ScanTech Debt
| STAI Stock | USD 1.26 0.17 11.89% |
As of now, ScanTech's Debt To Assets are decreasing as compared to previous years. The ScanTech's current Debt Ratio is estimated to increase to 37.37, while Net Debt is projected to decrease to under 43.7 M. With a high degree of financial leverage come high-interest payments, which usually reduce ScanTech's Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 26.71 | Current Value 37.37 | Quarterly Volatility 4.50316388 |
Given that ScanTech'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 ScanTech 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 ScanTech to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, ScanTech is said to be less leveraged. If creditors hold a majority of ScanTech's assets, the Company is said to be highly leveraged.
The ScanTech's current Total Current Liabilities is estimated to increase to about 190.5 M, while Non Current Liabilities Total is projected to decrease to under 31 M. Check out the analysis of ScanTech Financial Statements. ScanTech Bond Ratings
ScanTech AI Systems financial ratings play a critical role in determining how much ScanTech 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 ScanTech's borrowing costs.| Piotroski F Score | 2 | Frail | View |
| Beneish M Score | (7.70) | Unlikely Manipulator | View |
ScanTech AI Systems Debt to Cash Allocation
As ScanTech AI Systems follows its natural business cycle, the capital allocation decisions will not magically go away. ScanTech's 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.
ScanTech AI Systems currently holds 49.99 M in liabilities. ScanTech AI Systems has a current ratio of 2.03, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about ScanTech's use of debt, we should always consider it together with its cash and equity.ScanTech Total Assets Over Time
ScanTech Assets Financed by Debt
The debt-to-assets ratio shows the degree to which ScanTech 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.ScanTech Debt Ratio | 3737.0 |
ScanTech Corporate Bonds Issued
Most ScanTech bonds can be classified according to their maturity, which is the date when ScanTech AI Systems 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.
ScanTech Long Term Debt
Long Term Debt |
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Understaning ScanTech Use of Financial Leverage
Understanding the composition and structure of ScanTech'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 ScanTech'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).
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 7.6 M | 8 M | |
| Short and Long Term Debt | 57.5 M | 60.4 M | |
| Short Term Debt | 1.6 M | 1.7 M | |
| Net Debt | 57.5 M | 43.7 M | |
| Net Debt To EBITDA | (4.22) | (4.43) | |
| Debt To Equity | (0.24) | (0.26) | |
| Interest Debt Per Share | 2.87 | 2.02 | |
| Debt To Assets | 26.71 | 37.37 | |
| Long Term Debt To Capitalization | (0.07) | (0.07) | |
| Total Debt To Capitalization | (0.33) | (0.35) | |
| Debt Equity Ratio | (0.24) | (0.26) | |
| Debt Ratio | 26.71 | 37.37 | |
| Cash Flow To Debt Ratio | (0.15) | (0.16) |
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Check out the analysis of ScanTech Financial Statements. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is there potential for Electronic Equipment, Instruments & Components market expansion? Will ScanTech introduce new products? Factors like these will boost the valuation of ScanTech. If investors know ScanTech will grow in the future, the company's valuation will be higher. Understanding fair value requires weighing current performance against future potential. All the valuation information about ScanTech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.88) | Revenue Per Share | Quarterly Revenue Growth 0.655 | Return On Assets | Return On Equity |
The market value of ScanTech AI Systems is measured differently than its book value, which is the value of ScanTech that is recorded on the company's balance sheet. Investors also form their own opinion of ScanTech's value that differs from its market value or its book value, called intrinsic value, which is ScanTech's true underlying value. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. Because ScanTech's market value can be influenced by many factors that don't directly affect ScanTech'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 ScanTech's value and its price as these two are different measures arrived at by different means. Investors typically determine if ScanTech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Meanwhile, ScanTech's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.
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.