Reviva Pharmaceuticals Debt
| RVPH Stock | USD 1.15 0.01 0.88% |
The Reviva Pharmaceuticals' current Net Debt To EBITDA is estimated to increase to 0.73, while Short and Long Term Debt Total is projected to decrease to under 3 M. With a high degree of financial leverage come high-interest payments, which usually reduce Reviva Pharmaceuticals' Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 1.3 K | Current Value 1.2 K | Quarterly Volatility 81.18233818 |
Reviva |
Reviva Pharmaceuticals Bond Ratings
Reviva Pharmaceuticals Holdings financial ratings play a critical role in determining how much Reviva Pharmaceuticals 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 Reviva Pharmaceuticals' borrowing costs.| Piotroski F Score | 4 | Poor | View |
| Beneish M Score | (7.46) | Unlikely Manipulator | View |
Reviva Pharmaceuticals Debt to Cash Allocation
As Reviva Pharmaceuticals Holdings follows its natural business cycle, the capital allocation decisions will not magically go away. Reviva Pharmaceuticals' 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.
Reviva Pharmaceuticals Holdings currently holds 17.98 M in liabilities. Reviva Pharmaceuticals has a current ratio of 6.59, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Reviva Pharmaceuticals' use of debt, we should always consider it together with its cash and equity.Reviva Pharmaceuticals Total Current Liabilities Over Time
Reviva Pharmaceuticals Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Reviva Pharmaceuticals 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.Reviva Pharmaceuticals Debt Ratio | 115849.0 |
Reviva Pharmaceuticals Corporate Bonds Issued
Most Reviva bonds can be classified according to their maturity, which is the date when Reviva Pharmaceuticals Holdings 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 Reviva Pharmaceuticals Use of Financial Leverage
Understanding the composition and structure of Reviva Pharmaceuticals' 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 Reviva Pharmaceuticals' 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 | ||
| Short and Long Term Debt Total | 3.4 M | 3 M | |
| Net Debt | -16.7 M | -17.5 M | |
| Short and Long Term Debt | 3.4 M | 3 M | |
| Short Term Debt | 3.4 M | 3 M | |
| Net Debt To EBITDA | 0.69 | 0.73 | |
| Debt To Equity | (0.50) | (0.52) | |
| Interest Debt Per Share | 0.01 | 0.01 | |
| Debt To Assets | 1.3 K | 1.2 K | |
| Total Debt To Capitalization | (1.11) | (1.17) | |
| Debt Equity Ratio | (0.50) | (0.52) | |
| Debt Ratio | 1.3 K | 1.2 K | |
| Cash Flow To Debt Ratio | (0.05) | (0.05) |
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When determining whether Reviva Pharmaceuticals is a strong investment it is important to analyze Reviva Pharmaceuticals' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Reviva Pharmaceuticals' future performance. For an informed investment choice regarding Reviva Stock, refer to the following important reports:Check out the analysis of Reviva Pharmaceuticals Fundamentals Over Time. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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 Reviva Pharmaceuticals. If investors know Reviva 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 Reviva Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.08) | Return On Assets (2.34) | Return On Equity (17.95) |
The market value of Reviva Pharmaceuticals is measured differently than its book value, which is the value of Reviva that is recorded on the company's balance sheet. Investors also form their own opinion of Reviva Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Reviva Pharmaceuticals' 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 Reviva Pharmaceuticals' market value can be influenced by many factors that don't directly affect Reviva Pharmaceuticals' 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 Reviva Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Reviva Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reviva Pharmaceuticals' 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.