Will D S (NASDAQ:DSPG) debt increase in June 2021?

D S P is scheduled to announce its earnings today. The next earnings report is expected on the 29th of July 2021. D S Invested Capital is projected to increase significantly based on the last few years of reporting. The past year's Invested Capital was at 162.74 Million. The current year Invested Capital Average is expected to grow to about 160.2 M, whereas Average Assets are forecasted to decline to about 191.8 M. While some millenniums are indifferent towards technology space, it makes sense to digest D S P as a unique investment alternative.
Published over a year ago
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Reviewed by Michael Smolkin

D S P currently holds 13.26 M in liabilities with Debt to Equity (D/E) ratio of 0.08, which may suggest the firm is not taking enough advantage from borrowing. The entity has a current ratio of 3.06, suggesting that it is liquid enough and is able to pay its financial obligations when due.

How important is DSP's Liquidity

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

Going after DSP Financials

The firm reported the previous year's revenue of 114.48 M. Net Loss for the year was (6.79 M) with profit before overhead, payroll, taxes, and interest of 58.19 M.

Asset Breakdown

130.7 M
Assets Non Current
Goodwill
83.1 M
Current Assets
Total Assets196.08 Million
Current Assets83.14 Million
Assets Non Current130.65 Million
Goodwill22.28 Million
Tax Assets7.44 Million

Our take on today D S surge

Latest information ratio is at -0.17. D S P exhibits very low volatility with skewness of 0.02 and kurtosis of -0.37. However, we advise investors to further study D S P technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure D S's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact D S's 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.

Our Final Perspective on D S

Although few other entities in the semiconductors industry are either recovering or due for a correction, D S may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 3rd of May 2021, we believe that at this point, D S is not too volatile with very low odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our concluding 30 days 'Buy-vs-Sell' recommendation on the firm is Cautious Hold.

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Editorial Staff

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

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