Indaptus Therapeutics Current Debt

INDP Stock  USD 2.42  0.07  2.81%   
Indaptus Therapeutics holds a debt-to-equity ratio of 0.004. At this time, Indaptus Therapeutics' Debt Ratio is relatively stable compared to the past year. . Indaptus Therapeutics' financial risk is the risk to Indaptus Therapeutics stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Indaptus Therapeutics' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Indaptus Therapeutics' 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 Indaptus Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Indaptus Therapeutics' stakeholders.
For most companies, including Indaptus Therapeutics, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Indaptus Therapeutics, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Indaptus Therapeutics' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
2.5451
Book Value
1.096
Return On Assets
(0.58)
Return On Equity
(0.98)
At this time, Indaptus Therapeutics' Total Current Liabilities is relatively stable compared to the past year. As of 06/13/2024, Liabilities And Stockholders Equity is likely to grow to about 23.5 M, while Non Current Liabilities Total is likely to drop slightly above 69.7 K.
  
Check out the analysis of Indaptus Therapeutics Fundamentals Over Time.
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Indaptus Therapeutics Financial Rating

Indaptus Therapeutics financial ratings play a critical role in determining how much Indaptus Therapeutics 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 Indaptus Therapeutics' borrowing costs.
Piotroski F Score
3
FrailView
Beneish M Score
(5.31)
Unlikely ManipulatorView

Indaptus Therapeutics Debt to Cash Allocation

Indaptus Therapeutics currently holds 175.05 K in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the company is not taking enough advantage from borrowing. Indaptus Therapeutics has a current ratio of 9.0, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Indaptus Therapeutics' use of debt, we should always consider it together with its cash and equity.

Indaptus Therapeutics Total Assets Over Time

Indaptus Therapeutics Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Indaptus Therapeutics 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.

Indaptus Therapeutics Debt Ratio

    
  1.22   
It seems most of the Indaptus Therapeutics' 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 Indaptus Therapeutics' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Indaptus Therapeutics, which in turn will lower the firm's financial flexibility.

Indaptus Short Long Term Debt Total

Short Long Term Debt Total

309,952

At this time, Indaptus Therapeutics' Short and Long Term Debt Total is relatively stable compared to the past year.

Understaning Indaptus Therapeutics Use of Financial Leverage

Indaptus Therapeutics financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Indaptus Therapeutics'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 Indaptus Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Indaptus Therapeutics 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 Indaptus Therapeutics' 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 Indaptus Therapeutics' 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 ReportedProjected for Next Year
Short and Long Term Debt Total175.1 K310 K
Net Debt-13.2 M-13.8 M
Short Term Debt101.7 K147.1 K
Net Debt To EBITDA 0.81  1.15 
Debt To Equity 0.01  0.02 
Interest Debt Per Share 0.02  0.02 
Debt To Assets 0.01  0.01 
Total Debt To Capitalization 0.01  0.02 
Debt Equity Ratio 0.01  0.02 
Debt Ratio 0.01  0.01 
Cash Flow To Debt Ratio(76.58)(80.41)
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Additional Tools for Indaptus Stock Analysis

When running Indaptus Therapeutics' price analysis, check to measure Indaptus Therapeutics' 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 Indaptus Therapeutics is operating at the current time. Most of Indaptus Therapeutics' value examination focuses on studying past and present price action to predict the probability of Indaptus Therapeutics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Indaptus Therapeutics' price. Additionally, you may evaluate how the addition of Indaptus Therapeutics 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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.