United Guardian Debt
| UG Stock | USD 9.76 0.01 0.10% |
United Guardian holds a debt-to-equity ratio of 0.08. The United Guardian's current Cash Flow To Debt Ratio is estimated to increase to 484.41, while Short and Long Term Debt Total is projected to decrease to 5,692. . United Guardian's financial risk is the risk to United Guardian stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
United Guardian'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. United Guardian'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 United Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect United Guardian's stakeholders.
For most companies, including United Guardian, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for United Guardian, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, United Guardian'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 3.9366 | Book Value 2.479 | Operating Margin 0.3288 | Profit Margin 0.2637 | Return On Assets 0.1777 |
United |
United Guardian Bond Ratings
United Guardian financial ratings play a critical role in determining how much United Guardian 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 United Guardian's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (2.68) | Unlikely Manipulator | View |
United Guardian Debt to Cash Allocation
Many companies such as United Guardian, 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.
United Guardian reports 1.53 M of total liabilities with total debt to equity ratio (D/E) of 0.08, which may suggest the company is not taking enough advantage from financial leverage. United Guardian has a current ratio of 5.48, indicating that it is in good position to pay out its debt commitments in time. Note however, debt could still be an excellent tool for United to invest in growth at high rates of return. United Guardian Total Assets Over Time
United Guardian Assets Financed by Debt
The debt-to-assets ratio shows the degree to which United Guardian 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.United Guardian Debt Ratio | 0.0421 |
United Guardian Corporate Bonds Issued
Most United bonds can be classified according to their maturity, which is the date when United Guardian 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.
United Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning United Guardian Use of Financial Leverage
United Guardian's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures United Guardian's total debt position, including all outstanding debt obligations, and compares it with United Guardian's equity. Financial leverage can amplify the potential profits to United Guardian's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if United Guardian is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 6 K | 5.7 K | |
| Net Debt | -8.2 M | -7.8 M | |
| Short Term Debt | 19.1 K | 18.2 K | |
| Net Debt To EBITDA | (2.78) | (2.64) | |
| Interest Debt Per Share | 0.41 | 0.25 | |
| Cash Flow To Debt Ratio | 461.34 | 484.41 |
Currently Active Assets on Macroaxis
Check out the analysis of United Guardian Fundamentals Over Time. For more detail on how to invest in United Stock please use our How to Invest in United Guardian guide.You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Is Personal Care 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 United Guardian. If investors know United 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 United Guardian listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.074 | Earnings Share 0.76 | Revenue Per Share 2.679 | Quarterly Revenue Growth 0.279 | Return On Assets 0.1777 |
The market value of United Guardian is measured differently than its book value, which is the value of United that is recorded on the company's balance sheet. Investors also form their own opinion of United Guardian's value that differs from its market value or its book value, called intrinsic value, which is United Guardian'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 United Guardian's market value can be influenced by many factors that don't directly affect United Guardian'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 United Guardian's value and its price as these two are different measures arrived at by different means. Investors typically determine if United Guardian is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, United Guardian'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.