Liabilities Breakdown
535.8 K
Current Liabilities
Long-Term Liabilities
| Total Liabilities | 581,903 | |
| Current Liabilities | 535,809 | |
| Long-Term Liabilities | 59,947.37 |
Is Artelo Biosciences (NASDAQ:ARTL) having difficulty to pay out its debt?
 | By Raphi Shpitalnik | Macroaxis Story |
Artelo Biosciences is scheduled to announce its earnings tomorrow. The next fiscal year end is expected on the 5th of December 2022. Artelo Biosciences Market Capitalization is relatively stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 27.68 Million. Tangible Asset Value is expected to hike to about 13.1 M this year, although the value of Earnings before Tax will most likely fall to (6.9 M). While some of us are becoming more enthusiastic about healthcare space, let's summarize Artelo Biosciences in greater detail to make a better estimate of its debt utilization. We will summarize if it could be a much better year for Artelo Biosciences shareholders.
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Reviewed by Gabriel Shpitalnik
This firm currently holds 90 K in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the company is not taking enough advantage from borrowing. The company has a current ratio of 23.48, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Artelo Biosciences until it has trouble settling it off, either with new capital or with free cash flow. So, Artelo Biosciences' 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 Artelo Biosciences sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Artelo to invest in growth at high rates of return. When we think about Artelo Biosciences' use of debt, we should always consider it together with cash and equity.Artelo Biosciences financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Artelo Biosciences, including all of Artelo Biosciences'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 Artelo Biosciences assets, the company is considered highly leveraged. Understanding the composition and structure of overall Artelo Biosciences 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 Artelo Biosciences on a daily basis if you are holding a position in it. Artelo Biosciences is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Artelo Biosciences stock to be traded above the $1 level to remain listed. If Artelo Biosciences 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.
Understanding Artelo Total Liabilities
Artelo Biosciences liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Artelo Biosciences has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Artelo Biosciences balance sheet include debt obligations and money owed to different Artelo Biosciences vendors, workers, and loan providers. Below is the chart of Artelo short long-term liabilities accounts currently reported on its balance sheet. You can use Artelo Biosciences financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Artelo Biosciences's Liquidity
Artelo Biosciences financial leverage refers to using borrowed capital as a funding source to finance Artelo Biosciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Artelo Biosciences 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 Artelo Biosciences' 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 Artelo Biosciences' 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 Artelo Biosciences's total debt and its cash.
Detailed Perspective On Artelo Biosciences
Artelo Biosciences reported the previous year's revenue of 212.82 M. Net Loss for the year was (12.11 M) with profit before overhead, payroll, taxes, and interest of 83.01 M.
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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 Raphi Shpitalnik do not own shares of Artelo Biosciences. Please refer to our Terms of Use for any information regarding our disclosure principles.