Lixte Biotech Current Financial Leverage

LIXT -  USA Stock  

USD 2.79  0.13  4.89%

Lixte Biotech'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. Lixte Biotech's financial risk is the risk to Lixte Biotech 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).
Additionally, see the analysis of Lixte Biotech Fundamentals Over Time.

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

Lixte Biotech Financial Leverage Rating

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

Lixte Biotech Hlds Debt to Cash Allocation

As Lixte Biotech Hlds follows its natural business cycle, the capital allocation decisions will not magically go away. Lixte Biotech'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 has a current ratio of 31.9, suggesting that it is liquid enough and is able to pay its financial obligations when due.

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

Lixte Biotech Hlds Historical Debt Patterns

Understaning Lixte Biotech Use of Financial Leverage

Lixte Biotech financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Lixte Biotech'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 Lixte Biotech assets, the company is considered highly leveraged. Understanding the composition and structure of overall Lixte Biotech 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.
Lixte Biotechnology Holdings, Inc. operates as a drug discovery company that uses biomarker technology to identify enzyme targets related with serious common diseases and designs novel compounds to attack those targets. The company was incorporated in 2005 and is based in East Setauket, New York. Lixte Biotech operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 3 people.

Lixte Biotech Investors Sentiment

The influence of Lixte Biotech'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 Lixte. 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 - LIXT

Lixte Biotech Hlds Investor Sentiment

Macroaxis portfolio users are evenly split in their trading attitude regarding investing in Lixte Biotech Hlds. What is your trading attitude regarding investing in Lixte Biotech Hlds? Are you bullish or bearish?
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Additionally, see the analysis of Lixte Biotech Fundamentals Over Time. Note that the Lixte Biotech Hlds information on this page should be used as a complementary analysis to other Lixte Biotech'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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