Liabilities Breakdown
821.6 K
Current Liabilities
3.1 M
Long-Term Liabilities
| Total Liabilities | 4.01 Million | |
| Current Liabilities | 821,646 | |
| Long-Term Liabilities | 3.05 Million |
Will ARCH THERAPEUTICS (OTC:ARTH) shareholders stop to trade in December?
 | By Gabriel Shpitalnik | Macroaxis Story |
ARCH THERAPEUTICS INC is scheduled to announce its earnings today. The next earnings report is expected on the 4th of February 2021. ARCH THERAPEUTICS Invested Capital Average is most likely to increase significantly in the upcoming years. The last year's value of Invested Capital Average was reported at 149,109. The current Market Capitalization is estimated to increase to about 57 M, while Average Assets are projected to decrease to roughly 3.6 M. While some millenniums are indifferent towards healthcare space, it makes sense to concentrate on ARCH THERAPEUTICS INC as a unique investment alternative. I will address a few possible reasons stockholders do not currently respect this otc stock.
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Reviewed by Michael Smolkin
This firm currently holds 726.3 K in liabilities with Debt to Equity (D/E) ratio of 0.31, which is about average as compared to similar companies. The company has a current ratio of 5.58, suggesting that it is liquid enough and is able to pay its financial obligations when due. Arch Therapeutics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Arch Therapeutics, including all of Arch Therapeutics's 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 Arch Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Arch Therapeutics debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Watch out for price decline
Please consider monitoring Arch Therapeutics on a daily basis if you are holding a position in it. Arch Therapeutics is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Arch Therapeutics stock to be traded above the $1 level to remain listed. If Arch Therapeutics otc stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Arch Therapeutics's Liquidity
Arch Therapeutics financial leverage refers to using borrowed capital as a funding source to finance Arch Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arch Therapeutics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Arch Therapeutics' 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 Arch Therapeutics' 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). Please check the breakdown between Arch Therapeutics's total debt and its cash.
Detailed Perspective On Arch Therapeutics
The current indifference towards the small price fluctuations of ARCH THERAPEUTICS INC could raise concerns from stockholders as the firm it trading at a share price of 0.18 on 385,900 in volume. The company management teams did not add any value to ARCH THERAPEUTICS INC investors in October. However, most investors can still diversify their portfolios with ARCH THERAPEUTICS INC to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.39. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from ARCH THERAPEUTICS INC partners.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Arch Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.