The company currently holds 450
K in liabilities with Debt to Equity (D/E) ratio of 0.04, which may suggest the company is not taking enough advantage from borrowing. Benitec Biopharma has a current ratio of 12.72, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has price-to-book (P/B) ratio of 0.62. Some equities with similar Price to Book (P/B) outperform the market in the long run. Benitec Biopharma recorded a loss per share of
7.19. The entity had not issued any dividends in recent years. The firm had
2-3 split on the 15th of April 2020.
Benitec Biopharma financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Benitec Biopharma, including all of Benitec Biopharma'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 Benitec Biopharma assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Benitec Biopharma 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 Benitec Total Debt
Benitec Biopharma liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Benitec Biopharma 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 Benitec Biopharma balance sheet include debt obligations and money owed to different Benitec Biopharma vendors, workers, and loan providers. Below is the chart of Benitec main long-term debt accounts currently reported on its balance sheet.
You can use Benitec Biopharma Ltd
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Benitec Biopharma's Liquidity
Benitec Biopharma
financial leverage refers to using borrowed capital as a funding source to finance Benitec Biopharma Ltd ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Benitec Biopharma 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 Benitec Biopharma'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 Benitec Biopharma'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 Benitec Biopharma's total debt and its cash.
Detailed Perspective On Benitec Biopharma
Net Loss for the year was (6.91
M) with profit before overhead, payroll, taxes, and interest of 16.46
M.
Liabilities Breakdown
| Total Liabilities | 4.67 Million |
| Current Liabilities | 4.67 Million |
| Long-Term Liabilities | 48,543.86 |
Will Benitec investors exit after the slip?
Benitec Biopharma current downside variance builds up over 15.44. Benitec Biopharma Limited shows above-average downside volatility for the selected time horizon. We advise investors to inspect Benitec Biopharma Limited further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Benitec Biopharma future alpha.
The Bottom Line
Whereas some companies in the biotechnology industry are either recovering or due for a correction, Benitec may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Benitec valuation and our trade advice on Benitec Biopharma 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 Benitec Biopharma.
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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 Benitec Biopharma Ltd. Please refer to our
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