Imedia Brands Current Financial Leverage

IMBI -  USA Stock  

USD 6.10  0.10  1.67%

Imedia Brands' 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. Imedia Brands' financial risk is the risk to Imedia Brands 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).
Please see the analysis of Imedia Brands Fundamentals Over Time.

Imedia Bonds 

 
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Imedia Brands Total Debt is most likely to increase significantly in the upcoming years. The last year's value of Total Debt was reported at 53.84 Million. The current Debt Non Current is estimated to increase to about 53.5 M, while Debt Current is projected to decrease to roughly 2.6 M.

Imedia Current Financial Burden

Imedia Brands' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Imedia Brands' cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Imedia Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Imedia Brands' stakeholders.

Asset vs Debt

Equity vs Debt

For most companies, including Imedia Brands, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Imedia Brands the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Given that Imedia Brands' debt-to-equity ratio measures a company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Imedia Brands is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Imedia Brands to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Imedia Brands is said to be less leveraged. If creditors hold a majority of Imedia Brands' assets, the company is said to be highly leveraged.

Imedia Brands Quarterly Debt to Equity Ratio

4.028Share
Given the importance of Imedia Brands' capital structure, the first step in the capital decision process is for the management of Imedia Brands 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 Imedia Brands to issue bonds at a reasonable cost.

Imedia Brands Financial Leverage Rating

Imedia Brands bond ratings play a critical role in determining how much Imedia Brands 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 Imedia Brands' borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
7  Strong
Beneish M Score

Imedia Brands Debt to Cash Allocation

As Imedia Brands follows its natural business cycle, the capital allocation decisions will not magically go away. Imedia Brands' 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 53.65 M in liabilities with Debt to Equity (D/E) ratio of 1.1, which is about average as compared to similar companies. Imedia Brands has a current ratio of 1.36, which is within standard range for the sector.

Imedia Brands Total Assets Over Time

Imedia Brands Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Imedia Brands 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.

Imedia Brands Debt Ratio

    
  22.01   
It seems as most of the Imedia Brands' assets are financed through equity. 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 Imedia Brands' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Imedia Brands, which in turn will lower the firm's financial flexibility. Like all other financial ratios, an Imedia Brands debt ratio should be compared their industry average or other competing firms.
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Imedia Brands Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Imedia Brands, understanding its historical liability is critical in projecting Imedia Brands' 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 Imedia Brands uses its financing power over time.

Understaning Imedia Brands Use of Financial Leverage

Imedia Brands financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Imedia Brands'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 Imedia Brands assets, the company is considered highly leveraged. Understanding the composition and structure of overall Imedia Brands 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.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Total Debt53.8 M56.1 M
Debt Current3.2 M2.6 M
Debt Non Current50.7 M53.5 M
Issuance Repayment of Debt Securities-15.7 M-557.9 K
Debt to Equity Ratio 7.38  4.96 
iMedia Brands, Inc. operates as a multiplatform interactive video and digital commerce company in the United States. The company was formerly known as EVINE Live Inc. and changed its name to iMedia Brands, Inc. in July 2019. iMedia Brands, Inc. was incorporated in 1990 and is headquartered in Eden Prairie, Minnesota. Imedia Brands operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 645 people.

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Please see the analysis of Imedia Brands Fundamentals Over Time. Note that the Imedia Brands information on this page should be used as a complementary analysis to other Imedia Brands' 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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When running Imedia Brands price analysis, check to measure Imedia Brands' 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 Imedia Brands is operating at the current time. Most of Imedia Brands' value examination focuses on studying past and present price action to predict the probability of Imedia Brands' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Imedia Brands' price. Additionally, you may evaluate how the addition of Imedia Brands to your portfolios can decrease your overall portfolio volatility.
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The market value of Imedia Brands is measured differently than its book value, which is the value of Imedia that is recorded on the company's balance sheet. Investors also form their own opinion of Imedia Brands' value that differs from its market value or its book value, called intrinsic value, which is Imedia Brands' 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 Imedia Brands' market value can be influenced by many factors that don't directly affect Imedia Brands underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Imedia Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine Imedia Brands value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Imedia Brands' 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.