SRM Entertainment, Current Debt
| SRM Stock | 0.67 0.03 4.29% |
As of the 26th of November 2024, Net Debt To EBITDA is likely to grow to 1.57, though Net Debt is likely to grow to (2.8 M). . SRM Entertainment,'s financial risk is the risk to SRM Entertainment, stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.91 | Current Value 0.74 | Quarterly Volatility 0.05655346 |
SRM |
SRM Entertainment, Financial Rating
SRM Entertainment, Common financial ratings play a critical role in determining how much SRM Entertainment, 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 SRM Entertainment,'s borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (4.11) | Unlikely Manipulator | View |
SRM Entertainment, Total Assets Over Time
SRM Entertainment, Assets Financed by Debt
The debt-to-assets ratio shows the degree to which SRM Entertainment, 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.SRM Entertainment, Debt Ratio | 74.0 |
SRM Net Debt
Understaning SRM Entertainment, Use of Financial Leverage
Leverage ratios show SRM Entertainment,'s total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of SRM Entertainment,'s financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Net Debt | -3 M | -2.8 M | |
| Short and Long Term Debt Total | 6.9 K | 6.6 K | |
| Short Term Debt | 6.9 K | 6.6 K | |
| Long Term Debt | 1.3 M | 1.2 M | |
| Short and Long Term Debt | 6.9 K | 6.2 K | |
| Net Debt To EBITDA | 1.50 | 1.57 | |
| Debt To Equity | (6.22) | (6.53) | |
| Interest Debt Per Share | 0.01 | 0.01 | |
| Debt To Assets | 0.91 | 0.74 | |
| Total Debt To Capitalization | 1.41 | 1.38 | |
| Debt Equity Ratio | (6.22) | (6.53) | |
| Debt Ratio | 0.91 | 0.74 | |
| Cash Flow To Debt Ratio | (4.47) | (4.25) |
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Is Leisure Products 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 SRM Entertainment,. If investors know SRM 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 SRM Entertainment, listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.40) | Revenue Per Share 0.51 | Quarterly Revenue Growth (0.36) | Return On Assets (0.81) | Return On Equity (2.19) |
The market value of SRM Entertainment, Common is measured differently than its book value, which is the value of SRM that is recorded on the company's balance sheet. Investors also form their own opinion of SRM Entertainment,'s value that differs from its market value or its book value, called intrinsic value, which is SRM Entertainment,'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 SRM Entertainment,'s market value can be influenced by many factors that don't directly affect SRM Entertainment,'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 SRM Entertainment,'s value and its price as these two are different measures arrived at by different means. Investors typically determine if SRM Entertainment, is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SRM Entertainment,'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.