Liabilities Breakdown
12.4 M
Current Liabilities
7.5 M
Long-Term Liabilities
| Total Liabilities | 27.76 Million | |
| Current Liabilities | 12.36 Million | |
| Long-Term Liabilities | 7.47 Million | |
| Tax Liabilities | 322,212 |
Will Enservco (NYSEMKT:ENSV) investors stop to drop in October?
 | By Aina Ster | Macroaxis Story |
Enservco Corpporation is scheduled to announce its earnings tomorrow. Enservco Corpporation Current Ratio is fairly stable at the moment as compared to the past year. Enservco Corpporation reported Current Ratio of 0.45 in 2021. Price to Book Value is likely to climb to 2.12 in 2022, whereas Earnings before Tax are likely to drop (8 M) in 2022. While some baby boomers are getting worried about energy space, it is reasonable to focus on Enservco Corpporation as an investment alternative. I will address a few possible reasons sophisticated investors do not currently respect this stock.
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Reviewed by Raphi Shpitalnik
The company currently holds 16.65 M in liabilities with Debt to Equity (D/E) ratio of 3.12, implying the firm greatly relies on financing operations through barrowing. Enservco Corpporation has a current ratio of 0.44, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Enservco Corpporation until it has trouble settling it off, either with new capital or with free cash flow. So, Enservco Corpporation's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Enservco Corpporation sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Enservco to invest in growth at high rates of return. When we think about Enservco Corpporation's use of debt, we should always consider it together with cash and equity.
How important is Enservco's Liquidity
Enservco financial leverage refers to using borrowed capital as a funding source to finance Enservco Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Enservco financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Enservco's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Enservco'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). Please check the breakdown between Enservco's total debt and its cash.
Another Deeper Perspective
The entity reported the previous year's revenue of 15.34 M. Net Loss for the year was (8.04 M) with loss before overhead, payroll, taxes, and interest of (2 M).
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