Perma Fix Current Financial Leverage
| PESI Stock | USD 10.81 0.39 3.48% |
Perma Fix Environmental holds a debt-to-equity ratio of 0.107. As of now, Perma Fix's Short and Long Term Debt Total is decreasing as compared to previous years. The Perma Fix's current Short and Long Term Debt is estimated to increase to about 1.3 M, while Net Debt is forecasted to increase to (1.6 M). Perma Fix's financial risk is the risk to Perma Fix 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).
Asset vs Debt
Equity vs Debt
Perma Fix'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. Perma Fix'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 Perma Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Perma Fix's stakeholders.
For most companies, including Perma Fix, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Perma Fix Environmental Svcs the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Price Book 4.1488 | Book Value 2.885 | Operating Margin 0.003 | Profit Margin 0.0054 | Return On Assets 0.007 |
Perma |
Perma Fix Financial Leverage Rating
Perma Fix Environmental Svcs bond ratings play a critical role in determining how much Perma Fix 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 Perma Fix's borrowing costs.| Piotroski F Score | 8 Strong |
| Beneish M Score | -2.55 Unlikely Manipulator |
Perma Fix Environmental Debt to Cash Allocation
As Perma Fix Environmental Svcs follows its natural business cycle, the capital allocation decisions will not magically go away. Perma Fix'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 5.87 M in liabilities with Debt to Equity (D/E) ratio of 0.11, which may suggest the company is not taking enough advantage from borrowing. Perma Fix Environmental has a current ratio of 1.03, suggesting that it may have difficulties to pay its financial obligations when due. Debt can assist Perma Fix until it has trouble settling it off, either with new capital or with free cash flow. So, Perma Fix's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Perma Fix Environmental sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Perma to invest in growth at high rates of return. When we think about Perma Fix's use of debt, we should always consider it together with cash and equity.Perma Fix Total Assets Over Time
Perma Fix 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 Perma Fix's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Perma Fix, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Perma Fix debt ratio should be compared their industry average or other competing firms.Perma Short Long Term Debt Total
Short Long Term Debt Total |
|
Understaning Perma Fix Use of Financial Leverage
Perma Fix financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Perma Fix'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 Perma Fix assets, the company is considered highly leveraged. Understanding the composition and structure of overall Perma Fix 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 Perma Fix's 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 Perma Fix's 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 Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 5.9 M | 9.5 M | |
| Net Debt | -1.6 M | -1.6 M | |
| Short Term Debt | 1.4 M | 1.4 M | |
| Long Term Debt | 2 M | 1.9 M | |
| Short and Long Term Debt | 773 K | 1.3 M | |
| Long Term Debt Total | 506.7 K | 481.4 K | |
| Net Debt To EBITDA | (0.48) | (0.46) | |
| Debt To Equity | 0.09 | 0.08 | |
| Interest Debt Per Share | 0.28 | 0.27 | |
| Debt To Assets | 0.04 | 0.04 | |
| Long Term Debt To Capitalization | 0.05 | 0.05 | |
| Total Debt To Capitalization | 0.08 | 0.08 | |
| Debt Equity Ratio | 0.09 | 0.08 | |
| Debt Ratio | 0.04 | 0.04 | |
| Cash Flow To Debt Ratio | 1.80 | 1.89 |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Perma Fix in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Perma Fix's short interest history, or implied volatility extrapolated from Perma Fix options trading.
Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Perma Fix Environmental using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
Align your risk with return expectations
Check out the analysis of Perma Fix Fundamentals Over Time. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Complementary Tools for Perma Stock analysis
When running Perma Fix's price analysis, check to measure Perma Fix'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 Perma Fix is operating at the current time. Most of Perma Fix's value examination focuses on studying past and present price action to predict the probability of Perma Fix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Perma Fix's price. Additionally, you may evaluate how the addition of Perma Fix to your portfolios can decrease your overall portfolio volatility.
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets |
Is Perma Fix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Perma Fix. If investors know Perma will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Perma Fix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.48) | Earnings Share 0.07 | Revenue Per Share 6.644 | Quarterly Revenue Growth 0.356 | Return On Assets 0.007 |
The market value of Perma Fix Environmental is measured differently than its book value, which is the value of Perma that is recorded on the company's balance sheet. Investors also form their own opinion of Perma Fix's value that differs from its market value or its book value, called intrinsic value, which is Perma Fix'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 Perma Fix's market value can be influenced by many factors that don't directly affect Perma Fix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Perma Fix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Perma Fix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Perma Fix'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.
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.