Will Bluebird Bio (USA Stocks:BLUE) be in financial trouble before April?

BLUE Stock

USD 3.06 1.26 29.17%

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Bluebird Bio is scheduled to announce its earnings today. The next financial report is expected on the 8th of May 2023. Bluebird Bio Average Equity is projected to increase significantly based on the last few years of reporting. The past year's Average Equity was at 986.04 Million. The current year Enterprise Value is expected to grow to about 565.9 M, whereas Average Assets are forecasted to decline to about 1.4 B. As many baby boomers are still indifferent towards biotechnology space, it makes sense to digest Bluebird Bio as a unique choice for millenniums. What exactly are Bluebird Bio shareholders getting in April?

Published over three weeks ago

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Reviewed by Michael Smolkin

The company currently holds 292.97 M in liabilities with Debt to Equity (D/E) ratio of 1.63, which is about average as compared to similar companies. Bluebird Bio has a current ratio of 1.1, suggesting that it is in a questionable position to pay out its financial obligations when due. Debt can assist Bluebird Bio until it has trouble settling it off, either with new capital or with free cash flow. So, Bluebird Bio's 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 Bluebird Bio sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Bluebird to invest in growth at high rates of return. When we think about Bluebird Bio's use of debt, we should always consider it together with cash and equity.

Will Bluebird Bio (USA Stocks:BLUE) be in financial trouble before April?

Bluebird Bio financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bluebird Bio, including all of Bluebird Bio'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 Bluebird Bio assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bluebird Bio 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 Bluebird Total Liabilities

Bluebird Bio liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bluebird Bio 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 Bluebird Bio balance sheet include debt obligations and money owed to different Bluebird Bio vendors, workers, and loan providers. Below is the chart of Bluebird short long-term liabilities accounts currently reported on its balance sheet.

You can use Bluebird Bio financial leverage analysis tool to get a better grip on understanding its financial position

How important is Bluebird Bio's Liquidity

Bluebird Bio financial leverage refers to using borrowed capital as a funding source to finance Bluebird Bio ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bluebird Bio 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. Please check the breakdown between Bluebird Bio's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Bluebird Bio, but it might be worth checking our own buy vs. sell analysis

Detailed Outlook On Bluebird Bio

The entity reported the previous year's revenue of 3.66 M. Net Loss for the year was (819.38 M) with loss before overhead, payroll, taxes, and interest of (351.14 M).

Asset Breakdown

373.6 M

Assets Non Current

397.2 M

Current Assets

	Total Assets	1.01 Billion
	Current Assets	397.18 Million
	Assets Non Current	373.57 Million
	Goodwill	5.22 Million
	Tax Assets	620,053

Our take on today Bluebird Bio surge

Latest Risk Adjusted Performance is up to -0.1. Price may dip again. Bluebird Bio exhibits very low volatility with skewness of -0.38 and kurtosis of 2.37. However, we advise investors to further study Bluebird Bio technical indicators to ensure that 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 Bluebird Bio's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bluebird Bio'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.

Our Final Take On Bluebird Bio

Although some other firms in the biotechnology industry are either recovering or due for a correction, Bluebird may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Bluebird Bio at this time. The Bluebird Bio risk-reward trade off 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 Bluebird Bio.

Editorial Staff

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 Bluebird Bio. Please refer to our Terms of Use for any information regarding our disclosure principles.

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