Citius Story

Does Citius Pharmaceuticals (NASDAQ:CTXR) has enough cash to last in January?
Citius Pharmaceuticals financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Citius Pharmaceuticals, including all of Citius 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 Citius Pharmaceuticals assets, the company is considered highly leveraged. Understanding the composition and structure of overall Citius 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.

Watch out for price decline

Please consider monitoring Citius Pharmaceuticals on a daily basis if you are holding a position in it. Citius Pharmaceuticals is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. 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 Citius Pharmaceuticals stock to be traded above the $1 level to remain listed. If Citius Pharmaceuticals 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 Citius Total Liabilities

Citius Pharmaceuticals liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Citius 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 Citius Pharmaceuticals balance sheet include debt obligations and money owed to different Citius Pharmaceuticals vendors, workers, and loan providers. Below is the chart of Citius short long-term liabilities accounts currently reported on its balance sheet. You can use Citius Pharmaceuticals financial leverage analysis tool to get a better grip on understanding its financial position

How important is Citius Pharmaceuticals's Liquidity

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

Detailed Outlook On Citius Pharmaceuticals

About Contributor