Vivani Medical Current Debt

VANI Stock  USD 2.00  0.03  1.52%   
Vivani Medical holds a debt-to-equity ratio of 0.0. As of now, Vivani Medical's Debt To Assets are decreasing as compared to previous years. The Vivani Medical's current Long Term Debt To Capitalization is estimated to increase to 0.85, while Short Term Debt is projected to decrease to under 903.3 K. With a high degree of financial leverage come high-interest payments, which usually reduce Vivani Medical's Earnings Per Share (EPS).
As of now, Vivani Medical's Debt To Assets are decreasing as compared to previous years. The Vivani Medical's current Long Term Debt To Capitalization is estimated to increase to 0.85, while Short Term Debt is projected to decrease to under 903.3 K.
  
Check out the analysis of Vivani Medical Fundamentals Over Time.
For more detail on how to invest in Vivani Stock please use our How to Invest in Vivani Medical guide.

Vivani Medical Financial Leverage Rating

Vivani Medical bond ratings play a critical role in determining how much Vivani Medical 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 Vivani Medical's borrowing costs.
Piotroski F Score
4  Poor
Beneish M Score

Vivani Medical Debt to Cash Allocation

As Vivani Medical follows its natural business cycle, the capital allocation decisions will not magically go away. Vivani Medical'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 20.7 M in liabilities. Vivani Medical has a current ratio of 1.32, which is within standard range for the sector. Debt can assist Vivani Medical until it has trouble settling it off, either with new capital or with free cash flow. So, Vivani Medical'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 Vivani Medical sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Vivani to invest in growth at high rates of return. When we think about Vivani Medical's use of debt, we should always consider it together with cash and equity.

Vivani Medical Total Assets Over Time

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

Vivani Short Long Term Debt Total

Short Long Term Debt Total

21.73 Million

As of now, Vivani Medical's Short and Long Term Debt Total is increasing as compared to previous years.

Understaning Vivani Medical Use of Financial Leverage

Vivani Medical financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Vivani Medical'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 Vivani Medical assets, the company is considered highly leveraged. Understanding the composition and structure of overall Vivani Medical 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 Vivani Medical'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 Vivani Medical'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 ReportedProjected for Next Year
Short and Long Term Debt Total20.7 M21.7 M
Net Debt42 K44.1 K
Short Term Debt1.4 M903.3 K
Short and Long Term Debt573.3 K509.6 K
Net Debt To EBITDA(0)(0)
Debt To Equity 1.00  1.05 
Interest Debt Per Share 0.41  0.39 
Debt To Assets 0.45  0.61 
Long Term Debt To Capitalization 0.48  0.85 
Total Debt To Capitalization 0.50  0.79 
Debt Equity Ratio 1.00  1.05 
Debt Ratio 0.45  0.61 
Cash Flow To Debt Ratio(1.15)(1.20)
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Currently Active Assets on Macroaxis

When determining whether Vivani Medical offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vivani Medical's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Vivani Medical Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vivani Medical Stock:
Check out the analysis of Vivani Medical Fundamentals Over Time.
For more detail on how to invest in Vivani Stock please use our How to Invest in Vivani Medical guide.
You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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When running Vivani Medical's price analysis, check to measure Vivani Medical'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 Vivani Medical is operating at the current time. Most of Vivani Medical's value examination focuses on studying past and present price action to predict the probability of Vivani Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vivani Medical's price. Additionally, you may evaluate how the addition of Vivani Medical to your portfolios can decrease your overall portfolio volatility.
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Is Vivani Medical'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 Vivani Medical. If investors know Vivani 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 Vivani Medical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.50)
Return On Assets
(0.35)
Return On Equity
(0.79)
The market value of Vivani Medical is measured differently than its book value, which is the value of Vivani that is recorded on the company's balance sheet. Investors also form their own opinion of Vivani Medical's value that differs from its market value or its book value, called intrinsic value, which is Vivani Medical'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 Vivani Medical's market value can be influenced by many factors that don't directly affect Vivani Medical'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 Vivani Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vivani Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vivani Medical'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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.