Asset Breakdown
375.8 M
Assets Non Current
117.3 M
Goodwill
151.9 M
Current Assets
| Total Assets | 527.72 Million | |
| Current Assets | 151.95 Million | |
| Assets Non Current | 375.77 Million | |
| Goodwill | 117.3 Million | |
| Tax Assets | 3.02 Million |
You think Landec (NASDAQ:LNDC) debt is an issue for investors?
 | By Ellen Johnson | Macroaxis Story |
Landec is scheduled to announce its earnings today. The next earnings report is expected on the 30th of March 2021. Landec Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 839,122. The current year Invested Capital is expected to grow to about 608.2 M, whereas Net Income Per Employee is forecasted to decline to (55.7 K). As many investors are getting excited about consumer defensive space, it is fair to go over Landec as an investment option. We will analyze why Landec investors may still consider a stake in the business.
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Reviewed by Michael Smolkin
The company currently holds 204.12 M in liabilities with Debt to Equity (D/E) ratio of 0.92, 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. Landec has an asset utilization ratio of 171.39 percent. This suggests that the company is making $1.71 for each dollar of assets. An increasing asset utilization means that Landec is more efficient with each dollar of assets it utilizes for everyday operations. Landec financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Landec, including all of Landec'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 Landec assets, the company is considered highly leveraged. Understanding the composition and structure of overall Landec 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 Landec on a daily basis if you are holding a position in it. Landec 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 Landec stock to be traded above the $1 level to remain listed. If Landec 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 Landec's Liquidity
Landec financial leverage refers to using borrowed capital as a funding source to finance Landec ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Landec 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 Landec'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 Landec'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 Landec's total debt and its cash.
Is Landec valued correctly by the market?
Landec reported the previous year's revenue of 587.29 M. Net Loss for the year was (44.41 M) with profit before overhead, payroll, taxes, and interest of 71.99 M.
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