Asian Television Debt
| SAT Stock | CAD 0.08 0.01 11.11% |
Asian Television Network has over 832,882 in debt which may indicate that it relies heavily on debt financing. Long Term Debt is likely to drop to about 28.5 K in 2024. Short and Long Term Debt is likely to drop to about 529.1 K in 2024. Asian Television's financial risk is the risk to Asian Television stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Asian Television'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. Asian Television'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 Asian Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Asian Television's stakeholders.
Asian Television Quarterly Net Debt |
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For most companies, including Asian Television, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Asian Television Network, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Asian Television's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 2.6001 | Book Value (0.03) | Operating Margin (0.15) | Profit Margin (0.27) | Return On Assets (0.18) |
Given that Asian Television'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 Asian Television 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 Asian Television to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Asian Television is said to be less leveraged. If creditors hold a majority of Asian Television's assets, the Company is said to be highly leveraged.
Change To Liabilities is expected to grow at the current pace this year, whereas Total Current Liabilities is likely to drop slightly above 3.6 M in 2024. Asian |
Asian Television Network Debt to Cash Allocation
Many companies such as Asian Television, 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.
Asian Television Network has accumulated 832.88 K in total debt with debt to equity ratio (D/E) of 33.6, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Asian Television Network has a current ratio of 1.27, suggesting that it may have difficulties to pay its financial obligations in time and when they become due. Debt can assist Asian Television until it has trouble settling it off, either with new capital or with free cash flow. So, Asian Television's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Asian Television Network sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Asian to invest in growth at high rates of return. When we think about Asian Television's use of debt, we should always consider it together with cash and equity.Asian Television Total Assets Over Time
Asian Television 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 Asian Television's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Asian Television, which in turn will lower the firm's financial flexibility.Asian Television Corporate Bonds Issued
Asian Long Term Debt
Long Term Debt |
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Understaning Asian Television Use of Financial Leverage
Understanding the structure of Asian Television's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Asian Television's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 30 K | 28.5 K | |
| Short and Long Term Debt | 832.9 K | 529.1 K | |
| Short Term Debt | 207 K | 196.7 K | |
| Net Debt | 738.7 K | 419.9 K |
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Additional Tools for Asian Stock Analysis
When running Asian Television's price analysis, check to measure Asian Television'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 Asian Television is operating at the current time. Most of Asian Television's value examination focuses on studying past and present price action to predict the probability of Asian Television's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Asian Television's price. Additionally, you may evaluate how the addition of Asian Television 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.