The company currently holds 1.88
M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the firm is not taking enough advantage from borrowing. Casi Pharmaceuticals has a current ratio of 3.72, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Casi Pharmaceuticals until it has trouble settling it off, either with new capital or with free cash flow. So, Casi Pharmaceuticals' 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 Casi Pharmaceuticals sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Casi Pharmaceuticals to invest in growth at high rates of return. When we think about Casi Pharmaceuticals' use of debt, we should always consider it together with cash and equity.
CASI Pharmaceuticals financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of CASI Pharmaceuticals, including all of CASI Pharmaceuticals'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 CASI Pharmaceuticals assets, the company is considered highly leveraged. Understanding the
composition and structure of overall CASI Pharmaceuticals 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 CASI Total Debt
CASI Pharmaceuticals liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. CASI Pharmaceuticals 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 CASI Pharmaceuticals balance sheet include debt obligations and money owed to different CASI Pharmaceuticals vendors, workers, and loan providers. Below is the chart of CASI main long-term debt accounts currently reported on its balance sheet.
You can use CASI Pharmaceuticals
financial leverage analysis tool to get a better grip on understanding its financial position
How important is CASI Pharmaceuticals's Liquidity
CASI Pharmaceuticals
financial leverage refers to using borrowed capital as a funding source to finance CASI Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CASI Pharmaceuticals 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 CASI Pharmaceuticals' 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 CASI Pharmaceuticals' 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 CASI Pharmaceuticals's total debt and its cash.
Another Deeper Perspective
The entity reported the previous year's revenue of 33.49
M. Net Loss for the year was (31.37
M) with profit before overhead, payroll, taxes, and interest of 17.61
M.
Liabilities Breakdown
14.2 M
Current Liabilities
13.6 M
Long-Term Liabilities
| Total Liabilities | 32.73 Million |
| Current Liabilities | 14.23 Million |
| Long-Term Liabilities | 13.6 Million |
Will Casi Pharmaceuticals continue to go bananas?
The downside deviation is down to 7.42 as of today. Casi Pharmaceuticals is displaying above-average volatility over the selected time horizon. Investors should scrutinize Casi Pharmaceuticals independently to ensure intended market timing strategies are aligned with expectations about Casi Pharmaceuticals volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Casi Pharmaceuticals' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Casi Pharmaceuticals' 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.
Casi Pharmaceuticals Implied Volatility
Our Final Takeaway
While other companies in the biotechnology industry are either recovering or due for a correction, Casi Pharmaceuticals may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Casi Pharmaceuticals valuation and our trade advice on Casi Pharmaceuticals 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 Casi Pharmaceuticals.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of CASI Pharmaceuticals. Please refer to our
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