Balance sheet – Storming Heaven For Alyssa http://stormingheavenforalyssa.com/ Tue, 30 Nov 2021 11:14:45 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://stormingheavenforalyssa.com/wp-content/uploads/2021/10/icon-25.png Balance sheet – Storming Heaven For Alyssa http://stormingheavenforalyssa.com/ 32 32 Glaston writes off balance sheet items related to the Heliotrope partnership https://stormingheavenforalyssa.com/glaston-writes-off-balance-sheet-items-related-to-the-heliotrope-partnership/ Tue, 30 Nov 2021 07:38:06 +0000 https://stormingheavenforalyssa.com/glaston-writes-off-balance-sheet-items-related-to-the-heliotrope-partnership/ Glaston’s role in the project was to develop a production line to produce smart glass developed by Heliotrope Technologies on an industrial scale. The development of the production line has already been completed in 2018. Product development of current smart glass technology, on the other hand, has been delayed and Heliotrope Technologies has not been […]]]>

Glaston’s role in the project was to develop a production line to produce smart glass developed by Heliotrope Technologies on an industrial scale. The development of the production line has already been completed in 2018. Product development of current smart glass technology, on the other hand, has been delayed and Heliotrope Technologies has not been able to raise the necessary funds in recent years. financing negotiations to finalize product development. and the activities of the company must cease.

As a result, Glaston has decided to write off all items from the balance sheet related to Heliotrope, for a total of approximately 5.2 million euros, of which 0.8 million euros impacting costs on operating profit and recorded as items. affecting comparability. The depreciation of loan receivables recognized in financial items is 1.6 million euros and the depreciation of securities affecting shareholders’ equity without impact on profit is 2.8 million euros.

The write-off has no effect on cash flow or impact on Glaston’s outlook for 2021. In addition, the growth objectives and strategic plans of Glaston’s updated strategy announced in August of this year. years are not based on the Heliotrope project or any other project related to completely new technologies. .

However, there is a growing need for dynamic glass technologies and, in the long term, this market will offer growth opportunities.

New customer contacts

Through the Heliotrope partnership, Glaston has established contacts with parties developing new glass technologies, which has brought the company interesting new openings and customer projects for consulting services.

“Thanks to the Heliotrope project and the other contacts it has made, we have learned a lot about new glass technologies and industry development trends, which has been invaluable for our own development work. We are now putting this new expertise at the service of our customers. As a pioneer in our sector, we do not rule out new models of cooperation with glass start-ups either. When successful, they can open up new business opportunities, ”says Anders Dahlblom, President and CEO of Glaston.


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Does EHang Holdings (NASDAQ: EH) have a healthy balance sheet? https://stormingheavenforalyssa.com/does-ehang-holdings-nasdaq-eh-have-a-healthy-balance-sheet/ Sat, 27 Nov 2021 14:06:16 +0000 https://stormingheavenforalyssa.com/does-ehang-holdings-nasdaq-eh-have-a-healthy-balance-sheet/ Warren Buffett said: “Volatility is far from synonymous with risk”. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess the level of risk of a business. Above all, EHang Holdings Limited (NASDAQ: EH) is in debt. But should shareholders […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk”. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess the level of risk of a business. Above all, EHang Holdings Limited (NASDAQ: EH) is in debt. But should shareholders be concerned about its use of debt?

When is debt a problem?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. While it’s not too common, we often see indebted companies continually diluting their shareholders because lenders are forcing them to raise capital at a ridiculous price. By replacing dilution, however, debt can be a very good tool for companies that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash flow and debt together.

What is the debt of EHang Holdings?

As you can see below, EHang Holdings had a debt of CN 30.0 million in June 2021, compared to CN 41.1 million the previous year. However, his balance sheet shows that he has CN 406.5 million in cash, so he actually has a net cash of CN 376.5 million.

NasdaqGM: EH History of debt to equity November 27, 2021

How strong is EHang Holdings’ balance sheet?

The latest balance sheet data shows that EHang Holdings had liabilities of CNN 124.3 million due within one year, and CNN 68.4 million liabilities due after that. In compensation for these obligations, he had cash of CN 406.5 million as well as receivables valued at CN 111.8 million due within 12 months. So he actually CN ¥ 325.6m Following liquid assets as total liabilities.

This short-term liquidity is a sign that EHang Holdings could likely repay its debt easily, as its balance sheet is far from tight. In short, EHang Holdings has net cash, so it’s fair to say it doesn’t have a lot of debt! There is no doubt that we learn the most about debt from the balance sheet. But it is future earnings, more than anything, that will determine EHang Holdings’ ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free Analyst Profit Forecast report interesting.

In the past year, EHang Holdings was not profitable at EBIT level, but managed to increase its revenue by 12%, to CN ¥ 161m. We generally like to see unprofitable businesses growing faster, but each in their own way.

So how risky is EHang Holdings?

By their very nature, businesses that lose money are riskier than those with a long history of profitability. And over the past year, EHang Holdings has recorded a loss of earnings before interest and taxes (EBIT), frankly. Indeed, during this period he spent CN 141 million in cash and suffered a loss of CN 186 million. While this does make the company a bit risky, it is important to remember that it has a net cash position of CNN 376.5 million. This jackpot means the business can continue to spend on growth for at least two years, at current rates. Overall, its balance sheet doesn’t look too risky at the moment, but we are still cautious until we see positive free cash flow. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks lie on the balance sheet – far from it. For example – EHang Holdings has 2 warning signs we think you should be aware.

At the end of the day, it’s often best to focus on businesses that don’t have net debt. You can access our special list of these companies (all with a history of profit growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Ciena (NYSE: CIEN) has a pretty healthy track record https://stormingheavenforalyssa.com/ciena-nyse-cien-has-a-pretty-healthy-track-record/ Fri, 26 Nov 2021 09:25:02 +0000 https://stormingheavenforalyssa.com/ciena-nyse-cien-has-a-pretty-healthy-track-record/ Howard Marks put it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. So it can be obvious that you need to consider debt, when you think about how risky a […]]]>

Howard Marks put it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. So it can be obvious that you need to consider debt, when you think about how risky a given stock is, because too much debt can sink a business. Above all, Ciena Company (NYSE: CIEN) is in debt. But does this debt worry shareholders?

When Is Debt a Problem?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, then it exists at their mercy. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that he has to raise new equity at low cost, thereby constantly diluting shareholders. By replacing dilution, however, debt can be a very good tool for companies that need capital to invest in growth at high rates of return. When we think of a business’s use of debt, we first look at cash flow and debt together.

How much debt does Ciena have?

The graph below, which you can click for more details, shows that Ciena had $ 699.5 million in debt as of July 2021; about the same as the year before. However, his balance sheet shows that he holds $ 1.41 billion in cash, so he actually has $ 713.0 million in net cash.

NYSE: CIEN Debt to Equity History November 26, 2021

Is Ciena’s track record healthy?

Zooming in on the latest balance sheet data, we can see that Ciena had a liability of US $ 827.1 million due within 12 months and a liability of US $ 904.5 million beyond. In return, he had $ 1.41 billion in cash and $ 996.1 million in receivables due within 12 months. So he actually has $ 676.9 million Following liquid assets as total liabilities.

This short-term liquidity is a sign that Ciena could probably repay its debt easily, as its balance sheet is far from tight. In short, Ciena has a net cash flow, so it’s fair to say that she doesn’t have a lot of debt!

But the bad news is that Ciena has seen its EBIT drop 13% over the past twelve months. We believe that this type of performance, if repeated frequently, could well cause difficulties for the title. The balance sheet is clearly the area to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether Ciena can strengthen its balance sheet over time. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, while the IRS may love accounting profits, lenders only accept hard cash. Ciena may have net cash on the balance sheet, but it’s always interesting to consider how well the business converts its earnings before interest and taxes (EBIT) into free cash flow, as this will influence both its need and its ability to manage debt. Over the past three years, Ciena has recorded free cash flow of 78% of its EBIT, which is close to normal given that free cash flow excludes interest and taxes. This hard cash allows him to reduce his debt whenever he wants.

In summary

While we sympathize with investors who find the debt of concern, you should keep in mind that Ciena has net cash of US $ 713.0 million, as well as more liquid assets than liabilities. And he impressed us with free cash flow of US $ 385 million, or 78% of his EBIT. So we don’t think Ciena’s use of debt is risky. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist off the balance sheet. Concrete example: we have spotted 1 warning sign for Ciena you must be aware.

If, after all of this, you’re more interested in a fast-growing company with a strong balance sheet, take a quick look at our list of cash net growth stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Does Filta Group Holdings (LON: FLTA) have a healthy balance sheet? https://stormingheavenforalyssa.com/does-filta-group-holdings-lon-flta-have-a-healthy-balance-sheet/ Wed, 24 Nov 2021 07:47:22 +0000 https://stormingheavenforalyssa.com/does-filta-group-holdings-lon-flta-have-a-healthy-balance-sheet/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say this when he says “The biggest risk in investing is not price volatility, but if you will suffer a loss. permanent capital “. So it can be obvious that you need to consider debt, when you think about how risky a given […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say this when he says “The biggest risk in investing is not price volatility, but if you will suffer a loss. permanent capital “. So it can be obvious that you need to consider debt, when you think about how risky a given stock is because too much debt can sink a business. We note that Filta Group Holdings plc (LON: FLTA) has debt on its balance sheet. But should shareholders be concerned about its use of debt?

When is debt a problem?

Debts and other liabilities become risky for a business when it cannot easily meet these obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that he has to raise new equity at low cost, thereby constantly diluting shareholders. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. When we think of a business’s use of debt, we first look at cash flow and debt together.

Check out our latest analysis for Filta Group Holdings

What is the debt of Filta Group Holdings?

You can click on the graph below for historical figures, but it shows that as of June 2021, Filta Group Holdings was in debt of £ 4.22million, an increase from £ 3.88million sterling, over one year. However, his balance sheet shows that he holds £ 4.24million in cash, so he actually has net cash of £ 20.5,000.

debt-equity-historical-analysis

How healthy is Filta Group Holdings’ balance sheet?

The latest balance sheet data shows Filta Group Holdings had debt of £ 5.19million due within one year, and debt of £ 6.30million due after that. In return, he had £ 4.24 million in cash and £ 2.70 million in receivables due within 12 months. His liabilities therefore total £ 4.54million more than the combination of his cash and short-term receivables.

Given that the listed shares of Filta Group Holdings are worth a total of £ 40.8million, it seems unlikely that this level of liabilities will be a major threat. But there are enough liabilities that we would certainly recommend that shareholders continue to monitor the balance sheet going forward. Despite its notable liabilities, Filta Group Holdings has a net cash flow, so it is fair to say that it does not have a heavy debt load!

We also note that Filta Group Holdings improved its EBIT from a loss last year to a positive amount of £ 381,000. There is no doubt that we learn the most about debt from the balance sheet. But ultimately, the company’s future profitability will decide whether Filta Group Holdings can strengthen its balance sheet over time. So if you are focused on the future you can check this out free report showing analysts’ earnings forecasts.

Finally, a business can only repay its debts with hard cash, not with book profits. Although Filta Group Holdings has net cash on its balance sheet, it is still worth examining its ability to convert earnings before interest and taxes (EBIT) into free cash flow, to help us understand how fast it is. builds (or erodes) that cash balance. Fortunately for all shareholders, Filta Group Holdings actually generated more free cash flow than EBIT over the past year. This kind of cash conversion makes us as excited as the crowd when the beat drops at a Daft Punk concert.

In summary

Although Filta Group Holdings has more liabilities than liquid assets, it also has net cash of £ 20.5,000. And he impressed us with free cash flow of £ 1.5million, or 405% of his EBIT. So we have no problem with the use of debt by Filta Group Holdings. The balance sheet is clearly the area to focus on when analyzing debt. However, not all investment risks lie on the balance sheet – far from it. For example, we have identified 1 warning sign for Filta Group Holdings that you need to be aware of.

At the end of the day, it’s often best to focus on businesses that don’t have net debt. You can access our special list of these companies (all with a history of profit growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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TENDERD explains how entrepreneurs preserve their bottom line while preserving the environment https://stormingheavenforalyssa.com/tenderd-explains-how-entrepreneurs-preserve-their-bottom-line-while-preserving-the-environment/ Sun, 21 Nov 2021 19:12:00 +0000 https://stormingheavenforalyssa.com/tenderd-explains-how-entrepreneurs-preserve-their-bottom-line-while-preserving-the-environment/ The buying and selling of used heavy equipment is the new trend. Trend that protects your cash flow and contributes positively to the environment. It is a step forward towards sustainable building practices. Source: European Rental Association & Climate Neutral Group. Quantity of carbon emissions involved at different stages of the life cycle of heavy […]]]>

The buying and selling of used heavy equipment is the new trend. Trend that protects your cash flow and contributes positively to the environment. It is a step forward towards sustainable building practices.

Source: European Rental Association & Climate Neutral Group.  Quantity of carbon emissions involved at different stages of the life cycle of heavy equipment.  Fuel consumption is peaking, but at the same time, you can eliminate the manufacturing of new equipment by purchasing used heavy equipment.

Source: European Rental Association & Climate Neutral Group. Quantity of carbon emissions involved at different stages of the life cycle of heavy equipment. Fuel consumption is peaking, but at the same time, you can eliminate the manufacturing of new equipment by purchasing used heavy equipment.

The easiest way to buy and sell gear is to skip the line.  You can now list your used equipment on Tenderd Sales Marketplace for global visibility.

The easiest way to buy and sell gear is to skip the line. You can now list your used equipment on Tenderd Sales Marketplace for global visibility.

The used heavy equipment resale market is growing, which benefits both the environment and the balance sheets of entrepreneurs.

We believe in the power of the circular economy. A system where resources intentionally continue their useful life in some form instead of being disposed of in traditional “waste”.

– Lara Bekhazi, COO – Tenderd

DUBAI, UNITED ARAB EMIRATES, Nov. 21, 2021 /EINPresswire.com/ – Over the past year, we have seen an increase in requests for pre-used heavy equipment, coming from the two locations close to home in the CCG, for offshore Georgia and India. Demand for forklifts and excavators dominated, in line with trends in our rental market.

Highlighting the strengthening global resale market, increasing M&A activity in the industry, Ritchie Bros bought out Euro Auctions earlier this year, marking the third major acquisition by Canadian heavy equipment auctioneers in 11 months , and their biggest purchase since spending US dollars. 759 million on Iron Planet in 2016.

Supply chain disruptions and rising costs of key raw materials used to manufacture heavy equipment, such as steel, mean that contractors have to pay more and wait longer before buying new heavy equipment.

Heavy equipment rental or sales e-commerce, such as Tenderd’s, saves entrepreneurs on capital costs and prolongs the life cycle of well-maintained equipment. Equipment owners have the power to continue using their assets well beyond the end of the projects for which they were originally purchased. The planet benefits too. For example, for every excavator reused instead of being newly purchased, 20 tonnes of CO2 equivalent are avoided in the atmosphere.

We believe in the power of the circular economy – a system in which products or resources intentionally continue their useful life, in the same or altered form – as opposed to a traditional “waste” or linear economy. Sharing assets, through leasing, and reselling assets are examples of circular economy use cases that we are particularly passionate about.

Last month, Tenderd took its commitment to the economic and operational longevity of heavy equipment a step further by launching a sales market to complement our thriving rental market. Equipment owners and end users who want to buy or sell heavy equipment, from mobile cranes to dump trucks, meet in our marketplace and can seamlessly move from online research to purchasing equipment offline. With no referral fees, sales are closed in record time and bypass the lengthy auction process seen in most eCommerce equipment auction platforms.

If you are interested in buying or selling heavy equipment, the Tenderd team will be happy to talk to you! We connect equipment buyers to sellers around the world and offer global delivery options, capturing the best market value in all geographies.

Visit us at sale.tendrd.com
Contact us at buysell@tendrd.com

About TENDRE
TENDERD is an operations management platform that helps businesses rent and manage construction equipment and vehicles in a systematic and efficient manner. From real-time productivity monitoring to predictive maintenance alerts, TENDERD offers a complete software platform to manage the owned and leased fleet as “a fleet” by providing a 360 * view of project sites with specific use. equipment. The company is based in Dubai, United Arab Emirates.

Author: Lara Bekhazi
Co-author: Bhargav Shah

Bhargav shah
OFFER
b.shah@tendrd.com
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After Bitcoin, Ethereum will appear on TIME Magazine’s balance sheet https://stormingheavenforalyssa.com/after-bitcoin-ethereum-will-appear-on-time-magazines-balance-sheet/ Thu, 18 Nov 2021 14:31:13 +0000 https://stormingheavenforalyssa.com/after-bitcoin-ethereum-will-appear-on-time-magazines-balance-sheet/ Ethereum [ETH] will soon be on TIME Magazine’s balance sheet as part of the publication’s partnership with crypto-investment firm Galaxy Digital. The partnership aims to educate its readers about the Metaverse through a newsletter called “Into the Metaverse”. Additionally, the popular media publication has remained “true to its crypto and Web3 goal” by completing the […]]]>

Ethereum [ETH] will soon be on TIME Magazine’s balance sheet as part of the publication’s partnership with crypto-investment firm Galaxy Digital. The partnership aims to educate its readers about the Metaverse through a newsletter called “Into the Metaverse”.

Additionally, the popular media publication has remained “true to its crypto and Web3 goal” by completing the entire transaction in ETH. In fact, it also “marked a first for a major media organization,” a press release noted. He added,

“In addition, TIME will hold ETH on its balance sheet for the first time. This payment follows TIME which began accepting cryptocurrency as a form of payment for digital subscriptions in April 2021 as the brand continues to grow in the cryptocurrency space.

Along with the newsletter, the magazine will also launch a TIME 100 business list for the metaverse. This will highlight the companies that make the blockchain and crypto-space more accessible, as well as those that provide solutions for the significant development of the metaverse industry.

Ether will join Bitcoin as the second cryptocurrency to appear on TIME’s balance sheet. He was paid in top cryptocurrency for a deal with another investment management firm, Grayscale, in April. The deal also included the release of a series of educational videos on the industry.

In March, TIME released a set of three TIME covers as non-fungible tokens at an auction. This included the very first blanket designed exclusively as NFT.

While TIME magazine’s Ethereum holdings remain unprecedented in the media world, several institutional investors view the network as a viable investment asset. Currently, Ether is also on the balance sheets of Galaxy Digital, crypto exchange Coinbase, and Hive Blockchain.

Given that most of them are admittedly companies operating in the crypto-space, TIME magazine’s ETH foray could be seen as an even bigger event.


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How Cash Loans Can Ease MSME’s Pain in Increasing Balance Sheet Based Credit https://stormingheavenforalyssa.com/how-cash-loans-can-ease-msmes-pain-in-increasing-balance-sheet-based-credit/ https://stormingheavenforalyssa.com/how-cash-loans-can-ease-msmes-pain-in-increasing-balance-sheet-based-credit/#respond Thu, 11 Nov 2021 08:00:00 +0000 https://stormingheavenforalyssa.com/how-cash-loans-can-ease-msmes-pain-in-increasing-balance-sheet-based-credit/ Also in 2019, the UK Sinha committee report on MSMEs stated that the introduction of cash lending is essential to reduce the credit gap faced by MSMEs. (Image: Pexels.com) Credit and financing for MSMEs: Discussions about improving cash flow-based loans to MSMEs have been circulating in the lending ecosystem for at least four or five […]]]>
Also in 2019, the UK Sinha committee report on MSMEs stated that the introduction of cash lending is essential to reduce the credit gap faced by MSMEs. (Image: Pexels.com)

Credit and financing for MSMEs: Discussions about improving cash flow-based loans to MSMEs have been circulating in the lending ecosystem for at least four or five years. The model can reduce the time and hassle of increasing instant credit for borrowers, even though its share of the overall lending space continues to be tiny, according to experts speaking on Day 1 of the loan. Artha SME event from Financial Express Online.

“MSMEs need timely working capital. Typical processes take months for credit assessment as it is all based on balance sheet based loans. The majority or 70 percent of MSMEs would never qualify for balance sheet loans. However, they work with some of the largest companies in the country, have a strong performance track record, and have healthy cash flow. I don’t think why this data can’t be leveraged to provide them with innovative working capital products. This would provide MSMEs with instant access to working capital, within 24 hours. This is the problem that we are trying to solve at CredAble, ”said Nirav Choksi, co-founder and CEO of CredAble.

The Reserve Bank of India (RBI) had also urged lenders to adopt loans based on cash flow rather than balance sheet. In December last year, during a webinar, Governor Shaktikanta Das said that “to improve the credit-to-gross domestic product ratio, access to credit and the cost of credit must be addressed with less reliance. on collateral guarantees and increasing cash flow based lending. “Also in 2019, the UK Sinha committee report on MSMEs stated that the introduction of cash lending is key to reducing the credit gap faced by MSMEs.

However, “there are structural barriers to cash lending to MSMEs. Customer acquisition costs (CAC) for lenders are high because lenders and qualified borrowers are not tied to each other. Loan operating costs (LOC) for loan application processing, disbursement and continued repayments are also very high. Some of these costs are fixed and, therefore, small business loans, especially those under Rs 10 lakhs, are considerably less profitable than large business loans and therefore less attractive to banks, ”the report says. report.

Also Read: Explained: What India’s Coal Shortage Means for MSMEs Recovering from Covid Impact

However, according to the report, unlike other forms of lending (project finance, lines of credit, microcredit from MFIs), cash lending is only possible in a digital lending and payment value chain. For example, cash loans require at a minimum visibility into past and future cash flows. “Beyond visibility, this form of credit benefits from automated checks on cash flows. For example, the lender can be assured of repayment through a lien on future cash flows. This is now possible thanks to a set of nested Digital Public Infrastructures, such as E-Links.

The cash flow model allows banks and other lenders to extend credit to borrowers based on real-time cash flow data such as underwriting, loan product setup, and repayment. The process does not have to factor in collateral as the lending basis in the asset-based model. The existing cash flow allows to provide credit products with the right amount of loans with a shorter term, better turnaround time and flexibility in repayment periods. However, the share of cash loans in the overall credit market remains low.

“Cash flow-based loans represent a very small part of the total loans that banks and NBFCs make together. The reason for this lower share is that cash flow based loans normally require much more discipline on the part of the lender, while even closer monitoring of unit cash flow is required for loans. , which means proportionately that operating expenses (OpEx) at least initially as the business establishes itself on the top side. We started to take small steps, but in the context of global loans, which are coming to MSMEs, I would say it’s a very tiny portion, ”Ajay Srinivasan, director of Crisil Research.

Chandrakant Salunkhe, who heads the SME Chamber of India, however, noted that NBFCs should rework interest rates for affordable financing for MSMEs, while MSMEs also need to develop an understanding of the procedures and compliances involved in the model. traditional loan.

“There are almost 7 million MSMEs in India and over 4.5 million of them are independent units dependent on traditional funding which is expensive. The need now is to fully understand the demand for financing from the MSME sector. Also, most MSMEs do not understand the procedural work, compliances etc involved in the process… NBFCs should think of a lower interest rate instead of 20% or up to 30% ”, a said Salunkhe.

Subscribe now to the Financial Express PME newsletter:Your weekly dose of news, perspectives and updates from the world of micro, small and medium businesses

However, the higher interest rate would remain an issue unless banks increase their support, as the borrowing rate continues to stay higher at 12% or more for several NBFCs. “Banks sit on money and invest in AAA rated NBFCs while NBFCs like ours provide last mile distribution to micro-businesses without any liquidity reaching us at a reasonable cost. We also provided loans under ECGLS without the benefits of ECGLS coming to us from the banks. The bond that exists where bankers sit on capital and fail to release to BBB grade NBFCs should be severed, ”said Hardika Shah, Founder and CEO of Kinara Capital.

Srinivasan added that if the interest rate is a problem, but an equally important problem is the availability of funds in a timely manner. “Thanks to fintechs, the turnaround time (for access to credit) has decreased, but the rate remains an issue. In addition, the last three years have been very difficult because there has been the IL&FS crisis, the Covid problem, etc. Thus, banks have become extremely risk-averse. “

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Digitization is the key to a healthy balance sheet https://stormingheavenforalyssa.com/digitization-is-the-key-to-a-healthy-balance-sheet/ https://stormingheavenforalyssa.com/digitization-is-the-key-to-a-healthy-balance-sheet/#respond Tue, 09 Nov 2021 09:00:25 +0000 https://stormingheavenforalyssa.com/digitization-is-the-key-to-a-healthy-balance-sheet/ Businesses of all sizes and across industries found themselves in dire financial straits after March 2020, putting unprecedented pressure on CFOs tasked with helping them weather the pandemic. Instead of collapsing under the pressure, however, many CFOs took the opportunity to accelerate their efforts to digitize their payment streams. In fact, 71% of them have […]]]>

corporate payments digitization digital payments

corporate payments digitization digital payments innovationBusinesses of all sizes and across industries found themselves in dire financial straits after March 2020, putting unprecedented pressure on CFOs tasked with helping them weather the pandemic. Instead of collapsing under the pressure, however, many CFOs took the opportunity to accelerate their efforts to digitize their payment streams. In fact, 71% of them have increased their business’s use of digital payments since March 2020, while 87% are using fewer manual payment methods like checks and cash.

This is just one of the discoveries discovered in Digitization of corporate payments: a path to a better balance sheet, a PYMNTS and Corcentric collaboration. We surveyed CFOs of organizations generating between $ 400 billion and $ 2 billion in annual revenue to find out if their companies have accelerated the use of digital payments since March 2020 to find out more about how the health of the balance sheet is doing. integrates into their broader, long-term growth strategies.corporate payments digitization digital payments innovation

Other key findings from our research include:

  • Fifty-nine percent of CFOs believe digitization of payments is key to maintaining a healthy balance sheet. Thirty-six percent of CFOs stepped up their efforts to digitize payments precisely because they believed it would improve the health of their balance sheet. These results underscore how central CFOs believe digital innovation can be integrated into their payment optimization strategies.
  • Eighty-four percent of CFOs say digitization of payments has improved working capital. This is just one of 4.1 ways CFOs say their businesses have benefited from the digitization of payments. Other key benefits businesses have reaped from digitizing their payment processes include increased efficiency, lower costs, and enhanced data security.
  • Finance and insurance companies and healthcare companies are the most balance sheet-oriented when it comes to the digitization of payments. Companies in these sectors believe more than others in the importance of the digitization of payments, at 71% and 64%, respectively. They are also more likely to say that the digitization of payments benefits their larger payment transactions.corporate payments digitization digital payments innovation

It’s clear that digital payment innovation will be a top priority for CFOs going forward. Digitization of corporate payments: a path to a better balance Sheet provides an overview of the factors influencing CFOs’ drive to digitize and the benefits enjoyed by those who have made accelerating digitization a central goal.

To learn more about how CFOs think the digitization of payments can improve their financial performance, download the report.


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Union Pacific (NYSE: UNP) has a pretty healthy track record https://stormingheavenforalyssa.com/union-pacific-nyse-unp-has-a-pretty-healthy-track-record/ https://stormingheavenforalyssa.com/union-pacific-nyse-unp-has-a-pretty-healthy-track-record/#respond Fri, 05 Nov 2021 18:07:35 +0000 https://stormingheavenforalyssa.com/union-pacific-nyse-unp-has-a-pretty-healthy-track-record/ Warren Buffett said: “Volatility is far from synonymous with risk”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. Like many other companies Union Pacific Corporation (NYSE: UNP) uses debt. But the most important question is: what risk […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. Like many other companies Union Pacific Corporation (NYSE: UNP) uses debt. But the most important question is: what risk does this debt create?

Why Does Debt Bring Risk?

Debts and other liabilities become risky for a business when it cannot easily meet these obligations, either with free cash flow or by raising capital at an attractive price. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are ruthlessly liquidated by their bankers. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, constantly diluting shareholders, just to strengthen its balance sheet. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. When we think of a business’s use of debt, we first look at cash flow and debt together.

What is Union Pacific’s net debt?

You can click on the graph below for historical numbers, but it shows that as of September 2021, Union Pacific had $ 29.0 billion in debt, an increase from $ 27.6 billion, on a year. However, he also had $ 1.24 billion in cash, so his net debt is $ 27.7 billion.

NYSE: UNP Debt to Equity History November 5, 2021

A look at Union Pacific’s liabilities

We can see from the most recent balance sheet that Union Pacific had liabilities of US $ 5.11 billion maturing within one year and liabilities of US $ 43.3 billion maturing within one year. of the. In return, he had $ 1.24 billion in cash and $ 1.68 billion in receivables due within 12 months. Its liabilities are therefore $ 45.5 billion more than the combination of its cash and short-term receivables.

Union Pacific has a very large market capitalization of US $ 152.5 billion, so it could most likely raise funds to improve its balance sheet, should the need arise. However, it is always worth taking a close look at your ability to repay your debt.

We use two main ratios to inform us about the levels of debt compared to earnings. The first is net debt divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), while the second is the number of times its profit before interest and taxes (EBIT) covers its interest expense (or its coverage of interest, for short). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

With a debt to EBITDA ratio of 2.5, Union Pacific uses debt smartly but responsibly. And the fact that her last twelve months of EBIT was 7.9 times her interest expense ties in with that theme. One way for Union Pacific to beat its debt would be to stop borrowing more but continue to increase its EBIT by around 12%, as it did last year. When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the company’s future profitability will decide whether Union Pacific can strengthen its balance sheet over time. So if you are focused on the future you can check this out free report showing analysts’ earnings forecasts.

But our last consideration is also important, because a business cannot pay its debts with paper profits; he needs hard cash. The logical step is therefore to examine the proportion of this EBIT that corresponds to the actual free cash flow. Over the past three years, Union Pacific has recorded free cash flow of 65% of its EBIT, which is close to normal given that free cash flow excludes interest and taxes. This hard cash allows him to reduce his debt whenever he wants.

Our point of view

The good news is Union Pacific’s demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler. But frankly, we think its net debt to EBITDA undermines that impression a bit. Looking at all of the aforementioned factors together, it seems to us that Union Pacific can manage its debt quite comfortably. Of course, while this leverage can improve returns on equity, it brings more risk, so it’s worth keeping an eye out for. The balance sheet is clearly the area you need to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist off the balance sheet. We have identified 1 warning sign with Union Pacific and understanding them should be part of your investment process.

At the end of the day, sometimes it’s easier to focus on businesses that don’t even need to go into debt. Readers can access a list of growth stocks with zero net debt 100% free, at present.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Warrior Met Coal (NYSE: HCC) has a pretty healthy track record https://stormingheavenforalyssa.com/warrior-met-coal-nyse-hcc-has-a-pretty-healthy-track-record/ https://stormingheavenforalyssa.com/warrior-met-coal-nyse-hcc-has-a-pretty-healthy-track-record/#respond Fri, 05 Nov 2021 13:19:24 +0000 https://stormingheavenforalyssa.com/warrior-met-coal-nyse-hcc-has-a-pretty-healthy-track-record/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. It’s only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. It’s only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a business collapses. Like many other companies Warrior Met Coal, Inc. (NYSE: HCC) uses debt. But the most important question is: what risk does this debt create?

Why Does Debt Bring Risk?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, then it exists at their mercy. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. While it’s not too common, we often see indebted companies continually diluting their shareholders because lenders are forcing them to raise capital at a ridiculous price. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we think of a business’s use of debt, we first look at cash flow and debt together.

How much debt does Warrior Met Coal carry?

You can click on the graph below for historical numbers, but it shows that Warrior Met Coal had $ 340.5 million in debt as of September 2021, up from $ 379.7 million a year earlier. However, it has $ 276.9 million in cash offsetting that, which leads to net debt of around $ 63.6 million.

NYSE: HCC Debt to Equity History November 5, 2021

How strong is Warrior Met Coal’s balance sheet?

The latest balance sheet data shows Warrior Met Coal had $ 134.4 million in liabilities due within one year, and $ 474.9 million in liabilities due thereafter. On the other hand, it had US $ 276.9 million in cash and US $ 73.3 million in receivables due within one year. As a result, its liabilities exceed the sum of its cash and (short-term) receivables by $ 259.1 million.

While that might sound like a lot, it’s not that bad since Warrior Met Coal has a market cap of $ 1.18 billion, so it could likely strengthen its balance sheet by raising capital if needed. But we absolutely want to keep our eyes open for indications that its debt is too risky.

We use two main ratios to inform us about the levels of debt compared to earnings. The first is net debt divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), while the second is the number of times its profit before interest and taxes (EBIT) covers its interest expense (or its coverage of interest, for short). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

Warrior Met Coal has a very low debt to EBITDA ratio of 0.35 so it is strange to see low interest coverage as last year’s EBIT was only 1.0 times interest expense . So while we are not necessarily alarmed, we think his debt is far from negligible. Warrior Met Coal increased its EBIT by 2.6% last year. It’s far from incredible, but it’s a good thing when it comes to paying down debt. When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the company’s future profitability will decide whether Warrior Met Coal can strengthen its balance sheet over time. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, while the IRS may love accounting profits, lenders only accept hard cash. It is therefore worth checking to what extent this EBIT is supported by free cash flow. Fortunately for all shareholders, Warrior Met Coal has actually generated more free cash flow than EBIT over the past three years. There is nothing better than cash flow to stay in the good graces of your lenders.

Our point of view

The good news is that Warrior Met Coal’s demonstrated ability to convert EBIT into free cash flow delights us like a fluffy puppy does a toddler. But you have to admit that its hedging interest has the opposite effect. Looking at all of the aforementioned factors together, it seems to us that Warrior Met Coal can handle its debt quite comfortably. Of course, while this leverage can improve returns on equity, it comes with more risk, so it’s worth keeping an eye out for. The balance sheet is clearly the area you need to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist off the balance sheet. To do this, you need to know the 1 warning sign we spotted with Warrior Met Coal.

Of course, if you are the type of investor who prefers to buy stocks without going into debt, feel free to check out our exclusive list of cash net growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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