This firm has 871
K in debt with debt to equity (D/E) ratio of 0.0, which may show that Bellus Health is not taking advantage of profits from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bellus Health has an asset utilization ratio of 0.0407 percent. This implies that the company is making $4.07E-4 for each dollar of assets. An increasing asset utilization means that Bellus Health is more efficient with each dollar of assets it utilizes for everyday operations.
BELLUS Health financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of BELLUS Health, including all of BELLUS Health'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 BELLUS Health assets, the company is considered highly leveraged. Understanding the
composition and structure of overall BELLUS Health 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.
How important is BELLUS Health's Liquidity
BELLUS Health
financial leverage refers to using borrowed capital as a funding source to finance BELLUS Health ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BELLUS Health 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 BELLUS Health'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 BELLUS Health'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 BELLUS Health's total debt and its cash.
An Additional Perspective On BELLUS Health
The newest price gain of Bellus Health could raise concerns from private investors as the firm is trading at a share price of
7.97 on
885,276 in volume. The company executives may have good odds in positioning the firm resources to exploit
market volatility in
July. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.79. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Bellus Health partners.
Asset Breakdown
| Total Assets | 334.04 Million |
| Current Assets | 278.59 Million |
| Assets Non Current | 55.45 Million |
| Tax Assets | 1.14 Million |
Bellus may start a correction in July
The kurtosis is down to 1.97 as of today. Bellus Health exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Bellus Health individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Bellus Health future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bellus Health's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bellus Health's 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.
Bellus Health Implied Volatility
Bellus Health's implied volatility exposes the market's sentiment of Bellus Health stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bellus Health's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bellus Health stock will not fluctuate a lot when Bellus Health's options are near their expiration.
The Current Takeaway on Bellus Health Investment
Whereas few other entities under the biotechnology industry are still a bit expensive, Bellus Health may offer a potential longer-term growth to private investors. While some private investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Bellus Health.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of BELLUS Health. Please refer to our
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