SAIHEAT Current Debt
| SAIH Stock | 1.00 0.03 3.09% |
SAIHEAT's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. SAIHEAT's financial risk is the risk to SAIHEAT stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
The SAIHEAT's current Total Current Liabilities is estimated to increase to about 814.5 K, while Non Current Liabilities Total is projected to decrease to under 540.5 K. SAIHEAT |
SAIHEAT Financial Rating
SAIHEAT Limited financial ratings play a critical role in determining how much SAIHEAT 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 SAIHEAT's borrowing costs.| Piotroski F Score | 1 | Very Weak | View |
| Beneish M Score | (4.33) | Unlikely Manipulator | View |
SAIHEAT Total Assets Over Time
SAIHEAT 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 SAIHEAT's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of SAIHEAT, which in turn will lower the firm's financial flexibility.Understaning SAIHEAT Use of Financial Leverage
Understanding the composition and structure of SAIHEAT'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 SAIHEAT'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).
SAIHEAT is entity of United States. It is traded as Stock on NASDAQ exchange. Please read more on our technical analysis page.
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When determining whether SAIHEAT Limited is a strong investment it is important to analyze SAIHEAT's 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 SAIHEAT's future performance. For an informed investment choice regarding SAIHEAT Stock, refer to the following important reports:Check out the analysis of SAIHEAT Fundamentals Over Time. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is IT Consulting & Other Services 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 SAIHEAT. If investors know SAIHEAT 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 SAIHEAT listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.26) | Revenue Per Share 0.289 | Quarterly Revenue Growth (0.29) | Return On Assets (0.23) | Return On Equity (0.33) |
The market value of SAIHEAT Limited is measured differently than its book value, which is the value of SAIHEAT that is recorded on the company's balance sheet. Investors also form their own opinion of SAIHEAT's value that differs from its market value or its book value, called intrinsic value, which is SAIHEAT'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 SAIHEAT's market value can be influenced by many factors that don't directly affect SAIHEAT'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 SAIHEAT's value and its price as these two are different measures arrived at by different means. Investors typically determine if SAIHEAT is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SAIHEAT'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.