The company has 143.14
M in debt with debt to equity (D/E) ratio of 2.52, meaning that Build-A-Bear Workshop heavily relies on borrowing funds for operations. Build-A-Bear Workshop has a current ratio of 0.97, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Build A financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Build A, including all of Build A'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 Build A assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Build A 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.
Understanding Build Total Liabilities
Build A Bear liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Build A Bear 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 Build A balance sheet include debt obligations and money owed to different Build A vendors, workers, and loan providers. Below is the chart of Build short long-term liabilities accounts currently reported on its balance sheet.
You can use Build A Bear Workshop
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Build A's Liquidity
Build A
financial leverage refers to using borrowed capital as a funding source to finance Build A Bear Workshop ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Build A 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 Build A'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 Build A'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). Please check the
breakdown between Build A's total debt and its cash.
Breaking down Build A Further
The entity reported the last year's revenue of 266.23
M. Reported Net Loss for the year was (27.29
M) with profit before taxes, overhead, and interest of 153.62
M.
Liabilities Breakdown
79.2 M
Current Liabilities
27.3 M
Long-Term Liabilities
| Total Liabilities | 119.84 Million |
| Current Liabilities | 79.18 Million |
| Long-Term Liabilities | 27.32 Million |
Another 3 percent climb for Build-A-Bear Workshop
Total risk alpha is down to 0.11. It may cause a possible volatility fall.
As of the 10th of March, Build-A-Bear Workshop shows the Mean Deviation of 4.46,
risk adjusted performance of 0.1303, and Downside Deviation of 6.07. Build-A-Bear Workshop
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen
technical drivers for Build-A-Bear Workshop, which can be compared to its rivals. Please confirm
Build-A-Bear Workshop information ratio, as well as the
relationship between the potential upside and
kurtosis to decide if Build-A-Bear Workshop is priced correctly, providing market reflects its regular price of 8.75 per share. Given that Build-A-Bear Workshop has
jensen alpha of 0.8126, we suggest you to validate Build-A-Bear Workshop's prevailing market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Build-A-Bear Workshop
While other entities under the specialty retail industry are still a bit expensive, Build-A-Bear Workshop may offer a potential longer-term growth to sophisticated investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Build-A-Bear as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Build-A-Bear Workshop.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Build A Bear Workshop. Please refer to our
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