Freeport Resources Current Financial Leverage

FEERF -  USA Stock  

USD 0.14  0.01  7.69%

Freeport Resources' 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. Freeport Resources' financial risk is the risk to Freeport Resources 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 check the analysis of Freeport Resources Fundamentals Over Time.

Freeport Bonds 

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

Freeport Resources Financial Leverage Rating

Freeport Resources bond ratings play a critical role in determining how much Freeport Resources 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 Freeport Resources' borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A

Freeport Resources Debt to Cash Allocation

As Freeport Resources follows its natural business cycle, the capital allocation decisions will not magically go away. Freeport Resources' 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 has a current ratio of 58.08, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due.

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

Understaning Freeport Resources Use of Financial Leverage

Freeport Resources financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Freeport Resources'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 Freeport Resources assets, the company is considered highly leveraged. Understanding the composition and structure of overall Freeport Resources 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.
Freeport Resources Inc., a junior mineral exploration company, engages in the acquisition, exploration, and development of mineral properties in Papua New Guinea and Canada. Freeport Resources Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada. Freeport Resources operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange.

Freeport Resources Investors Sentiment

The influence of Freeport Resources' 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 Freeport. 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 - FEERF

Freeport Resources Investor Sentiment

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Please check the analysis of Freeport Resources Fundamentals Over Time. Note that the Freeport Resources information on this page should be used as a complementary analysis to other Freeport Resources' 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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