Rimini Street Debt
| RMNI Stock | USD 3.42 0.04 1.18% |
The Rimini Street's current Short and Long Term Debt is estimated to increase to about 5.4 M, while Net Debt is forecasted to increase to (28.9 M). With a high degree of financial leverage come high-interest payments, which usually reduce Rimini Street's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.24 | Current Value 0.21 | Quarterly Volatility 0.17208175 |
Rimini |
Rimini Street Bond Ratings
Rimini Street financial ratings play a critical role in determining how much Rimini Street 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 Rimini Street's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (1.86) | Possible Manipulator | View |
Rimini Street Debt to Cash Allocation
As Rimini Street follows its natural business cycle, the capital allocation decisions will not magically go away. Rimini Street's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Rimini Street currently holds 81.66 M in liabilities. Rimini Street has a current ratio of 0.77, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Rimini Street's use of debt, we should always consider it together with its cash and equity.Rimini Street Common Stock Shares Outstanding Over Time
Rimini Street Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Rimini Street 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.Rimini Street Debt Ratio | 21.0 |
Rimini Street Corporate Bonds Issued
Most Rimini bonds can be classified according to their maturity, which is the date when Rimini Street 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.
Rimini Net Debt
Net Debt |
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Understaning Rimini Street Use of Financial Leverage
Understanding the composition and structure of Rimini Street's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Rimini Street's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Net Debt | -30.4 M | -28.9 M | |
| Long Term Debt | 73.9 M | 44.7 M | |
| Short and Long Term Debt | 5.3 M | 5.4 M | |
| Short Term Debt | 9.5 M | 5.9 M | |
| Short and Long Term Debt Total | 93.9 M | 60.6 M | |
| Long Term Debt Total | 80.5 M | 51.7 M | |
| Net Debt To EBITDA | (0.77) | (0.81) | |
| Debt To Equity | (2.38) | (2.26) | |
| Interest Debt Per Share | 0.88 | 0.71 | |
| Debt To Assets | 0.24 | 0.21 | |
| Long Term Debt To Capitalization | 2.34 | 2.22 | |
| Total Debt To Capitalization | 1.74 | 1.10 | |
| Debt Equity Ratio | (2.38) | (2.26) | |
| Debt Ratio | 0.24 | 0.21 | |
| Cash Flow To Debt Ratio | 0.14 | 0.13 |
Currently Active Assets on Macroaxis
When determining whether Rimini Street offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Rimini Street's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rimini Street Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rimini Street Stock:Check out the analysis of Rimini Street Fundamentals Over Time. For more detail on how to invest in Rimini Stock please use our How to Invest in Rimini Street guide.You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Is Application Software 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 Rimini Street. If investors know Rimini 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 Rimini Street listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.83) | Earnings Share (0.38) | Revenue Per Share | Quarterly Revenue Growth (0.03) | Return On Assets |
The market value of Rimini Street is measured differently than its book value, which is the value of Rimini that is recorded on the company's balance sheet. Investors also form their own opinion of Rimini Street's value that differs from its market value or its book value, called intrinsic value, which is Rimini Street'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 Rimini Street's market value can be influenced by many factors that don't directly affect Rimini Street'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 Rimini Street's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rimini Street is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rimini Street'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.