The company currently holds 9.62
M in liabilities with Debt to Equity (D/E) ratio of 0.57, which is about average as compared to similar companies. Marin Software has a current ratio of 1.72, which is within standard range for the sector.
We provide investment recommendation to complement the last-minute
expert consensus on Marin Software. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Marin Software financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Marin Software, including all of Marin Software's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Marin Software assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Marin Software debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Marin Total Debt
Marin Software liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Marin Software has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Marin Software balance sheet include debt obligations and money owed to different Marin Software vendors, workers, and loan providers. Below is the chart of Marin main long-term debt accounts currently reported on its balance sheet.
You can use Marin Software
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Marin Software's Liquidity
Marin Software
financial leverage refers to using borrowed capital as a funding source to finance Marin Software ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Marin Software 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 Marin Software'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 Marin Software'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 Marin Software's total debt and its cash.
Breaking down the case for Marin Software
The entity reported the previous year's revenue of 27.63
M. Net Loss for the year was (12.29
M) with profit before overhead, payroll, taxes, and interest of 12.57
M.
Liabilities Breakdown
14.9 M
Current Liabilities
5.8 M
Long-Term Liabilities
| Total Liabilities | 23.05 Million |
| Current Liabilities | 14.86 Million |
| Long-Term Liabilities | 5.81 Million |
Marin Software latest slide is serious
Marin Software latest semi variance surges over 72.33. Marin Software is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Marin Software implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Marin Software's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Marin Software's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Whereas some other entities under the software—application industry are still a bit expensive, Marin Software may offer a potential longer-term growth to institutional investors. On the whole, as of the 31st of July 2021, we see that Marin Software almost mirrors the market. The company is
overvalued with
below average chance of bankruptcy within the next 24 months. Our concluding 90 days buy-or-sell advice on the company is
Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Marin Software. Please refer to our
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