Bm Technologies currently holds 596
K in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the firm is not taking enough advantage from borrowing. This firm has a current ratio of 1.26, suggesting that it is in a questionable position to pay out its financial obligations when due. Debt can assist Bm Technologies until it has trouble settling it off, either with new capital or with free cash flow. So, Bm Technologies' 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 Bm Technologies sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Bm Technologies to invest in growth at high rates of return. When we think about Bm Technologies' use of debt, we should always consider it together with cash and equity.
Bm Technologies financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bm Technologies, including all of Bm Technologies'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 Bm Technologies assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Bm Technologies 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 Bm Technologies on a daily basis if you are holding a position in it. Bm Technologies 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 Bm Technologies stock to be traded above the $1 level to remain listed. If Bm Technologies 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 BMTX Total Debt
Bm Technologies liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bm Technologies 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 Bm Technologies balance sheet include debt obligations and money owed to different Bm Technologies vendors, workers, and loan providers. Below is the chart of BMTX main long-term debt accounts currently reported on its balance sheet.
You can use Bm Technologies
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Bm Technologies's Liquidity
Bm Technologies
financial leverage refers to using borrowed capital as a funding source to finance Bm Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bm Technologies 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 Bm Technologies' 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 Bm Technologies' 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 Bm Technologies's total debt and its cash.
Detailed Perspective On Bm Technologies
The big decline in price over the last few months for Bm Technologies could raise concerns from investors as the firm is trading at a share price of
5.89 on
24,800 in volume. The company executives failed to add value to investors and position the firm supply of money to exploit
market volatility in
June. However, diversifying your holdings with Bm Technologies or 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 3.26. The above-average risk is mostly attributed to
market volatility and speculations regarding some of the upcoming earning calls from Bm Technologies partners.
Liabilities Breakdown
22.5 M
Current Liabilities
11.6 M
Long-Term Liabilities
| Total Liabilities | 34.1 Million |
| Current Liabilities | 22.51 Million |
| Long-Term Liabilities | 11.59 Million |
| Tax Liabilities | 1.65 Million |
Over 3 percent rise for Bm Technologies. What does it mean for investors?
Risk Adjusted Performance just dropped to -0.23, may suggest upcoming price decrease. Bm Technologies exhibits very low volatility with skewness of 0.3 and kurtosis of 0.91. However, we advise investors to further study Bm Technologies 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 Bm Technologies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bm Technologies' 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.
Bm Technologies Implied Volatility
Bm Technologies' implied volatility exposes the market's sentiment of Bm Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bm Technologies' 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 Bm Technologies stock will not fluctuate a lot when Bm Technologies' options are near their expiration.
Our Takeaway on Bm Technologies Investment
While some other entities in the software—application industry are either recovering or due for a correction, Bm Technologies may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 3rd of July 2022, our research shows that Bm Technologies is a rather somewhat reliable investment opportunity with a
low probability of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be
undervalued. Our overall 90 days buy-or-sell advice on the company is
Hold.
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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 Bm Technologies. Please refer to our
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