The company has 1.12
M in debt with debt to equity (D/E) ratio of 0.02, which may show that Immunoprecise Antibodies is not taking advantage of profits from borrowing. Immunoprecise Antibodies has a current ratio of 4.96, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Debt can assist Immunoprecise Antibodies until it has trouble settling it off, either with new capital or with free cash flow. So, Immunoprecise Antibodies' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Immunoprecise Antibodies sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Immunoprecise to invest in growth at high rates of return. When we think about Immunoprecise Antibodies' use of debt, we should always consider it together with cash and equity.
Immunoprecise Antibodies financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Immunoprecise Antibodies, including all of Immunoprecise Antibodies'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 Immunoprecise Antibodies assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Immunoprecise Antibodies 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 Immunoprecise Antibodies on a daily basis if you are holding a position in it. Immunoprecise Antibodies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other 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 Immunoprecise Antibodies stock to be traded above the $1 level to remain listed. If Immunoprecise Antibodies 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.
Understanding Immunoprecise Total Debt
Immunoprecise Antibodies liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Immunoprecise Antibodies 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 Immunoprecise Antibodies balance sheet include debt obligations and money owed to different Immunoprecise Antibodies vendors, workers, and loan providers. Below is the chart of Immunoprecise main long-term debt accounts currently reported on its balance sheet.
You can use Immunoprecise Antibodies
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Immunoprecise Antibodies's Liquidity
Immunoprecise Antibodies
financial leverage refers to using borrowed capital as a funding source to finance Immunoprecise Antibodies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Immunoprecise Antibodies 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 Immunoprecise Antibodies' 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 Immunoprecise Antibodies' 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 Immunoprecise Antibodies's total debt and its cash.
Going after Immunoprecise Financials
The modest gains experienced by current holders of Immunoprecise Antibodies may raise some interest from investors. The stock closed today at a share price of
5.36 on
42,359 in trading volume. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in
November. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.7. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Immunoprecise Antibodies partners.
Another small slip for Immunoprecise Antibodies
Current value at risk is at -7.45.
As of the 15th of December 2022, Immunoprecise Antibodies retains the Market Risk Adjusted Performance of 0.1106,
risk adjusted performance of 0.0366, and Downside Deviation of 4.74. Immunoprecise Antibodies
technical analysis makes it possible for you to employ
historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to interpolate data for nineteen
technical drivers for Immunoprecise Antibodies, which can be compared to its competitors. Please check out
Immunoprecise Antibodies maximum drawdown, and the
relationship between the
information ratio and
downside variance to decide if Immunoprecise Antibodies is priced fairly, providing market reflects its last-minute price of 5.36 per share. Given that Immunoprecise Antibodies has
jensen alpha of
(0.030738), we strongly advise you to confirm Immunoprecise Antibodies's regular market performance to make sure the company can sustain itself at a future point.
The Bottom Line
Whereas other companies in the biotechnology industry are either recovering or due for a correction, Immunoprecise may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Immunoprecise valuation and our trade advice on Immunoprecise Antibodies is due to the recent market swings and your selection of investing horizon. 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 Immunoprecise Antibodies.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Immunoprecise Antibodies. Please refer to our
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