Liabilities Breakdown
| Total Current Liabilities | 7.8 Million | |
| Liabilities And Stockholders Equity | 288.11 Million | |
| Non Current Liabilities Total | 0.0 | |
| Non Current Liabilities Other | 3,893.6 |
How much will Vizsla Resources owe in May?
 | By Vlad Skutelnik | Macroaxis Story |
Vizsla Resources Corp has a current ratio of 4.05, indicating sufficient liquidity to meet its financial obligations. While debt can support Vizsla Resources, difficulties may arise if it struggles to repay, potentially leaving shareholders with nothing if the company fails to meet its legal debt obligations. It's not uncommon for companies like Vizsla Resources Corp to issue additional shares at low prices, diluting existing shareholders. However, debt can be a valuable tool for Vizsla to invest in high-return growth. It's crucial to consider Vizsla Resources' use of debt in conjunction with cash and equity.
Main Takeaways
Vizsla Resources Corp (VZLA) has shown a negative Jensen Alpha of -0.02, indicating underperformance against the expected return, which could signal a potential market correction. Furthermore, the company's significant $17.9M decrease in cash and a $3.6M reduction in working capital may further exacerbate its financial instability, making it a risky investment from a leverage viewpoint.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
Vizsla Resources Corp (VZLA), a player in the Basic Materials sector and specifically in the Other Industrial Metals & Mining industry, has been showing signs of potential market correction. The company, which went public on the 21st of January 2022, has seen a significant change in cash of a loss of $17.9M, with the end period cash flow standing at $12.6M, down from the beginning period's $30.5M. This is largely due to the company's high capital expenditures of $11.9M and operating income loss of $13.5M. Despite a net interest income of $959.7K and long-term investments worth $1.3M, the company's financial health is further strained by other operating expenses amounting to $14M and accounts payable of $6.2M. The company's day median price stands at $1.31, with a possible downside price of 0.0133, indicating potential for a market correction. However, with a net working capital of $67.6M and total current assets of $74M, Vizsla Resources Corp may have the capacity to weather this storm. Vizsla Resources Corp is set to release its earnings report today, with the subsequent financial report anticipated on July 18, 2024. Currently, Vizsla Resources' Payables Turnover is projected to slightly increase, based on recent years' data. The Effective Tax Rate for the current year is expected to rise to 0.03, while the Price Earnings Ratio is predicted to drop to (23.31). Despite some millennials' indifference towards the metals and mining sector, Vizsla Resources Corp presents a unique investment opportunity. We will further explore why investors might still consider investing in this company.Vizsla Resources financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Vizsla Resources, including all of Vizsla Resources'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 Vizsla Resources assets, the company is considered highly leveraged. Understanding the composition and structure of overall Vizsla Resources 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 Vizsla Resources's Liquidity
Vizsla Resources financial leverage refers to using borrowed capital as a funding source to finance Vizsla Resources Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vizsla Resources 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 Vizsla Resources' 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 Vizsla Resources' 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 Vizsla Resources's total debt and its cash.
Vizsla Resources Gross Profit
Vizsla Resources Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Vizsla Resources previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Vizsla Resources Gross Profit growth over the last 10 years. Please check Vizsla Resources' gross profit and other fundamental indicators for more details.
An Additional Perspective On Vizsla Resources Corp
Net Loss for the year was (13.59 M) with profit before overhead, payroll, taxes, and interest of 0.
As Warren Buffet wisely said, be fearful when others are greedy and greedy when others are fearful. Vizsla Resources Corp (VZLA) appears to be in a precarious position. With a high beta of 1.96, the stock is significantly more volatile than the market, suggesting that if a market correction is on the horizon, VZLA could be hit hard.The company's net income shows a loss of 13.6M, and its free cash flow is also in the red at -24.2M, indicating financial struggles. Furthermore, the high probability of bankruptcy at 84.36% cannot be ignored. These factors combined suggest that VZLA may indeed be poised for a market correction. .
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