Berkeley Lights has 28.2
M in debt with debt to equity (D/E) ratio of 0.37, which is OK given its current industry classification. This firm has a current ratio of 5.16, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The company has Net Profit Margin of
(38.94) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of
(36.98) %, which entails that for every $100 of revenue, it lost -0.37.
Berkeley LightsInc financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Berkeley LightsInc, including all of Berkeley LightsInc'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 Berkeley LightsInc assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Berkeley LightsInc 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 Berkeley LightsInc on a daily basis if you are holding a position in it. Berkeley LightsInc is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Berkeley LightsInc stock to be traded above the $1 level to remain listed. If Berkeley LightsInc 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 Berkeley LightsInc's Liquidity
Berkeley LightsInc
financial leverage refers to using borrowed capital as a funding source to finance Berkeley LightsInc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Berkeley LightsInc 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 Berkeley LightsInc'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 Berkeley LightsInc'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 Berkeley LightsInc's total debt and its cash.
An Additional Perspective On Berkeley LightsInc
The big decline in price over the last few months for Berkeley Lights could raise concerns from stockholders as the firm it trading at a share price of
27.11 on very low momentum in volume. The company executives failed to add value to investors and positioning the firm supply of money to exploit market volatility in
August. However, diversifying your holdings with Berkeley Lights or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.76. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Berkeley Lights partners.
Asset Breakdown
| Total Assets | 117.81 Million |
| Current Assets | 97.13 Million |
| Assets Non Current | 27.25 Million |
Will Berkeley Lights current rise continue?
Current value at risk is at -6.53. Berkeley Lights exhibits very low volatility with skewness of -0.25 and kurtosis of 4.24. However, we advise investors to further study Berkeley Lights technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Berkeley Lights' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Berkeley Lights' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Take On Berkeley Lights
While other companies within the biotechnology industry are still a little expensive, even after the recent corrections, Berkeley Lights may offer a potential longer-term growth to stockholders. The inconsistency in the assessment between current Berkeley valuation and our trade advice on Berkeley Lights is due to the recent market swings and your selection of investing horizon. 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 Berkeley Lights.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Berkeley LightsInc. Please refer to our
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