Liabilities Breakdown
82.9 M
Current Liabilities
16.8 M
Long-Term Liabilities
| Deposit Liabilities | 1.55 Million | |
| Total Liabilities | 103.84 Million | |
| Current Liabilities | 82.93 Million | |
| Long-Term Liabilities | 16.8 Million | |
| Tax Liabilities | 2.35 Million |
Will Ideanomics (USA Stocks:IDEX) be in financial trouble before December?
 | By Aina Ster | Macroaxis Story |
Ideanomics, a software service company listed on NASDAQ, has shown significant financial growth with an increase in cash flow from **165.8M** to **269.9M**. This growth is largely attributed to the total cash from financing activities amounting to **399.3M**. The company's total assets stand at **473.4M**, including intangible assets worth 42.5M and property, plant, and equipment net valued at 15.7M. Despite an EBITDA loss of 82.3M and other operating expenses of 205.3M, the company's short and long-term debt totals are relatively low at 70.9M and 2M respectively. The company also has a manageable accounts payable of 6.7M. The analyst's overall consensus for Ideanomics is a 'Hold', with the lowest estimated target price being 1. Given these financial indicators, there appears to be untapped potential in Ideanomics stock investment. Ideanomics is set to announce its earnings today. Currently, the company's Inventory Turnover remains relatively stable compared to the previous year. The Accounts Payable Turnover is projected to increase to 5.69 in 2023, while the Net Income Per Employee is expected to decrease to $497.8K in the same year. Amid concerns from some baby boomers about the software space, it is sensible to consider Ideanomics as an investment option. We will assess why recent price movements in Ideanomics' stock suggest a potential rebound in December.
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Reviewed by Raphi Shpitalnik
Ideanomics, a player in the Farm & Heavy Construction Machinery industry, presents an intriguing investment opportunity from a leverage perspective. With a substantial 447.8M common stock shares outstanding, the company has a broad base of equity to leverage for growth. Despite a loss in working capital of 9.6M, the firm's financial position remains robust, backed by a healthy 269.9M in cash and short-term investments. This liquidity buffer could potentially be used to finance strategic initiatives, thereby unlocking untapped potential in the stock. However, investors should also consider the company's negative price change and the potential risks associated with its leverage strategy.
Main Points
Ideanomics currently holds 70.85 million in liabilities, with a Debt to Equity (D/E) ratio of 0.11. This ratio may suggest that the company is not leveraging borrowing to its full potential. With a current ratio of 2.69, Ideanomics appears to be liquid enough to meet its financial obligations when they are due. While debt can be beneficial for Ideanomics until it encounters difficulties in repayment, either through new capital or free cash flow, there is a risk that shareholders could end up with nothing if the company fails to meet its legal debt repayment obligations. However, a more common scenario is when companies like Ideanomics issue additional shares at discounted prices, thereby diluting the value for existing shareholders. In such cases, debt can be a superior tool for Ideanomics to invest in growth at high rates of return. When evaluating Ideanomics' use of debt, it is important to consider it in conjunction with cash and equity.Ideanomics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Ideanomics, including all of Ideanomics'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 Ideanomics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Ideanomics 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 Ideanomics on a daily basis if you are holding a position in it. Ideanomics is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Ideanomics stock to be traded above the $1 level to remain listed. If Ideanomics otc 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.
How important is Ideanomics's Liquidity
Ideanomics financial leverage refers to using borrowed capital as a funding source to finance Ideanomics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ideanomics 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 Ideanomics' 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 Ideanomics' 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 Ideanomics's total debt and its cash.
What is driving Ideanomics Investor Appetite?
The big decline in price over the last few months for Ideanomicsmay raise some interest from investors. The stock closed today at a share price of 2.17 on 129,851 in trading volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility in October. However, diversifying your holdings with Ideanomics or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 7.92. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Ideanomics partners.
Every cloud has a silver lining, and this may be the case for investors considering Ideanomics stock. Despite a high probability of bankruptcy at 79.99%, the company boasts a healthy current ratio of 2.74X, indicating its ability to cover short-term liabilities. Moreover, the firm's net debt stands at a negative $199M, suggesting a strong financial position. The company's market capitalization is a modest $26.99M, and with shares primarily owned by insiders (9.61%) and institutions (2.50%), there's a clear vote of confidence from those with inside knowledge of the company's operations. However, investors should be cautious of the company's negative return on assets (-0.26) and risk-adjusted performance (-0.11), which indicate potential challenges in profitability and risk management. In conclusion, while Ideanomics presents certain risks, its untapped potential could offer a lucrative opportunity for risk-tolerant investors. .
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