808 Renewable Energy Volcan Bond
| RNWR Stock | USD 0.0001 0.00 0.00% |
808 Renewable Energy has over 30,276 in debt which may indicate that it relies heavily on debt financing. . 808 Renewable's financial risk is the risk to 808 Renewable stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
808 Renewable'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. 808 Renewable'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 808 Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect 808 Renewable's stakeholders.
For most companies, including 808 Renewable, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for 808 Renewable Energy, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, 808 Renewable's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
808 |
Given the importance of 808 Renewable's capital structure, the first step in the capital decision process is for the management of 808 Renewable to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of 808 Renewable Energy to issue bonds at a reasonable cost.
| Popular Name | 808 Renewable Volcan Compania Minera |
| Equity ISIN Code | US28252A1034 |
| Bond Issue ISIN Code | USP98047AC08 |
| S&P Rating | Others |
| Maturity Date | 11th of February 2026 |
| Issuance Date | 11th of February 2021 |
| Coupon | 4.375 % |
808 Renewable Energy Outstanding Bond Obligations
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Understaning 808 Renewable Use of Financial Leverage
808 Renewable's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to 808 Renewable's current equity. If creditors own a majority of 808 Renewable's assets, the company is considered highly leveraged. Understanding the composition and structure of 808 Renewable's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
808 Renewable Energy Corporation, through its subsidiaries, engages in the design, development, manufacture, distribution, and marketing of general aviation and electric vehicles in the United States. The company was formerly known as Tri-Energy Corporation and changed its name to 808 Renewable Energy Corporation in August 2021. 808 Renewable Energy Corporation was incorporated in 2009 and is based in Bradenton, Florida. 808 Renewable operates under Aerospace Defense classification in the United States and is traded on OTC Exchange. It employs 20 people. Please read more on our technical analysis page.
Pair Trading with 808 Renewable
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if 808 Renewable position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 808 Renewable will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to 808 Renewable could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace 808 Renewable when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back 808 Renewable - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling 808 Renewable Energy to buy it.
The correlation of 808 Renewable is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as 808 Renewable moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if 808 Renewable Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for 808 Renewable can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for 808 Pink Sheet Analysis
When running 808 Renewable's price analysis, check to measure 808 Renewable's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy 808 Renewable is operating at the current time. Most of 808 Renewable's value examination focuses on studying past and present price action to predict the probability of 808 Renewable's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 808 Renewable's price. Additionally, you may evaluate how the addition of 808 Renewable to your portfolios can decrease your overall portfolio volatility.
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.