Citius Story

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CTXR -- USA Stock  

USD 1.25  0.08  6.01%

Citius Pharmaceuticals is scheduled to announce its earnings today. Citius Pharmaceuticals Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Citius Pharmaceuticals reported last year Depreciation Amortization and Accretion of 803.70. As of 12/11/2020, Net Cash Flow or Change in Cash and Cash Equivalents is likely to grow to about 13.1 K, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop (1.3 M). As many investors are getting excited about healthcare space, it is fair to sum up Citius Pharmaceuticals as an investment option. Let's discuss the possibilities of Citius Pharmaceuticals maintaining its debt level in January.
Published over a month ago
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Does Citius Pharmaceuticals (NASDAQ:CTXR) has enough cash to last in January?
The company currently holds 1.39 M in liabilities with Debt to Equity (D/E) ratio of 0.05, which may suggest Citius Pharmaceuticals is not taking enough advantage from borrowing. Citius Pharmaceuticals has a current ratio of 2.32, suggesting that it is liquid enough and is able to pay its financial obligations when due.
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

The latest spike in Citius Pharmaceuticals short term price appreciation could raise concerns from retail investors as the firm it trading at a share price of 1.18 on 1,083,928 in volume. The company management teams have successfully maneuvered the firm at convenient times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.59. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Citius Pharmaceuticals partners.

Liabilities Breakdown

1.4 M
Current Liabilities
1.7 M
Long-Term Liabilities
Total Liabilities3.98 Million
Current Liabilities1.36 Million
Long-Term Liabilities1.73 Million

Will Citius retail investors exit after the fall?

Latest maximum drawdown is at 24.01. Citius Pharmaceuticals shows above-average downside volatility for the selected time horizon. We advise investors to inspect Citius Pharmaceuticals further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Citius Pharmaceuticals future alpha. Citius Pharmaceuticals is a potential penny stock. Although Citius Pharmaceuticals may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Citius Pharmaceuticals. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Bottom Line

While many other companies in the biotechnology industry are either recovering or due for a correction, Citius may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor drop any shares of Citius Pharmaceuticals at this time. The Citius Pharmaceuticals risk-reward trade off is not appealing enough to do any trading. 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 Citius Pharmaceuticals.

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

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