First Graphene Current Debt
FGR Stock | 0.06 0 1.75% |
First Graphene holds a debt-to-equity ratio of 0.0. At this time, First Graphene's Net Debt is comparatively stable compared to the past year. Short Term Debt is likely to gain to about 3.9 M in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 2.8 M in 2024. First Graphene's financial risk is the risk to First Graphene stockholders that is caused by an increase in debt.
At this time, First Graphene's Net Debt is comparatively stable compared to the past year. Short Term Debt is likely to gain to about 3.9 M in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 2.8 M in 2024. First |
First Graphene Financial Leverage Rating
First Graphene bond ratings play a critical role in determining how much First Graphene 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 First Graphene's borrowing costs.First Graphene Total Assets Over Time
First Graphene 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 First Graphene's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of First Graphene, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a First Graphene debt ratio should be compared their industry average or other competing firms.First Short Long Term Debt Total
Short Long Term Debt Total |
|
Understaning First Graphene Use of Financial Leverage
First Graphene financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures First Graphene'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 First Graphene assets, the company is considered highly leveraged. Understanding the composition and structure of overall First Graphene 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 First Graphene's 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 First Graphene's 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 | 3.7 M | 2.8 M | |
Net Debt | 1.1 M | 1.1 M | |
Long Term Debt | 9.9 K | 9.4 K | |
Short Term Debt | 3.7 M | 3.9 M | |
Long Term Debt Total | 0.00 | 0.00 | |
Short and Long Term Debt | 4.2 M | 2.8 M |
Pair Trading with First Graphene
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 First Graphene 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 First Graphene will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to First Graphene could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Graphene 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 First Graphene - 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 First Graphene to buy it.
The correlation of First Graphene 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 First Graphene moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Graphene 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 First Graphene 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.Check out the analysis of First Graphene Fundamentals Over Time. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for First Stock analysis
When running First Graphene's price analysis, check to measure First Graphene'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 First Graphene is operating at the current time. Most of First Graphene's value examination focuses on studying past and present price action to predict the probability of First Graphene's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Graphene's price. Additionally, you may evaluate how the addition of First Graphene to your portfolios can decrease your overall portfolio volatility.
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |
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.