Is Intrusion (NASDAQ:INTZ) outlook still optimistic based on the current debt level?

The next earnings report is expected on the 13th of May 2021. The stock experiences an active upward rally. Intrusion Working Capital is fairly stable at the moment as compared to the past year. Intrusion reported Working Capital of 3.58 Million in 2020. Asset Turnover is likely to rise to 2.79 in 2021, whereas Sales per Share is likely to drop 0.96 in 2021. As many baby boomers are still indifferent towards technology space, it makes sense to break down Intrusion as a unique choice for millenniums. I will address a few possible reasons investors do not currently respect this stock.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Intrusion currently holds 2.05 M in liabilities with Debt to Equity (D/E) ratio of 1.64, which is about average as compared to similar companies.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Intrusion has an asset utilization ratio of 44.93 percent. This suggests that the company is making $0.45 for each dollar of assets. An increasing asset utilization means that Intrusion is more efficient with each dollar of assets it utilizes for everyday operations.
Intrusion financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Intrusion, including all of Intrusion'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 Intrusion assets, the company is considered highly leveraged. Understanding the composition and structure of overall Intrusion 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 Intrusion Total Debt

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

How important is Intrusion's Liquidity

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

Detailed Perspective On Intrusion

The entity reported the previous year's revenue of 7.61 M. Net Loss for the year was (2.41 M) with profit before overhead, payroll, taxes, and interest of 8.3 M.

Asset Breakdown

2.2 M
Assets Non Current
6.3 M
Current Assets
Total Assets8.48 Million
Current Assets6.27 Million
Assets Non Current2.21 Million

Intrusion implied volatility may change after the rise

The expected short fall is down to -4.75 as of today. Intrusion is displaying above-average volatility over the selected time horizon. Investors should scrutinize Intrusion independently to ensure intended market timing strategies are aligned with expectations about Intrusion volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Intrusion'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 Intrusion'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 Conclusion on Intrusion

While some other entities under the software—application industry are still a bit expensive, Intrusion may offer a potential longer-term growth to investors. To conclude, as of the 27th of February 2021, our analysis shows that Intrusion slowly supersedes the market. The company is fairly valued and projects below average probability of distress for the next 2 years. Our final 30 days 'Buy-vs-Sell' recommendation on the company is 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 Rifka Kats do not own shares of Intrusion. Please refer to our Terms of Use for any information regarding our disclosure principles.

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