COMPREHENSIVE CARE Current Financial Leverage

CHCR
 Stock
  

USD 0.0001  0.00  0.00%   

COMPREHENSIVE CARE's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. COMPREHENSIVE CARE's financial risk is the risk to COMPREHENSIVE CARE stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Continue to the analysis of COMPREHENSIVE CARE Fundamentals Over Time.
  
As of 08/09/2022, Debt Non Current is likely to grow to about 135.7 K, while Total Debt is likely to drop slightly above 13 M.
Given the importance of COMPREHENSIVE CARE's capital structure, the first step in the capital decision process is for the management of COMPREHENSIVE CARE to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of COMPREHENSIVE CARE CORP to issue bonds at a reasonable cost.

COMPREHENSIVE CARE Financial Leverage Rating

COMPREHENSIVE CARE CORP bond ratings play a critical role in determining how much COMPREHENSIVE CARE have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for COMPREHENSIVE CARE's borrowing costs.
Piotroski F Score
4  Poor
Beneish M Score

COMPREHENSIVE CARE CORP Debt to Cash Allocation

As COMPREHENSIVE CARE CORP follows its natural business cycle, the capital allocation decisions will not magically go away. COMPREHENSIVE CARE's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company currently holds 10.85 M in liabilities. COMPREHENSIVE CARE CORP has a current ratio of 0.06, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist COMPREHENSIVE CARE until it has trouble settling it off, either with new capital or with free cash flow. So, COMPREHENSIVE CARE's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like COMPREHENSIVE CARE CORP sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for COMPREHENSIVE to invest in growth at high rates of return. When we think about COMPREHENSIVE CARE's use of debt, we should always consider it together with cash and equity.

COMPREHENSIVE CARE Total Assets Over Time

COMPREHENSIVE CARE Assets Financed by Debt

The debt-to-assets ratio shows the degree to which COMPREHENSIVE CARE uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

COMPREHENSIVE CARE Debt Ratio

    
  712.54   
It seems most of the COMPREHENSIVE CARE's assets are financed through debt. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the COMPREHENSIVE CARE's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of COMPREHENSIVE CARE, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a COMPREHENSIVE CARE debt ratio should be compared their industry average or other competing firms.
Share Download
Share Download

COMPREHENSIVE CARE CORP Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of COMPREHENSIVE CARE, understanding its historical liability is critical in projecting COMPREHENSIVE CARE's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how COMPREHENSIVE CARE uses its financing power over time.
In order to fund their growth, businesses such as COMPREHENSIVE CARE widely use Financial Leverage. For most companies, financial capital is raised by issuing debt securities and by selling common stock. The debt and equity that make up COMPREHENSIVE CARE's capital structure have many risks and return implications. Leverage is an investment strategy of using borrowed money to increase the potential return of an investment. Please note, the concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.

Understaning COMPREHENSIVE CARE Use of Financial Leverage

COMPREHENSIVE CARE financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures COMPREHENSIVE CARE's total debt position, including all of 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 COMPREHENSIVE CARE assets, the company is considered highly leveraged. Understanding the composition and structure of overall COMPREHENSIVE CARE debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Last ReportedProjected for 2022
Total Debt14.9 M13 M
Debt Current14.7 M12.7 M
Debt Non Current132.2 K135.7 K
Issuance Repayment of Debt Securities2.6 M2.1 M
Debt to Equity Ratio(1.20) (1.29) 
Advanzeon Solutions, Inc., through its subsidiary, Pharmacy Value Management Solutions, Inc., administers and operates a sleep apnea program known as SleepMaster Solutions. On September 7, 2020, Advanzeon Solutions, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. COMPREHENSIVE CARE operates under Medical Care Facilities classification in the United States and is traded on New York Stock Exchange. It employs 2 people.
Please read more on our technical analysis page.

COMPREHENSIVE CARE Investors Sentiment

The influence of COMPREHENSIVE CARE's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in COMPREHENSIVE. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards COMPREHENSIVE CARE in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, COMPREHENSIVE CARE's short interest history, or implied volatility extrapolated from COMPREHENSIVE CARE options trading.

Pair Trading with COMPREHENSIVE CARE

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if COMPREHENSIVE CARE position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in COMPREHENSIVE CARE will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to COMPREHENSIVE CARE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace COMPREHENSIVE CARE when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back COMPREHENSIVE CARE - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling COMPREHENSIVE CARE CORP to buy it.
The correlation of COMPREHENSIVE CARE is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as COMPREHENSIVE CARE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if COMPREHENSIVE CARE CORP moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for COMPREHENSIVE CARE can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to the analysis of COMPREHENSIVE CARE Fundamentals Over Time. Note that the COMPREHENSIVE CARE CORP information on this page should be used as a complementary analysis to other COMPREHENSIVE CARE's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Complementary Tools for COMPREHENSIVE Stock analysis

When running COMPREHENSIVE CARE CORP price analysis, check to measure COMPREHENSIVE CARE's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy COMPREHENSIVE CARE is operating at the current time. Most of COMPREHENSIVE CARE's value examination focuses on studying past and present price action to predict the probability of COMPREHENSIVE CARE's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move COMPREHENSIVE CARE's price. Additionally, you may evaluate how the addition of COMPREHENSIVE CARE to your portfolios can decrease your overall portfolio volatility.
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Is COMPREHENSIVE CARE's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of COMPREHENSIVE CARE. If investors know COMPREHENSIVE will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about COMPREHENSIVE CARE listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
12 K
Quarterly Revenue Growth YOY
0.86
Return On Assets
-0.71
The market value of COMPREHENSIVE CARE CORP is measured differently than its book value, which is the value of COMPREHENSIVE that is recorded on the company's balance sheet. Investors also form their own opinion of COMPREHENSIVE CARE's value that differs from its market value or its book value, called intrinsic value, which is COMPREHENSIVE CARE's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because COMPREHENSIVE CARE's market value can be influenced by many factors that don't directly affect COMPREHENSIVE CARE's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between COMPREHENSIVE CARE's value and its price as these two are different measures arrived at by different means. Investors typically determine COMPREHENSIVE CARE value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, COMPREHENSIVE CARE's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

What is Financial Leverage?

Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.

Leverage and Capital Costs

The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.

Benefits of Financial Leverage

Leverage provides the following benefits for companies:
  • Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
  • It provides a variety of financing sources by which the firm can achieve its target earnings.
  • Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.