DiaMedica Story

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DMAC -- USA Stock  

USD 4.10  0.19  4.86%

DiaMedica Therapeutics is scheduled to announce its earnings today. DiaMedica Therapeutics Invested Capital is projected to increase significantly based on the last few years of reporting. The past year's Invested Capital was at 3.94 Million. The current year Tangible Asset Value is expected to grow to about 9.3 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (10.8 M). While some of us are becoming more enthusiastic about healthcare space, let's go over DiaMedica Therapeutics in greater detail to make a better estimate of its debt utilization.
Published over a month ago
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Will DiaMedica Therapeutics (NASDAQ:DMAC) debt increase in September
This firm currently holds 163 K in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest DiaMedica Therapeutics is not taking enough advantage from borrowing. The company has a current ratio of 14.85, suggesting that it is liquid enough and is able to pay its financial obligations when due. About 20.0% of the company shares are held by institutions such as insurance companies. The company recorded a loss per share of 0.8. DiaMedica Therapeutics had not issued any dividends in recent years. The entity had a split on the 15th of November 2018.
DiaMedica Therapeutics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of DiaMedica Therapeutics, including all of DiaMedica Therapeutics'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 DiaMedica Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall DiaMedica Therapeutics 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 DiaMedica Total Debt

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

How important is DiaMedica Therapeutics's Liquidity

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

Acquisition by Giuffre Randall Michael of 7784 shares of DiaMedica Therapeutics subject to Rule 16b-3

Legal trades by DiaMedica Therapeutics insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
DiaMedica Therapeutics insider trading alert for grant of voting common shares no par value per share by Giuffre Randall Michael, the corporate stakeholder, on 14th of June 2020. This event was filed by Diamedica Therapeutics In with SEC on 2020-06-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving DiaMedica Therapeutics Investor Appetite?

DiaMedica Therapeutics reported the previous year's revenue of 447.37 K. Net Loss for the year was (9.82 M) with profit before overhead, payroll, taxes, and interest of 500 K.

Liabilities Breakdown

1.3 M
Current Liabilities
Long-Term Liabilities
Total Liabilities1.41 Million
Current Liabilities1.33 Million
Long-Term Liabilities101,474

Breaking up DiaMedica Therapeutics current price slip

Potential upside is down to 18.96. It may suggest a possible volatility slip. DiaMedica Therapeutics is displaying above-average volatility over the selected time horizon. Investors should scrutinize DiaMedica Therapeutics independently to ensure intended market timing strategies are aligned with expectations about DiaMedica Therapeutics volatility.

Whereas some other entities under the biotechnology industry are still a bit expensive, DiaMedica Therapeutics may offer a potential longer-term growth to investors. All things considered, as of the 11th of August 2020, we see that DiaMedica Therapeutics moves slightly opposite to the market. The company is undervalued with below average probability of bankruptcy within the next 24 months. However, our ongoing 30 days recommendation on the company is Strong Sell.

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 Raphi Shpitalnik do not own shares of DiaMedica Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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