Replies to post #81418 on CV Sciences Inc (CVSI)

[Wolf-man jack]

WOLFY’s PAINT BY NUMBERS ANALYSIS

CVSI D/E Ratio 14.42 Percent
Very Good

CWBHF D/E Ratio 77.52 Percent Ouch!!!!


KEY TAKEAWAYS

Debt-to-equity (D/E) ratio compares a company’s total liabilities with its shareholder equity and can be used to assess the extent of its reliance on debt.

D/E ratios vary by industry and are best used to compare direct competitors or to measure change in the company’s reliance on debt over time.

Among similar companies, a higher D/E ratio suggests more risk, while a particularly low one may indicate that a business is not taking advantage of debt financing to expand.

Investors will often modify the D/E ratio to consider only long-term debt because it carries more risk than short-term obligations.


Dr. Joong J Fang Said;

What Is Debt-to-Equity (D/E) Ratio?

Debt-to-equity (D/E) ratio is used to evaluate a company’s financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity. D/E ratio is an important metric in corporate finance. It is a measure of the degree to which a company is financing its operations with debt rather than its own resources. Debt-to-equity ratio is a particular type of gearing ratio.

https://www.investopedia.com/terms/d/debtequityratio.asp

WISE WQLF SAYS;

Debt-financed growth may serve to increase earnings, and if the incremental profit increase exceeds the related rise in debt service costs, then shareholders should expect to benefit. However, if the additional cost of debt financing outweighs the additional income that it generates, then the share price may drop. The cost of debt and a company’s ability to service it can vary with market conditions. As a result, borrowing that seemed prudent at first can prove unprofitable later under different circumstances.

[Rev1800]

Wolf, I know there will be a lot of headwinds with traders, for a stock whose pps has gotten so low who will be thrilled with a five bagger from .045 but hoping that a return to positive cash flow and just eeking out something positive for eps, will catch the eyes of some analysts and move the stock back to a reasonable valuation over the next couple years. In other words, a few dollars instead of a few pennies pps.