Radiant Logistics Current Debt
| RLGT Stock | USD 5.28 0.04 0.76% |
Radiant Logistics holds a debt-to-equity ratio of 0.862. At this time, Radiant Logistics' Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 113.6 M in 2024, whereas Short and Long Term Debt is likely to drop slightly above 4.2 M in 2024. Radiant Logistics' financial risk is the risk to Radiant Logistics stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Radiant Logistics' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Radiant Logistics' 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 Radiant Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Radiant Logistics' stakeholders.
For most companies, including Radiant Logistics, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Radiant Logistics the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Price Book 1.1794 | Book Value 4.482 | Operating Margin (0) | Profit Margin 0.0073 | Return On Assets 0.0118 |
Radiant |
Radiant Logistics Financial Leverage Rating
Radiant Logistics bond ratings play a critical role in determining how much Radiant Logistics 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 Radiant Logistics' borrowing costs.| Piotroski F Score | 6 Healthy |
| Beneish M Score | -2.13 Possible Manipulator |
Radiant Logistics Debt to Cash Allocation
As Radiant Logistics follows its natural business cycle, the capital allocation decisions will not magically go away. Radiant Logistics' decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies 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.
Radiant Logistics currently holds 118.51 M in liabilities with Debt to Equity (D/E) ratio of 0.86, which is about average as compared to similar companies. Radiant Logistics has a current ratio of 1.58, which is within standard range for the sector. Note, when we think about Radiant Logistics' use of debt, we should always consider it together with its cash and equity.Radiant Logistics Total Assets Over Time
Radiant Logistics 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 Radiant Logistics' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Radiant Logistics, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Radiant Logistics debt ratio should be compared their industry average or other competing firms.Radiant Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Radiant Logistics Use of Financial Leverage
Radiant Logistics financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Radiant Logistics's total debt position, including all of 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 Radiant Logistics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Radiant Logistics debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Radiant Logistics' 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 Radiant Logistics' 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).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 136.3 M | 143.1 M | |
| Net Debt | 108.2 M | 113.6 M | |
| Short Term Debt | 11.5 M | 10.9 M | |
| Long Term Debt | 76.7 M | 80.6 M | |
| Long Term Debt Total | 55.3 M | 41.3 M | |
| Short and Long Term Debt | 4.7 M | 4.2 M | |
| Net Debt To EBITDA | 32.52 | 34.14 | |
| Debt To Equity | (1.54) | (1.46) | |
| Interest Debt Per Share | (0.06) | (0.05) | |
| Debt To Assets | 2.57 | 1.94 | |
| Long Term Debt To Capitalization | 2.86 | 3.00 | |
| Total Debt To Capitalization | 2.86 | 3.00 | |
| Debt Equity Ratio | (1.54) | (1.46) | |
| Debt Ratio | 2.57 | 1.94 | |
| Cash Flow To Debt Ratio | (0.62) | (0.59) |
Pair Trading with Radiant Logistics
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Radiant Logistics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Radiant Logistics will appreciate offsetting losses from the drop in the long position's value.Moving together with Radiant Stock
Moving against Radiant Stock
The ability to find closely correlated positions to Radiant Logistics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Radiant Logistics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Radiant Logistics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Radiant Logistics to buy it.
The correlation of Radiant Logistics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Radiant Logistics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Radiant Logistics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Radiant Logistics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Radiant Stock Analysis
When running Radiant Logistics' price analysis, check to measure Radiant Logistics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Radiant Logistics is operating at the current time. Most of Radiant Logistics' value examination focuses on studying past and present price action to predict the probability of Radiant Logistics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Radiant Logistics' price. Additionally, you may evaluate how the addition of Radiant Logistics to your portfolios can decrease your overall portfolio volatility.
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.