InfuSystems Story

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INFU -- USA Stock  

USD 13.77  0.94  7.33%

InfuSystems Holdings is scheduled to announce its earnings today. The stock is currently undergoing an unusual volatility. InfuSystems Holdings Current Ratio is comparatively stable at the moment as compared to the past year. InfuSystems Holdings reported Current Ratio of 0.88 in 2019. Debt to Equity Ratio is likely to gain to 2.75 in 2020, whereas Tangible Asset Value is likely to drop slightly above 62.6 M in 2020. While some baby boomers are getting worried about healthcare space, it is reasonable to review InfuSystems Holdings as an investment alternative. Let's break down the possibilities of InfuSystems Holdings maintaining its debt level in September.
Published over a month ago
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How much will InfuSystems Holdings owe in September?
This firm currently holds 45.34 M in liabilities with Debt to Equity (D/E) ratio of 2.06, implying InfuSystems Holdings greatly relies on financing operations through barrowing. The company has a current ratio of 0.84, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
InfuSystems Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of InfuSystems Holdings, including all of InfuSystems Holdings'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 InfuSystems Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall InfuSystems Holdings 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 InfuSystems Total Liabilities

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

How important is InfuSystems Holdings's Liquidity

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

Another Deeper Perspective

The newest bullish price patterns experienced by current InfuSystems Holdings shareholders may raise some interest from private investors. The stock closed today at a share price of 12.43 on 121,044 in trading volume. The company executives have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.37. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from InfuSystems Holdings partners.

Asset Breakdown

61.3 M
Assets Non Current
23.8 M
Goodwill
16.7 M
Tax Assets
19.7 M
Current Assets
Total Assets78.45 Million
Current Assets19.72 Million
Assets Non Current61.34 Million
Goodwill23.77 Million
Tax Assets16.71 Million

InfuSystems Holdings has 82 percent chance to drop way below $12.52 in September

The total risk alpha is down to -0.54 as of today. InfuSystems Holdings shows above-average downside volatility for the selected time horizon. We advise investors to inspect InfuSystems Holdings further and ensure that all market timing and asset allocation strategies are consistent with the estimation of InfuSystems Holdings future alpha.

The Bottom Line

Whereas few other entities in the medical instruments & supplies industry are either recovering or due for a correction, InfuSystems 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 buy nor drop any shares of InfuSystems Holdings at this time. The InfuSystems Holdings 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 InfuSystems Holdings.

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 InfuSystems Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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