Does Sina (NASDAQ:SINA) has enough cash to last in January?

Sina is scheduled to announce its earnings tomorrow. As many millenniums are trying to avoid communication services space, it makes sense to go over Sina Corporation a little further and try to understand its current market patterns. What exactly are Sina shareholders getting in January? Here we also measure the ability of Sina 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 year ago
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Reviewed by Vlad Skutelnik

The company currently holds 1.88 B in liabilities with Debt to Equity (D/E) ratio of 0.51, which is about average as compared to similar companies. Sina has a current ratio of 2.6, suggesting that it is liquid enough and is able to pay its financial obligations when due. About 15.0% of the company outstanding shares are owned by corporate insiders. Sina has price-to-book ratio of 1.07. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity recorded a loss per share of 1.46. The firm had not issued any dividends in recent years.

How important is SINA's Liquidity

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

Breaking it down a bit more

The entity reported the previous year's revenue of 2.1 B. Net Loss for the year was (97.97 M) with profit before overhead, payroll, taxes, and interest of 1.67 B.

Sina has 100 percent chance to finish above $41 in January

The expected short fall is down to -0.55 as of today. Sina Corporation exhibits relatively low volatility with skewness of 2.82 and kurtosis of 16.93. However, we advice investors to further investigate Sina Corporation to ensure all market statistics is disseminated and is consistent with investors' estimations about Sina upside potential.

Our Takeaway on Sina Investment

Whereas few other entities in the internet content & information industry are either recovering or due for a correction, Sina may not be performing as strong as the other in terms of long-term growth potentials. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Sina.

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Editorial Staff

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 Raphi Shpitalnik do not own shares of SINA Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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