Eurodry Current Financial Leverage

EDRY -  USA Stock  

USD 22.35  0.41  1.80%

Eurodry's 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. Eurodry's financial risk is the risk to Eurodry 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).
Continue to the analysis of Eurodry Fundamentals Over Time.

Search Bonds 

 
Refresh
Eurodry Total Debt is fairly stable at the moment as compared to the past year. Eurodry reported Total Debt of 51.11 Million in 2020. Debt Non Current is likely to rise to about 43 M in 2021, whereas Debt Current is likely to drop slightly above 11.5 M in 2021.

Eurodry Current Financial Burden

Eurodry's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Eurodry's 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 Eurodry Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Eurodry's stakeholders.

Asset vs Debt

Equity vs Debt

Given the importance of Eurodry's capital structure, the first step in the capital decision process is for the management of Eurodry 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 Eurodry to issue bonds at a reasonable cost.

Eurodry Financial Leverage Rating

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

Eurodry Debt to Cash Allocation

As Eurodry follows its natural business cycle, the capital allocation decisions will not magically go away. Eurodry's 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.
The company currently holds 51.83 M in liabilities with Debt to Equity (D/E) ratio of 1.02, which is about average as compared to similar companies. Eurodry has a current ratio of 0.3, indicating that it has a negative working capital and may not be able to pay financial obligations when due.

Eurodry Total Assets Over Time

Eurodry Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Eurodry uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Eurodry Debt Ratio

    
  45.93   
It appears slightly above 54% of Eurodry's assets are financed through equity. 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 Eurodry's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Eurodry, which in turn will lower the firm's financial flexibility. Like all other financial ratios, an Eurodry debt ratio should be compared their industry average or other competing firms.
Share Download
Share Download

Eurodry Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Eurodry, understanding its historical liability is critical in projecting Eurodry's 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 Eurodry uses its financing power over time.

Understaning Eurodry Use of Financial Leverage

Eurodry financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Eurodry'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 Eurodry assets, the company is considered highly leveraged. Understanding the composition and structure of overall Eurodry 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
Total Debt51.1 M54.6 M
Debt Current13.8 M11.5 M
Debt Non Current37.3 M43 M
Issuance Repayment of Debt Securities-5.5 M-5.7 M
Debt to Equity Ratio 1.65  1.57 
EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece. Eurodry operates under Marine Shipping classification in the United States and is traded on NASDAQ Exchange.

Eurodry Investors Sentiment

The influence of Eurodry's 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 Eurodry. 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 - EDRY

Eurodry Investor Sentiment

Macroaxis portfolio users are insensible in their opinion about investing in Eurodry. What is your opinion about investing in Eurodry? Are you bullish or bearish?
Bullish
Bearish
50% Bullish
50% Bearish
Skip

Pair Trading with Eurodry

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

Eurodry Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Eurodry and Genco Shipping Trading. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  
Continue to the analysis of Eurodry Fundamentals Over Time. Note that the Eurodry information on this page should be used as a complementary analysis to other Eurodry's 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for Eurodry Stock analysis

When running Eurodry price analysis, check to measure Eurodry's 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 Eurodry is operating at the current time. Most of Eurodry's value examination focuses on studying past and present price action to predict the probability of Eurodry's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Eurodry's price. Additionally, you may evaluate how the addition of Eurodry to your portfolios can decrease your overall portfolio volatility.
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
The market value of Eurodry is measured differently than its book value, which is the value of Eurodry that is recorded on the company's balance sheet. Investors also form their own opinion of Eurodry's value that differs from its market value or its book value, called intrinsic value, which is Eurodry's 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 Eurodry's market value can be influenced by many factors that don't directly affect Eurodry 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 Eurodry's value and its price as these two are different measures arrived at by different means. Investors typically determine Eurodry value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eurodry's 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.