PLx Pharma Story

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PLXP -- USA Stock  

USD 5.60  0.05  0.90%

PLx Pharma is scheduled to announce its earnings today. As many millenniums are trying to avoid healthcare space, it makes sense to recap PLx Pharma a little further and try to understand its current market patterns. Here we also measure the ability of PLx Pharma to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a week ago
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Does PLx Pharma (NASDAQ:PLXP) has enough cash to last in December?
This firm currently holds 3 M in liabilities with Debt to Equity (D/E) ratio of 0.44, which is about average as compared to similar companies. The company has a current ratio of 2.61, suggesting that it is liquid enough and is able to pay its financial obligations when due.
PLx Pharma financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of PLx Pharma, including all of PLx Pharma'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 PLx Pharma assets, the company is considered highly leveraged. Understanding the composition and structure of overall PLx Pharma 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.

How important is PLx Pharma's Liquidity

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

How PLx Pharma utilizes its cash?

To perform a cash flow analysis of PLx Pharma, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash PLx Pharma is receiving and how much cash it distributes out in a given period. The PLx Pharma cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Going after PLx Pharma Financials

PLx Pharma reported the previous year's revenue of 95.43 K. Net Loss for the year was (5.76 M) with profit before overhead, payroll, taxes, and interest of 565.46 K.

PLx Pharma is expecting lower volatility in December

Downside variance is down to 17.39. It may hint at a possible volatility decline. PLx Pharma shows above-average downside volatility for the selected time horizon. We advise investors to inspect PLx Pharma further and ensure that all market timing and asset allocation strategies are consistent with the estimation of PLx Pharma future alpha.

Our Final Takeaway

Although some firms under the drug manufacturers?specialty & generic industry are still a bit expensive, PLx Pharma may offer a potential longer-term growth to insiders. The inconsistency in the assessment between current PLx Pharma valuation and our trade advice on PLx Pharma 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 PLx Pharma.

About Contributor

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 Ellen Johnson do not own shares of PLx Pharma. Please refer to our Terms of Use for any information regarding our disclosure principles.

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