Liabilities Breakdown
| Total Liabilities | 17.92 Million | |
| Current Liabilities | 22.48 Million | |
| Long-Term Liabilities | 521,486 |
What is October outlook for NETSOL (NASDAQ:NTWK)?
 | By Ellen Johnson | Macroaxis Story |
NETSOL is scheduled to announce its earnings today. NETSOL Free Cash Flow is decreasing as compared to previous years. The last year's value of Free Cash Flow was reported at 3.04 Million. The current Invested Capital is estimated to increase to about 47.3 M, while Market Capitalization is projected to decrease to under 72.4 M. As many of us are excited about technology space, it is fair to examine NETSOL as a unique alternative.
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Reviewed by Michael Smolkin
The company currently holds 11.88 M in liabilities with Debt to Equity (D/E) ratio of 0.19, which may suggest NETSOL is not taking enough advantage from borrowing. NETSOL has a current ratio of 2.53, suggesting that it is liquid enough and is able to pay its financial obligations when due. NetSol Technologies financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of NetSol Technologies, including all of NetSol Technologies'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 NetSol Technologies assets, the company is considered highly leveraged. Understanding the composition and structure of overall NetSol Technologies 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 NetSol Total Liabilities
NetSol Technologies liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. NetSol Technologies 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 NetSol Technologies balance sheet include debt obligations and money owed to different NetSol Technologies vendors, workers, and loan providers. Below is the chart of NetSol short long-term liabilities accounts currently reported on its balance sheet. You can use NetSol Technologies financial leverage analysis tool to get a better grip on understanding its financial positionHow important is NetSol Technologies's Liquidity
NetSol Technologies financial leverage refers to using borrowed capital as a funding source to finance NetSol Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NetSol Technologies 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 NetSol Technologies' 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 NetSol Technologies' 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 NetSol Technologies's total debt and its cash.
Another Outlook On NetSol Technologies
The modest gains experienced by current holders of NETSOL may encourage traders to take a closer look at the firm as it is trading at a share price of 2.88 on slow start in trading volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.75. The current volatility is consistent with the ongoing market swings in August 2020 as well as with NETSOL unsystematic, company-specific events.
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