Netlist Current Financial Leverage

NLST -  USA Stock  

USD 8.37  0.16  1.95%

Netlist'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. Netlist's financial risk is the risk to Netlist 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 Netlist Fundamentals Over Time.

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Debt Non Current is likely to gain to about 7.6 M in 2021, whereas Total Debt is likely to drop slightly above 18.9 M in 2021.

Netlist Current Financial Burden

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

Asset vs Debt

Equity vs Debt

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

Netlist Financial Leverage Rating

Netlist bond ratings play a critical role in determining how much Netlist 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 Netlist's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
4  Poor
Beneish M Score

Netlist Debt to Cash Allocation

As Netlist follows its natural business cycle, the capital allocation decisions will not magically go away. Netlist'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 currently holds 21.06 M in liabilities with Debt to Equity (D/E) ratio of 3.09, implying the company greatly relies on financing operations through barrowing. Netlist has a current ratio of 0.88, indicating that it has a negative working capital and may not be able to pay financial obligations when due.

Netlist Total Assets Over Time

Netlist Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Netlist 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.

Netlist Debt Ratio

    
  79.48   
It appears most of the Netlist's assets are financed through 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 Netlist's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Netlist, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Netlist debt ratio should be compared their industry average or other competing firms.
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Netlist Historical Liabilities

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

Understaning Netlist Use of Financial Leverage

Netlist financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Netlist'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 Netlist assets, the company is considered highly leveraged. Understanding the composition and structure of overall Netlist 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 Debt20.9 M18.9 M
Debt Current20.7 M11.3 M
Debt Non Current146 K7.6 M
Issuance Repayment of Debt Securities884 K660.5 K
Debt to Equity Ratio(10.65) (26.00) 
Netlist, Inc. designs, manufactures, and sells modular memory subsystems for the server, high-performance computing, and communications markets worldwide. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California. Netlist operates under Semiconductors classification in the United States and is traded on OTC Exchange. It employs 70 people.

Netlist Investors Sentiment

The influence of Netlist'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 Netlist. 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 - NLST

Netlist Investor Sentiment

Most of Macroaxis users are now bullish on Netlist. What is your trading attitude regarding investing in Netlist? Are you bullish or bearish?
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98% Bullish
2% Bearish
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Additionally, see the analysis of Netlist Fundamentals Over Time. Note that the Netlist information on this page should be used as a complementary analysis to other Netlist'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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