecliff Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Rosecliff Acquisition's stakeholders.
For most companies, including Rosecliff Acquisition, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Rosecliff Acquisition Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Rosecliff Acquisition's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Rosecliff Acquisition'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 Rosecliff Acquisition 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 Rosecliff Acquisition to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Rosecliff Acquisition is said to be less leveraged. If creditors hold a majority of Rosecliff Acquisition's assets, the Company is said to be highly leveraged.
Rosecliff |
Rosecliff Acquisition Debt to Cash Allocation
Many companies such as Rosecliff Acquisition, 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.
Rosecliff Acquisition Corp currently holds 149.15 K in liabilities with Debt to Equity (D/E) ratio of 0.03, which may suggest the company is not taking enough advantage from borrowing. Rosecliff Acquisition has a current ratio of 0.14, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Rosecliff Acquisition's use of debt, we should always consider it together with its cash and equity.Rosecliff Acquisition 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 Rosecliff Acquisition's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Rosecliff Acquisition, which in turn will lower the firm's financial flexibility.Rosecliff Acquisition Corporate Bonds Issued
Most Rosecliff bonds can be classified according to their maturity, which is the date when Rosecliff Acquisition Corp 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.
Understaning Rosecliff Acquisition Use of Financial Leverage
Rosecliff Acquisition's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Rosecliff Acquisition's total debt position, including all outstanding debt obligations, and compares it with Rosecliff Acquisition's equity. Financial leverage can amplify the potential profits to Rosecliff Acquisition's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Rosecliff Acquisition is unable to cover its debt costs.
Rosecliff Acquisition Corp I does not have significant operations. The company was incorporated in 2020 and is based in New York, New York. Rosecliff Acquisition operates under Shell Companies classification in the United States and is traded on NASDAQ Exchange. Please read more on our technical analysis page.
Currently Active Assets on Macroaxis
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Consideration for investing in Rosecliff Stock
If you are still planning to invest in Rosecliff Acquisition check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Rosecliff Acquisition's history and understand the potential risks before investing.
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |
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.