Senti Biosciences has liabilities totaling $37.67 million and a Debt to Equity (D/E) ratio of 0.2, indicating a conservative approach to borrowing. The company has a performance score of 7 out of 100, suggesting room for improvement. With a beta of -3.81, Senti Biosciences is highly volatile compared to the market. Typically, when the market rises, the stock's returns may decrease significantly. However, during market downturns, Senti Biosciences might perform better than the broader market. To assess potential future returns, consider analyzing Senti Biosciences' value at risk, along with the relationship between its skewness and day median price.
Key Takeaways
Trading Senti Biosciences stock with leverage can be a double-edged sword, especially given its high coefficient of variation at
1K, indicating significant volatility. With an end period cash flow of 39.4M, investors should weigh the potential for high returns against the risks of substantial fluctuations in stock value.
Senti Biosciences financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Senti Biosciences, including all of Senti Biosciences'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 Senti Biosciences assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Senti Biosciences 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 Senti Total Debt
Senti Biosciences liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Senti Biosciences 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 Senti Biosciences balance sheet include debt obligations and money owed to different Senti Biosciences vendors, workers, and loan providers. Below is the chart of Senti main long-term debt accounts currently reported on its balance sheet.
You can use Senti Biosciences
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Senti Biosciences's Liquidity
Senti Biosciences
financial leverage refers to using borrowed capital as a funding source to finance Senti Biosciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Senti Biosciences 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 Senti Biosciences' 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 Senti Biosciences' 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 Senti Biosciences's total debt and its cash.
Detailed Perspective On Senti Biosciences
Senti Biosciences reported the previous year's revenue of 2.56
M. Net Loss for the year was (71.06
M) with loss before overhead, payroll, taxes, and interest of (29.78
M).
Asset Breakdown
43.2 M
Non Current Assets Total
62.6 M
Total Current Assets
| Total Assets | 105.86 Million |
| Net Tangible Assets | 153.67 Million |
| Non Current Assets Total | 43.17 Million |
| Non Currrent Assets Other | 2.13 Million |
| Other Assets | 0.95 |
| Other Current Assets | 18.45 Million |
| Total Current Assets | 62.58 Million |
Debt can be a double-edged sword for companies, offering both opportunities and risks.
Senti Biosciences, trading under NASDAQ: SNTI, is navigating this delicate balance with a total debt of $37.67 million against a market capitalization of $45.89 million. Despite its innovative strides in biotechnology, particularly in developing next-generation cell and gene therapies, the company faces significant financial challenges, including an operating loss of 92.7 million. With a probability of bankruptcy at 90.97%, potential investors should weigh the company's promising technology against its financial vulnerabilities..
Will Senti Biosciences continue to go frantic?
Senti Biosciences is navigating a challenging period, as shown by its Sortino ratio dropping to 0.53. This figure highlights the stock's recent erratic performance, with returns not sufficiently compensating for the risks involved. Investors should tread carefully, as this low ratio suggests that the stock's volatility could lead to unpredictable outcomes. It's crucial to keep an eye on any developments that might stabilize or further unsettle its path. The stock is showing above-average volatility, which can significantly impact its price, especially during market downturns.
This heightened volatility often prompts investors to adjust their portfolios, seeking stability by diversifying into other assets as prices fluctuate.Considering Senti Biosciences' focus on pioneering cell and gene therapies, the company is positioned in a promising sector with significant growth potential. However, the financial landscape reveals a mixed picture. With a valuation real value of 4.53 and a market value of 5.5, there is a slight discrepancy that investors should be mindful of. The analyst consensus leans towards a "Buy," indicating confidence in Senti's future prospects, yet the highest estimated target price is only 4.44, suggesting limited upside in the near term. As Senti continues to develop its innovative therapies, potential investors should weigh these factors carefully, balancing the company's cutting-edge technology against its current financial metrics..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Senti Biosciences. Please refer to our
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