TMC The Debt
| TMC Stock | USD 0.84 0.01 1.20% |
TMC the metals holds a debt-to-equity ratio of 1.663. The current year's Interest Debt Per Share is expected to grow to 0.000005, whereas Net Debt is forecasted to decline to (7.2 M). With a high degree of financial leverage come high-interest payments, which usually reduce TMC The's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
TMC The'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. TMC The'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 TMC Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect TMC The's stakeholders.
For most companies, including TMC The, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for TMC the metals, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, TMC The'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 173.766 | Book Value 0.036 | Return On Assets (0.84) | Return On Equity (5.30) |
TMC |
TMC The Bond Ratings
TMC the metals financial ratings play a critical role in determining how much TMC The 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 TMC The's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (3.02) | Unlikely Manipulator | View |
TMC the metals Debt to Cash Allocation
As TMC the metals follows its natural business cycle, the capital allocation decisions will not magically go away. TMC The'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.
TMC the metals has 14 M in debt with debt to equity (D/E) ratio of 1.66, which is OK given its current industry classification. TMC the metals has a current ratio of 5.44, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for TMC to invest in growth at high rates of return. TMC The Total Assets Over Time
TMC The 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 TMC The's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of TMC The, which in turn will lower the firm's financial flexibility.TMC The Corporate Bonds Issued
Most TMC bonds can be classified according to their maturity, which is the date when TMC the metals 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.
TMC Net Debt
Net Debt |
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Understaning TMC The Use of Financial Leverage
TMC The's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures TMC The's total debt position, including all outstanding debt obligations, and compares it with TMC The's equity. Financial leverage can amplify the potential profits to TMC The's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if TMC The is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -6.8 M | -7.2 M | |
| Long Term Debt | 60.6 M | 45.1 M | |
| Long Term Debt Total | 60.6 M | 45.1 M | |
| Short and Long Term Debt Total | 12.6 M | 11.2 M | |
| Net Debt To EBITDA | (0.10) | (0.09) |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether TMC the metals is a strong investment it is important to analyze TMC The'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 TMC The's future performance. For an informed investment choice regarding TMC Stock, refer to the following important reports:Check out the analysis of TMC The Fundamentals Over Time. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Diversified Metals & Mining 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 TMC The. If investors know TMC 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 TMC The listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.33) | Return On Assets (0.84) | Return On Equity (5.30) |
The market value of TMC the metals is measured differently than its book value, which is the value of TMC that is recorded on the company's balance sheet. Investors also form their own opinion of TMC The's value that differs from its market value or its book value, called intrinsic value, which is TMC The'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 TMC The's market value can be influenced by many factors that don't directly affect TMC The'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 TMC The's value and its price as these two are different measures arrived at by different means. Investors typically determine if TMC The is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TMC The'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.