Atea Pharmaceuticals Current Financial Leverage

AVIR -  USA Stock  

USD 25.04  0.69  2.83%

Atea Pharmaceuticals' financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Atea Pharmaceuticals' financial risk is the risk to Atea Pharmaceuticals stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Please continue to the analysis of Atea Pharmaceuticals Fundamentals Over Time.

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As of 08/01/2021, Long Term Debt to Equity is likely to grow to 0.007743. Also, Debt to Equity Ratio is likely to grow to 0.62
Given the importance of Atea Pharmaceuticals' capital structure, the first step in the capital decision process is for the management of Atea Pharmaceuticals to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Atea Pharmaceuticals to issue bonds at a reasonable cost.

Atea Pharmaceuticals Financial Leverage Rating

Atea Pharmaceuticals bond ratings play a critical role in determining how much Atea Pharmaceuticals 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 Atea Pharmaceuticals' borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
4  Poor
Beneish M Score

Atea Pharmaceuticals Debt to Cash Allocation

As Atea Pharmaceuticals follows its natural business cycle, the capital allocation decisions will not magically go away. Atea Pharmaceuticals' 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.
As of 08/01/2021, Long Term Debt to Equity is likely to grow to 0.007743. Also, Debt to Equity Ratio is likely to grow to 0.62The company has a current ratio of 2.68, suggesting that it is liquid enough and is able to pay its financial obligations when due.

Atea Pharmaceuticals Receivables Over Time

Atea Pharmaceuticals 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 Atea Pharmaceuticals' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Atea Pharmaceuticals, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a an Atea Pharmaceuticals debt ratio should be compared their industry average or other competing firms.

Atea Pharmaceuticals Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Atea Pharmaceuticals, understanding its historical liability is critical in projecting Atea Pharmaceuticals' future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Atea Pharmaceuticals uses its financing power over time.

Understaning Atea Pharmaceuticals Use of Financial Leverage

Atea Pharmaceuticals financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Atea Pharmaceuticals'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 Atea Pharmaceuticals assets, the company is considered highly leveraged. Understanding the composition and structure of overall Atea Pharmaceuticals 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.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Long Term Debt to Equity 0.00615  0.007743 
Debt to Equity Ratio 0.58  0.62 
Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focused on discovering, developing, and commercializing antiviral therapeutics for patients suffering from viral infections. The company was incorporated in 2012 and is headquartered in Boston, Massachusetts. Atea Pharmaceuticals operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs people.

Atea Pharmaceuticals Investors Sentiment

The influence of Atea Pharmaceuticals' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Atea Pharmaceuticals. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - AVIR

Atea Pharmaceuticals Investor Sentiment

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Pair Trading with Atea Pharmaceuticals

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 Atea Pharmaceuticals 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 Atea Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.

Atea Pharmaceuticals Pair Correlation

Equities Pair Trading Analysis

Please continue to the analysis of Atea Pharmaceuticals Fundamentals Over Time. Note that the Atea Pharmaceuticals information on this page should be used as a complementary analysis to other Atea Pharmaceuticals' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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When running Atea Pharmaceuticals price analysis, check to measure Atea Pharmaceuticals' 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 Atea Pharmaceuticals is operating at the current time. Most of Atea Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Atea Pharmaceuticals' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Atea Pharmaceuticals' price. Additionally, you may evaluate how the addition of Atea Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
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The market value of Atea Pharmaceuticals is measured differently than its book value, which is the value of Atea Pharmaceuticals that is recorded on the company's balance sheet. Investors also form their own opinion of Atea Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Atea Pharmaceuticals' 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 Atea Pharmaceuticals' market value can be influenced by many factors that don't directly affect Atea Pharmaceuticals underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Atea Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine Atea Pharmaceuticals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atea Pharmaceuticals' 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.