UDS Current Debt
| UDSG Stock | USD 0.0001 0.00 0.00% |
The current Long Term Debt is estimated to decrease to about 25.7 K. The current Short and Long Term Debt is estimated to decrease to about 367.3 K. UDS's financial risk is the risk to UDS stockholders that is caused by an increase in debt.
Given that UDS'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 UDS 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 UDS to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, UDS is said to be less leveraged. If creditors hold a majority of UDS's assets, the Company is said to be highly leveraged.
The current Total Current Liabilities is estimated to decrease to about 5.3 M. The UDS's current Change To Liabilities is estimated to increase to about (58.6 K)UDS |
UDS Financial Rating
UDS Group financial ratings play a critical role in determining how much UDS 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 UDS's borrowing costs.| Beneish M Score | (37.34) | Unlikely Manipulator | View |
UDS Group Debt to Cash Allocation
Many companies such as UDS, 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.
UDS Group currently holds 433.94 K in liabilities. Note, when we think about UDS's use of debt, we should always consider it together with its cash and equity.UDS Total Assets Over Time
UDS 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 UDS's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of UDS, which in turn will lower the firm's financial flexibility.Understaning UDS Use of Financial Leverage
UDS's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures UDS's total debt position, including all outstanding debt obligations, and compares it with UDS's equity. Financial leverage can amplify the potential profits to UDS's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if UDS is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 28.9 K | 25.7 K | |
| Short and Long Term Debt | 499 K | 367.3 K | |
| Short Term Debt | 499 K | 367.3 K |
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When determining whether UDS Group is a strong investment it is important to analyze UDS'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 UDS's future performance. For an informed investment choice regarding UDS Stock, refer to the following important reports:Check out the analysis of UDS Fundamentals Over Time. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Is Application Software 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 UDS. If investors know UDS 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 UDS listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.04) | Return On Assets (11.55) |
The market value of UDS Group is measured differently than its book value, which is the value of UDS that is recorded on the company's balance sheet. Investors also form their own opinion of UDS's value that differs from its market value or its book value, called intrinsic value, which is UDS'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 UDS's market value can be influenced by many factors that don't directly affect UDS'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 UDS's value and its price as these two are different measures arrived at by different means. Investors typically determine if UDS is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, UDS'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.