Liabilities Breakdown
5.3 M
Current Liabilities
13.8 M
Long-Term Liabilities
| Total Liabilities | 19.05 Million | |
| Current Liabilities | 5.28 Million | |
| Long-Term Liabilities | 13.77 Million | |
| Tax Liabilities | 897,516 |
How much will Assure Holdings owe in January?
 | By Gabriel Shpitalnik | Macroaxis Story |
Assure Holdings Corp, a player in the Medical Care Facilities industry, presents a potential buying opportunity as its stock price dips 15% amid a market surge. Despite a mean deviation of 7.36 and a total risk alpha of -1.04, indicating a high risk-adjusted performance, the company's total stockholder equity stands at $5.5M, demonstrating a solid financial foundation. However, investors should note the company's retained earnings of $44.6M loss, which could impact future profitability. Nevertheless, with a net working capital of $16.4M, Assure Holdings Corp has the potential to leverage its assets to navigate market volatility and generate positive returns.
Major Takeaways
Assure Holdings Corp currently has liabilities amounting to 14.35 million, with a Debt to Equity (D/E) ratio of 0.64. This ratio is approximately average when compared to similar companies. The company's current ratio stands at 6.49, suggesting that it has sufficient liquidity to meet its financial obligations as they come due. While debt can aid Assure Holdings in the short term, it could pose problems if the company struggles to pay it off, either through new capital or free cash flow. In such a scenario, Assure Holdings' shareholders could potentially lose their entire investment if the company fails to meet its legal debt repayment obligations. However, a more common scenario is when companies like Assure Holdings Corp issue additional shares at discounted prices, thereby diluting the value of existing shares. In this context, debt can be an excellent tool for Assure Holdings to invest in growth at high rates of return. When evaluating Assure Holdings' use of debt, it's important to consider it in conjunction with cash and equity.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
Buy when there's blood in the streets. Assure Holdings Corp, a player in the Health Care Equipment & Supplies sector, has recently experienced a 15% dip in its stock price amid a market surge, potentially presenting a lucrative buying opportunity. Despite the company's negative EBITDA of $22.2M, it has managed to maintain a solid cash flow of $4M at the beginning of the period. Moreover, Assure Holdings Corp has a robust total current assets of $21.4M against total liabilities of $18.8M, indicating a strong financial position. The company's net receivables stand at $20.3M, further strengthening its balance sheet. However, potential investors should be mindful of the company's long-term debt of $11.9M and short-term debt totaling $14.4M. Despite the recent dip, the company has a naive expected forecast value of 0.37 and an analyst has given it a strong buy recommendation. Therefore, the current dip in Assure Holdings Corp's stock price could be an opportune moment for investors to leverage. Assure Holdings Corp is set to release its earnings report today. Currently, the Asset Turnover of Assure Holdings is demonstrating remarkable stability compared to the previous year. As of December 20, 2023, the Book Value per Share is projected to increase to 7.46, while the Earnings Before Tax are expected to decrease to -30.7 million. Given the growing interest in the healthcare equipment and supplies sector, it is appropriate to consider Assure Holdings Corp as a unique alternative. We will assess why recent price movements in Assure Holdings suggest a potential surge in January.Assure Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Assure Holdings, including all of Assure 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 Assure Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall Assure 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.
Watch out for price decline
Please consider monitoring Assure Holdings on a daily basis if you are holding a position in it. Assure Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Assure Holdings stock to be traded above the $1 level to remain listed. If Assure Holdings 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 Assure Holdings's Liquidity
Assure Holdings financial leverage refers to using borrowed capital as a funding source to finance Assure Holdings Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Assure 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. Financial leverage can amplify the potential profits to Assure Holdings' 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 Assure Holdings' 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 Assure Holdings's total debt and its cash.
Breaking it down a bit more
The firm reported the previous year's revenue of 10.98 M. Net Loss for the year was (30.11 M) with profit before overhead, payroll, taxes, and interest of 14.87 M.
Every cloud has a silver lining, and the recent 15% dip in Assure Holdings Corp's stock price may just be that silver lining for savvy investors. Despite the company's negative EBIT of $27.8M and net income losses of $30.1M, it's worth noting that Assure Holdings Corp has a strong current ratio of 6.62X, indicating a robust ability to meet its short-term obligations.The company's net assets stand at $24.25M, and it has a healthy net working capital of $16.4M. Furthermore, the company's debt to equity ratio is a mere 0.64%, suggesting a relatively low risk from debt. While the company's performance has been volatile, with a beta of 1.6, the recent dip in stock price could present a buying opportunity for investors who believe in the company's long-term potential in the medical care facilities industry. .
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