Benitec Story

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Benitec Biopharma is scheduled to announce its earnings today. Benitec Biopharma Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 4.71 Million. The current year Earnings before Tax is expected to grow to about 5.1 M, whereas Average Assets are forecasted to decline to about 21.7 M. Although many aggressive traders are getting into healthcare space, Benitec Biopharma Limited may or may not be your first choice. I will address a few possible reasons investors do not currently respect this stock.
Published over three weeks ago
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How much will Benitec Biopharma owe in September?
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.

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 Limited 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 Limited 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. 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 Liabilities4.67 Million
Current Liabilities4.67 Million
Long-Term Liabilities48,543.86

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.

About Contributor

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

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