Par Technology Current Financial Leverage

PAR -  USA Stock  

USD 61.05  1.71  2.72%

Par Technology'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. Par Technology's financial risk is the risk to Par Technology 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 check the analysis of Par Technology Fundamentals Over Time.

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Par Technology Current Financial Burden

Par Technology'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. Par Technology'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 Par Technology Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Par Technology's stakeholders.

Asset vs Debt

Equity vs Debt

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

Par Technology Financial Leverage Rating

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

Par Technology Corp Debt to Cash Allocation

As Par Technology Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Par Technology'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 110.07 M in debt with debt to equity (D/E) ratio of 0.62, which is OK given its current industry classification. Par Technology Corp has a current ratio of 5.32, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.

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

Par Technology Corp Historical Debt Patterns

Understaning Par Technology Use of Financial Leverage

Par Technology financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Par Technology'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 Par Technology assets, the company is considered highly leveraged. Understanding the composition and structure of overall Par Technology 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.
PAR Technology Corporation, together with its subsidiaries, provides point-of-sale solutions to the restaurant and retail industries worldwide. The company was founded in 1968 and is headquartered in New Hartford, New York. Par Technology operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 1008 people.

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Please check the analysis of Par Technology Fundamentals Over Time. Note that the Par Technology Corp information on this page should be used as a complementary analysis to other Par Technology'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 Transaction History module to view history of all your transactions and understand their impact on performance.

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