GCM Mining Corp Morgan Bond
TPRFFDelisted Stock | USD 2.59 0.04 1.52% |
GCM Mining Corp holds a debt-to-equity ratio of 0.624. . GCM Mining's financial risk is the risk to GCM Mining stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
GCM Mining'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. GCM Mining's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the OTC Stock is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps GCM OTC Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect GCM Mining's stakeholders.
For most companies, including GCM Mining, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for GCM Mining Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, GCM Mining's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
GCM |
Given the importance of GCM Mining's capital structure, the first step in the capital decision process is for the management of GCM Mining to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of GCM Mining Corp to issue bonds at a reasonable cost.
Popular Name | GCM Mining Morgan Stanley 3591 |
Equity ISIN Code | CA38501D8089 |
Bond Issue ISIN Code | US61744YAK47 |
S&P Rating | Others |
Maturity Date | 22nd of July 2028 |
Issuance Date | 24th of July 2017 |
Coupon | 3.591 % |
GCM Mining Corp Outstanding Bond Obligations
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Understaning GCM Mining Use of Financial Leverage
GCM Mining's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures GCM Mining's total debt position, including all outstanding debt obligations, and compares it with GCM Mining's equity. Financial leverage can amplify the potential profits to GCM Mining's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if GCM Mining is unable to cover its debt costs.
Aris Mining Corporation together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold and silver properties primarily in Colombia. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation on September 26, 2022. Aris Mining operates under Other Precious Metals Mining classification in the United States and is traded on OTC Exchange. It employs 2081 people. Please read more on our technical analysis page.
Currently Active Assets on Macroaxis
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as signals in census. Note that the GCM Mining Corp information on this page should be used as a complementary analysis to other GCM Mining's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Consideration for investing in GCM OTC Stock
If you are still planning to invest in GCM Mining Corp check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the GCM Mining's history and understand the potential risks before investing.
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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.