Kaleido Biosciences Current Financial Leverage

KLDO -  USA Stock  

USD 5.82  0.15  2.65%

Kaleido Biosciences' 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. Kaleido Biosciences' financial risk is the risk to Kaleido Biosciences 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 see the analysis of Kaleido Biosciences Fundamentals Over Time.

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Kaleido Biosciences Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 21.34 Million. Debt Non Current is expected to rise to about 19.6 M this year, although the value of Debt Current will most likely fall to about 2.4 M.

Kaleido Current Financial Burden

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

Asset vs Debt

Equity vs Debt

Given that Kaleido Biosciences' debt-to-equity ratio measures a company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Kaleido Biosciences is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Kaleido Biosciences to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Kaleido Biosciences is said to be less leveraged. If creditors hold a majority of Kaleido Biosciences' assets, the company is said to be highly leveraged.

Kaleido Biosciences Quarterly Debt to Equity Ratio

0.463Share
Given the importance of Kaleido Biosciences' capital structure, the first step in the capital decision process is for the management of Kaleido Biosciences 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 Kaleido Biosciences to issue bonds at a reasonable cost.

Kaleido Biosciences Financial Leverage Rating

Kaleido Biosciences bond ratings play a critical role in determining how much Kaleido Biosciences 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 Kaleido Biosciences' borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
3  Frail
Beneish M Score

Kaleido Biosciences Debt to Cash Allocation

As Kaleido Biosciences follows its natural business cycle, the capital allocation decisions will not magically go away. Kaleido Biosciences' 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 21.19 M in liabilities with Debt to Equity (D/E) ratio of 0.3, which may suggest the company is not taking enough advantage from borrowing. Kaleido Biosciences has a current ratio of 7.23, suggesting that it is liquid enough and is able to pay its financial obligations when due.

Kaleido Biosciences Total Assets Over Time

Kaleido Biosciences Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Kaleido Biosciences 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.

Kaleido Biosciences Debt Ratio

    
  31.14   
It seems about 68% of Kaleido Biosciences' 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 Kaleido Biosciences' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Kaleido Biosciences, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Kaleido Biosciences debt ratio should be compared their industry average or other competing firms.
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Kaleido Biosciences Historical Liabilities

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

Understaning Kaleido Biosciences Use of Financial Leverage

Kaleido Biosciences financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Kaleido Biosciences'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 Kaleido Biosciences assets, the company is considered highly leveraged. Understanding the composition and structure of overall Kaleido Biosciences 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 Debt21 M21.3 M
Debt Current2.4 M2.4 M
Debt Non Current18.4 M19.6 M
Issuance Repayment of Debt Securities-147 K-150.9 K
Debt to Equity Ratio 1.90  2.04 
Kaleido Biosciences, Inc., a clinical-stage healthcare company, develops microbiome metabolic therapies. The company was incorporated in 2015 and is headquartered in Lexington, Massachusetts. Kaleido Biosciences operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 82 people.

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Please see the analysis of Kaleido Biosciences Fundamentals Over Time. Note that the Kaleido Biosciences information on this page should be used as a complementary analysis to other Kaleido Biosciences' 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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The market value of Kaleido Biosciences is measured differently than its book value, which is the value of Kaleido that is recorded on the company's balance sheet. Investors also form their own opinion of Kaleido Biosciences' value that differs from its market value or its book value, called intrinsic value, which is Kaleido Biosciences' 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 Kaleido Biosciences' market value can be influenced by many factors that don't directly affect Kaleido Biosciences 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 Kaleido Biosciences' value and its price as these two are different measures arrived at by different means. Investors typically determine Kaleido Biosciences value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kaleido Biosciences' 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.