cash flow – 4 Walls And A View http://4wallsandaview.com/ Sat, 12 Mar 2022 08:53:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://4wallsandaview.com/wp-content/uploads/2021/06/icon-5.png cash flow – 4 Walls And A View http://4wallsandaview.com/ 32 32 1 Penny Stock from the Debt-Free Electric Vehicle and Drone Sector to Add to Your Watchlist https://4wallsandaview.com/1-penny-stock-from-the-debt-free-electric-vehicle-and-drone-sector-to-add-to-your-watchlist/ Sat, 12 Mar 2022 04:37:30 +0000 https://4wallsandaview.com/1-penny-stock-from-the-debt-free-electric-vehicle-and-drone-sector-to-add-to-your-watchlist/ About Rattan India Enterprises: The company is the flagship company of Rattanindia Group for its new age growth business. The company is focused on new era technologies capable of bringing about enormous transformation. With a focus on green mobility, the company has ventured into electric mobility through Revolt Motors, the leading players in electric motorcycles […]]]>

About Rattan India Enterprises:

The company is the flagship company of Rattanindia Group for its new age growth business. The company is focused on new era technologies capable of bringing about enormous transformation.

With a focus on green mobility, the company has ventured into electric mobility through Revolt Motors, the leading players in electric motorcycles in the country. In addition, these solutions are affordable and easily accessible. Revolt is India’s first AI-enabled motorcycle that does not compromise on aesthetics and performance.

Similarly, to prepare for the Make In India government mission, the company has launched drone operations in the country through its subsidiary NeoSky India Limited. Drones have the potential to transform key sectors of the economy including logistics, agriculture, mining, infrastructure, surveillance, emergency response, transportation, geospatial mapping, defense and law enforcement.

RattanIndia Finances

RattanIndia Finances

The company’s finances are improving, with revenues showing a steady increase. Moreover, in the just ended December quarter, the company increased its loss on a quarterly basis to Rs. 0.90 crore. Also, in the same quarter, the profit of the company was Rs. 0.1 crore. The company maintains a healthy cash flow of Rs. 67.09 crores. This is a virtually debt free business which is also a good indicator of business finances.

Conclusion

Conclusion

The company with the changing landscape has seized the right opportunity at the right time and although it is not currently a profitable company, it is sure to make its mark moving forward with companies in growth areas. Losses may be due to its initial investments, and in due time it can break even and then become a profitable business.

Warning

Warning

The title is discussed mainly because of its foray into future technologies and one, after a thorough analysis, is considering taking bets on it. Although we mention it just to add it to your watch list and certainly if you seize the opportunity at the right time, you can reap huge gains in the stock.

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These 4 metrics indicate that SpartanNash (NASDAQ:SPTN) is using debt a lot https://4wallsandaview.com/these-4-metrics-indicate-that-spartannash-nasdaqsptn-is-using-debt-a-lot/ Sun, 27 Feb 2022 14:55:20 +0000 https://4wallsandaview.com/these-4-metrics-indicate-that-spartannash-nasdaqsptn-is-using-debt-a-lot/ Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, […]]]>

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. We note that SpartanNash Company (NASDAQ:SPTN) has debt on its balance sheet. But the more important question is: what risk does this debt create?

Why is debt risky?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. If things go really bad, lenders can take over the business. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. When we look at debt levels, we first consider cash and debt levels, together.

See our latest review for SpartanNash

How much debt does SpartanNash have?

As you can see below, SpartanNash had $405.7 million in debt as of January 2022, up from $442.8 million the previous year. However, he has $10.7 million in cash to offset this, resulting in a net debt of approximately $395.1 million.

NasdaqGS: SPTN Debt to Equity History February 27, 2022

A look at SpartanNash’s responsibilities

We can see from the most recent balance sheet that SpartanNash had liabilities of US$655.8 million due in one year, and liabilities of US$768.1 million due beyond. As compensation for these obligations, it had cash of US$10.7 million and receivables valued at US$361.7 million due within 12 months. Thus, its liabilities outweigh the sum of its cash and (current) receivables of US$1.05 billion.

Given that this deficit is actually greater than the company’s market capitalization of $1.02 billion, we think shareholders really should be watching SpartanNash’s debt levels, like a parent watching their child go shopping. bike for the first time. In the scenario where the company were to quickly clean up its balance sheet, it seems likely that shareholders would suffer significant dilution.

We use two main ratios to inform us about debt to earnings levels. The first is net debt divided by earnings before interest, taxes, depreciation and amortization (EBITDA), while the second is how often its earnings before interest and taxes (EBIT) covers its interest expense (or its interests, for short). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

SpartanNash has net debt worth 2.1x EBITDA, which isn’t too much, but its interest coverage looks a little low, with EBIT at just 6.8x interest expense. . While these numbers don’t alarm us, it’s worth noting that the cost of corporate debt has a real impact. Shareholders should know that SpartanNash’s EBIT fell 26% last year. If this decline continues, it will be more difficult to repay debts than to sell foie gras at a vegan convention. The balance sheet is clearly the area to focus on when analyzing debt. But it’s future earnings, more than anything, that will determine SpartanNash’s ability to maintain a healthy balance sheet in the future. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, while the taxman may love accounting profits, lenders only accept cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Fortunately for all shareholders, SpartanNash has actually produced more free cash flow than EBIT for the past three years. This kind of high cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.

Our point of view

Reflecting on SpartanNash’s attempt to (not) increase its EBIT, we are certainly not enthusiastic. But on the bright side, its conversion from EBIT to free cash flow is a good sign and makes us more optimistic. Looking at the balance sheet and taking all of these factors into account, we think debt makes SpartanNash stock a bit risky. Some people like that kind of risk, but we’re aware of the potential pitfalls, so we’d probably prefer it to take on less debt. 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 outside of the balance sheet. For example, we found 2 warning signs for SpartanNash which you should be aware of before investing here.

In the end, it’s often best to focus on companies that aren’t in debt. You can access our special list of these companies (all with a track record of earnings growth). It’s free.

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

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These 4 measures indicate that Trident (NSE: TRIDENT) uses debt safely https://4wallsandaview.com/these-4-measures-indicate-that-trident-nse-trident-uses-debt-safely/ Thu, 10 Feb 2022 04:14:37 +0000 https://4wallsandaview.com/these-4-measures-indicate-that-trident-nse-trident-uses-debt-safely/ Warren Buffett said: “Volatility is far from synonymous with risk. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. Above all, Trident Limited (NSE: TRIDENT) is in debt. But should shareholders worry about its […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. Above all, Trident Limited (NSE: TRIDENT) is in debt. But should shareholders worry about its use of debt?

When is debt a problem?

Debt and other liabilities become risky for a business when it cannot easily meet those 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. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. The first step when considering a company’s debt levels is to consider its cash and debt together.

See our latest analysis for Trident

What is Trident’s debt?

The image below, which you can click on for more details, shows that as of September 2021, Trident had a debt of ₹13.3 billion, up from ₹8.95 billion in a year. However, since he has a cash reserve of ₹3.98 billion, his net debt is lower at around ₹9.29 billion.

NSEI: TRIDENT Debt to Equity February 10, 2022

How healthy is Trident’s balance sheet?

The latest balance sheet data shows that Trident had liabilities of ₹16.2 billion due within a year, and liabilities of ₹6.71 billion falling due thereafter. As compensation for these obligations, it had cash of ₹3.98 billion as well as receivables valued at ₹4.81 billion due within 12 months. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables by ₹14.1 billion.

Considering that Trident has a market capitalization of ₹299.3 billion, it is hard to believe that these liabilities pose a big threat. However, we think it’s worth keeping an eye on the strength of its balance sheet, as it can change over time.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Trident’s net debt is only 0.67 times its EBITDA. And its EBIT easily covers its interest charges, which is 13.7 times the size. One could therefore say that he is no more threatened by his debt than an elephant is by a mouse. Even more impressive is that Trident increased its EBIT by 168% year-over-year. This boost will make it even easier to pay off debt in the future. The balance sheet is clearly the area to focus on when analyzing debt. But it is future earnings, more than anything, that will determine Trident’s ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Over the past three years, Trident has recorded free cash flow of 70% of its EBIT, which is about normal, given that free cash flow excludes interest and taxes. This free cash flow puts the company in a good position to repay its debt, should it arise.

Our point of view

Fortunately, Trident’s impressive interest coverage means it has the upper hand on its debt. And this is only the beginning of good news since its EBIT growth rate is also very encouraging. Overall, we don’t think Trident is taking bad risks, as its leverage looks modest. The balance sheet therefore seems rather healthy to us. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. We have identified 3 warning signs with Trident, and understanding them should be part of your investment process.

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

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

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California portfolio with LA Properties secures $223 million loan https://4wallsandaview.com/california-portfolio-with-la-properties-secures-223-million-loan/ Mon, 31 Jan 2022 08:10:16 +0000 https://4wallsandaview.com/california-portfolio-with-la-properties-secures-223-million-loan/ One of the properties financed is in Century City. A California portfolio including a number of properties in Los Angeles has received $223 million in permanent funding. The portfolio, held by a private investor, includes three multi-family properties with a total of 1,140 units; a single-tenant commercial building; a self-storage property with RV storage space; […]]]>

One of the properties financed is in Century City.

A California portfolio including a number of properties in Los Angeles has received $223 million in permanent funding.

The portfolio, held by a private investor, includes three multi-family properties with a total of 1,140 units; a single-tenant commercial building; a self-storage property with RV storage space; and two land leases.
Locally, a 1.64 acre Century City cooling plant with a ground lease was part of the deal.


The other land lease at issue was a property leased from Lowes Companies Inc. in Rancho Cucamonga.
In a land lease, different companies own the land and any improvements to the land or buildings on the land. This arrangement allows the landowner to get a monthly income without doing any work, as the company that leases the land is responsible for everything, including the property taxes. For the business that leases the land, a ground lease allows it to use desirable real estate.


The multifamily properties involved in the financing were the 892 Park Regency apartments in Walnut Creek; the 167-unit Concord Square Apartments in Reseda; and the 81-unit NMS Warner Center at Warner Center.


The Sand Canyon Self Storage Center in Santa Clarita was also part of the funding. The property has 792 storage units and 129 RV storage spaces.
A commercial building 100% leased to Gelson’s in Laguna Beach was also part of the financing.

George Mitsanas of San Francisco-based Gantry structured the loans, which were placed through four correspondents from Gantry’s life insurance company with the private investor. Correspondents of life insurance companies are lenders who contribute directly to the financing of loans.



“The current climate of long-term debt on existing assets remains extremely attractive for most types of commercial real estate assets,” Mitsanas, director of Gantry, said in a statement. “As advisor to the borrower and servicing agent to the lender, we pride ourselves on working to identify the best financing structures for all parties involved. In this case, we were able to place the loans for each unique asset type with the appropriate lender for that product, maximizing value for the borrower on valuation, rates, terms and operating cash flow. later.


Mitsanas added that he expects 2022 to be a “good year for recapitalization deals as commercial real estate investors continue to review portfolio holdings for relevant maturities.”

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Bank of Maharashtra partners with Lendingkart to offer low-cost loans to MSMEs https://4wallsandaview.com/bank-of-maharashtra-partners-with-lendingkart-to-offer-low-cost-loans-to-msmes/ Tue, 25 Jan 2022 07:08:52 +0000 https://4wallsandaview.com/bank-of-maharashtra-partners-with-lendingkart-to-offer-low-cost-loans-to-msmes/ Fintech company Lendingkart said on Tuesday that it has partnered with Bank of Maharashtra to co-lend loans to micro, small and medium enterprises (MSMEs). Through this partnership, Lendingkart aims to make cost-effective credit available to MSME borrowers at their doorstep, powered by the Lendingkart “2gthr” zero-touch technology platform. Lendingkart explained that “2gthr” allows banks and […]]]>

Fintech company Lendingkart said on Tuesday that it has partnered with Bank of Maharashtra to co-lend loans to micro, small and medium enterprises (MSMEs). Through this partnership, Lendingkart aims to make cost-effective credit available to MSME borrowers at their doorstep, powered by the Lendingkart “2gthr” zero-touch technology platform.

Lendingkart explained that “2gthr” allows banks and NBFCs to seamlessly integrate and disburse unsecured commercial loans up to 10 lakh to MSME borrowers across the country in a real environment. The platform also allows co-lenders to underwrite business loan applications using the “cred8” cash flow based valuation model with premium dashboards outlining credit visibility. end-to-end funnel on loans at different stages.

“We aim to improve financial inclusion to complement the Reserve Bank of India’s vision and enable MSME borrowers to achieve higher growth in their respective sectors,” said Harshvardhan Lunia, CEO and Co-Founder of Lendingkart. existing credit gaps in the financial services market and together we aim to solve and contribute to the country’s GDP growth. We are well prepared to leverage this partnership to achieve common goals to serve the MSME segment in India,” Lunia added.

As part of the deal, Bank of Maharashtra will also leverage Lendingkart’s “xlr8” origination platform to distribute loans to MSMEs from multi-channel strategies supporting its vision of financial inclusion.

“The partnership under the co-loan agreement will result in significant disbursements under the priority sector loans and will make funds available to the ultimate beneficiary at an affordable cost. The Bank of Maharashtra encourages such agreements and adopts digital channels to facilitate the provision of credit in a transparent manner. This partnership will pave the way for sustainable growth of the bank’s MSME lending portfolio. Customers will also benefit from profitable loans in unserved and underserved areas,” said AS Rajeev, Managing Director and CEO of Bank of Maharashtra.

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Here’s why Telekom Austria (VIE:TKA) can manage its debt responsibly https://4wallsandaview.com/heres-why-telekom-austria-vietka-can-manage-its-debt-responsibly/ Mon, 24 Jan 2022 04:47:24 +0000 https://4wallsandaview.com/heres-why-telekom-austria-vietka-can-manage-its-debt-responsibly/ Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. Like many other companies […]]]>

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. Like many other companies Telekom Austria AG (LIFE:TKA) uses debt. But should shareholders worry about its use of debt?

When is debt a problem?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. In the worst case, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. By replacing dilution, however, debt can be a great 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 has is to look at its cash and debt together.

See our latest analysis for Telekom Austria

What is Telekom Austria’s net debt?

The graph below, which you can click on for more details, shows that Telekom Austria had a debt of 2.55 billion euros in September 2021; about the same as the previous year. However, because it has a cash reserve of €675.3m, its net debt is lower, at around €1.87bn.

WBAG: TKA Debt to Equity January 24, 2022

How strong is Telekom Austria’s balance sheet?

According to the latest published balance sheet, Telekom Austria had liabilities of €2.91 billion due within 12 months and liabilities of €2.51 billion due beyond 12 months. On the other hand, it has cash of €675.3 million and €920.5 million in receivables at less than one year. Thus, its liabilities total 3.82 billion euros more than the combination of its cash and short-term receivables.

That’s a mountain of leverage compared to its market capitalization of 5.11 billion euros. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet quickly.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Telekom Austria has a net debt of just 1.3 times EBITDA, indicating that it is certainly not an imprudent borrower. And it has interest coverage of 8.8 times, which is more than enough. And we also warmly note that Telekom Austria increased its EBIT by 20% last year, which makes it easier to manage its debt. 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 Telekom Austria 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, a business needs free cash flow to pay off its debts; book profits are not enough. It is therefore worth checking how much of this EBIT is supported by free cash flow. Over the past three years, Telekom Austria has generated free cash flow amounting to 95% of its EBIT, a very solid result, above what we expected. This positions him well to pay off debt if desired.

Our point of view

Fortunately, Telekom Austria’s impressive EBIT to free cash flow conversion means it has the upper hand on its debt. But, on a darker note, we’re a bit concerned about his total passive level. Looking at all the above factors together, it seems to us that Telekom Austria can manage its debt quite comfortably. Of course, while this leverage can improve return on equity, it comes with more risk, so it’s worth keeping an eye out for. 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 outside of the balance sheet. For example, we found 2 warning signs for Telekom Austria which you should be aware of before investing here.

If you are interested in investing in companies that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

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

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Smart Ways Businesses Can Try To Pay Off Debts Faster https://4wallsandaview.com/smart-ways-businesses-can-try-to-pay-off-debts-faster/ Fri, 14 Jan 2022 20:54:02 +0000 https://4wallsandaview.com/smart-ways-businesses-can-try-to-pay-off-debts-faster/ For businesses that have fallen into debt, quick action can help them get out of debt before things get worse. There are many methods companies use to pay off their debts faster. While these methods are effective, they may not be suitable for all businesses. Therefore, it is important to understand how these methods work […]]]>

For businesses that have fallen into debt, quick action can help them get out of debt before things get worse.

Consolidating_Debts_for_Lower_Mortgage_Rate.png

There are many methods companies use to pay off their debts faster. While these methods are effective, they may not be suitable for all businesses. Therefore, it is important to understand how these methods work and decide for yourself if they are right for you. To help you find the best and fastest way to deleverage your business, we’ll go over the smartest methods you can use.

Debt consolidation for a lower mortgage rate

Debt consolidation loans allow you to pay off multiple debts and combine them into one debt, which can be easier to manage. Applying for Easy online debt consolidation is a great way for businesses to take care of multiple debts and pay them all off at once and you don’t even have to leave your office or home to do it. Consolidating your debts into one payment will get you a lower interest rate than you had before. This will save you money in the long run and also give you plenty of time to think about how you want to manage your next steps. Another benefit of consolidating your debt is that it gives more cash flow, allowing the business to make more sales or raise prices. This increase in income can help get rid of other types of debt like credit card debt or personal loans faster.

Refinance loans with better conditions

Another great way for businesses to pay off debt faster is to refinance loans. With this method, you refinance your loan with another lender at a lower interest rate. This will save you money each month on your payments and get rid of debt faster. Refinancing is not always an option since the purpose of taking out certain loans is for specific purposes that are meant to last over time. Refinancing into another type of loan may not be possible, so it is important to consider all the conditions before making a decision. If you are unsure if refinancing will work for you, you may want to speak to a professional who can advise you on your situation.

Get a second mortgage or home equity line of credit

Getting a second mortgage or home equity line of credit (HELOC) can help you borrow against the equity in your home, which can be a great way to consolidate debt or pay off outstanding balances. There are benefits and risks associated with a HELOC you should therefore consult them before making the request. A HELOC can give you the extra cash you need in the short term, but keep in mind that this loan will earn interest from day one. You will also have to pay taxes on the interest, which means spending even more money. The good news is that you can always pay off your HELOC faster by making additional payments on top of your regular monthly amount.

Debt settlement with collection agencies

Debt settlement is another great way to pay off your outstanding balances. With this method, you will need to contact the Recovering agency first and try to settle for less than what you are willing to pay each month. Once you agree to the terms, the creditor will stop reporting it as a delinquent. Settling your debts can save you money by getting rid of accounts that have been flagged as overdue because they carry high interest rates. However, this often depends on the type of debt accounts reported. If you owe income taxes or student loans, the settlement pretty much means you’ll never see that amount again, which is why it’s important to do plenty of research before finalizing any decisions involving these types.

Get a personal loan

Getting a personal loan is another great way to pay off your debts faster. Since you already have good credit, it will make it easier for you to apply for such loans. Sometimes getting a personal loan from the same lender as your business loan can be beneficial because they may offer lower rates and better terms that could help you save money on different aspects of your debt, such as fees. financing or interest payments. If you already owe money to the same company, refinancing into a single personal loan can make things easier and also get rid of some bills faster. Remember to consider the pros and cons of taking out a personal loan, such as terms, rates, and penalties, so you can make the best decision.

Get_a_personal_loan.png

To successfully deleverage your business, it’s important that you weigh your options carefully before settling on a plan. Some methods may work better for certain industries or types of businesses, while others may not be suitable depending on the type of debt and amount owed. However, the overview of the methods mentioned above should at least help put your mind in the right direction so that you can start working on a solution that will solve your debt problems as soon as possible.

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These 4 metrics indicate that Vertoz Advertising (NSE: VERTOZ) is using debt reasonably well https://4wallsandaview.com/these-4-metrics-indicate-that-vertoz-advertising-nse-vertoz-is-using-debt-reasonably-well/ Mon, 10 Jan 2022 02:57:25 +0000 https://4wallsandaview.com/these-4-metrics-indicate-that-vertoz-advertising-nse-vertoz-is-using-debt-reasonably-well/ Legendary fund manager Li Lu (whom Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital.” When we think about how risky a business is, we always like to look at its use of debt because debt overload can […]]]>


Legendary fund manager Li Lu (whom Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital.” 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. We can see that Vertoz Advertising Limited (NSE: VERTOZ) uses debt in its business. But does this debt worry shareholders?

What risk does debt entail?

Debt helps a business until the business struggles to repay it, either with new capital or with free cash flow. If things really go wrong, lenders can take over the business. 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. The first step in examining a business’s debt levels is to consider its cash flow and debt together.

See our latest review for Vertoz Advertising

What is Vertoz Advertising’s debt?

The image below, which you can click for more details, shows that in September 2021, Vertoz Advertising was owed 123.1m in debt, up from ₹ 116.1m in a year. However, given that it has a cash reserve of 31.5 million euros, its net debt is less, at around 91.5 million euros.

History of debt on equity of NSEI: VERTOZ January 10, 2022

Is Vertoz Advertising’s balance sheet healthy?

According to the latest published balance sheet, Vertoz Advertising had liabilities of 232.9m at 12 months and liabilities of 28.0m ₹ due beyond 12 months. In return, he had 31.5 million in cash and 279.5 million in receivables due within 12 months. So he actually ₹ 50.1m Following liquid assets as total liabilities.

This surplus suggests that Vertoz Advertising has a conservative balance sheet, and could probably eliminate its debt without too much difficulty.

We measure a company’s indebtedness relative to its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation, and amortization (EBITDA) and calculating the ease with which its earnings before interest and taxes (EBIT ) covers its interests. costs (interest coverage). 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).

Vertoz Advertising has net debt of just 0.84 times EBITDA, indicating that he is certainly not a reckless borrower. And this view is underpinned by the strong interest coverage, with EBIT standing at 8.5 times last year’s interest expense. Even more impressively, Vertoz Advertising increased its EBIT by 1270% year over year. This boost will make it even easier to pay off debt in the future. When analyzing debt levels, the balance sheet is the obvious place to start. But it is the results of Vertoz Advertising that will influence the performance of the balance sheet in the future. So, when considering debt, it is really worth looking at the profit trend. Click here for an interactive snapshot.

Finally, a business can only repay its debts with hard cash, not with accounting profits. 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, Vertoz Advertising has spent a lot of money. While this may be the result of spending for growth, it makes debt much riskier.

Our point of view

The good news is that Vertoz Advertising’s demonstrated ability to increase EBIT thrills us like a fluffy puppy does a toddler. But we have to admit that its conversion from EBIT to free cash flow has the opposite effect. Looking at all of the above factors together, it seems to us that Vertoz Advertising can manage 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. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist off the balance sheet. For example, we discovered 2 warning signs for Vertoz Advertising which you need to know before investing here.

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 any stock 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 any of the stocks mentioned.


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How to be in better financial health in 2022 – Forbes Advisor INDIA https://4wallsandaview.com/how-to-be-in-better-financial-health-in-2022-forbes-advisor-india/ Sat, 01 Jan 2022 03:30:00 +0000 https://4wallsandaview.com/how-to-be-in-better-financial-health-in-2022-forbes-advisor-india/ A new year is a good time to review our financial decisions. It’s time to track our spending habits, our investments over the past year and whether those decisions were in line with our overall financial goals. The intention here is not to criticize or regret what has happened, but rather to understand our own […]]]>


A new year is a good time to review our financial decisions. It’s time to track our spending habits, our investments over the past year and whether those decisions were in line with our overall financial goals. The intention here is not to criticize or regret what has happened, but rather to understand our own financial behavior. It can help us align our behavior with our life goals or rethink some of our financial decisions.

Regular review is also an important part of financial planning. Managing money isn’t easy, and it requires an honest examination of your own financial habits, biases, expectations, and cash flow. But it is essential if we are to instill financial discipline and understand our own behavior. Ultimately, this is the first step towards improving your financial health.

Steps to improve your financial health in 2022

Financial health refers to your monetary state. Good financial health is characterized by a steady income stream, a growing cash balance, a strong portfolio, and regular spending that does not show sudden spikes. Getting to this point can seem difficult, especially when you are starting out with limited income and heavy expenses.

This is where financial planning comes in. A good financial plan should help keep you on track to achieving your overall financial goals.

1) Review your investments

It is essential that you periodically review our portfolio to assess the condition of your assets, their maturity and to keep an eye on your cash flow. With age, your investment portfolio will also change depending on your risk profile. For example, you are more open to high risk, high return investments at a young age when you have few dependents. On the other hand, you are likely to be more careful in your 40s where you may have multiple responsibilities and cannot afford to take high risks.

The year-end portfolio review is also the perfect opportunity to list all of your investments in one place to see your overall asset allocation. This includes all asset classes including gold real estate, mutual funds, EPF, and stocks. The next step is to track the returns on your investments throughout the year and see if they are meeting your expectations. So if you were expecting a 12% return from a mid-cap stock, where is your investment now?

At the same time, you can compare an asset’s weighting against its returns to determine the balance between high return and stable investments. The portfolio review gives you an accurate picture of the weighting of each asset, the overall returns of your portfolio and re-evaluate this distribution based on your current risk tolerance.

2) Consider unnecessary expenses

One of the main goals of a review is to understand our spending habits. While we may aim to follow predefined spending goals, most of us are often unaware of our actual buying habits. This is usually why our end-of-month savings are sometimes lower than expected. Fortunately, we have the means to control our actual spending more reliably.

The first would be to try and maintain a budget spreadsheet each month that you record every purchase or release from your account. If managing a spreadsheet seems too difficult, check your bank account, including all credit card purchases. There’s a good chance you’ll find unnecessary spending or unhealthy spending habits, like an annual subscription to a magazine you no longer follow.

Harmful spending habits could include the tendency to buy high-end electrical gadgets or overspending in restaurants. Identifying these patterns is the first step in dealing with them. Cut back on dining out and carefully review your subscriptions. On the flip side, it can also help you plan for unforeseen expenses like hosting clients for lunch or buying gifts for friends or colleagues. You can set aside a specific amount each month for such expenses.

3) Automate your savings or investment

One of the safest ways to ensure sufficient cash flow for savings or investments is to automate it. This can be all the more useful for those who find themselves spending more than they should. The annual review can help clarify your spending habits and how much you should invest monthly, quarterly, semi-annually, or annually in your portfolio.

Automating your savings becomes even more important for investments that may seem small today, but are needed in the long run. This includes investing in a retirement fund in your 30s or health insurance when you are young and fit. By automating these savings, we can ensure that our biases do not prevent us from making these investments.

You can set up automatic transfers in sync with your income cycle to ensure these allocations are made as soon as you have sufficient funds in your account. It also ensures that you are never behind on your payments or premiums. It also ensures that you have a clear limit on your spending potential, it helps you maintain financial discipline.

4) Channel the money in different avenues of investment

How diverse is your portfolio? You must have a pretty good idea by now, thanks to the portfolio review. When you take a close look at your overall monetary situation, this is a perfect opportunity to expand it further. But a portfolio reallocation should be mindful of current financial conditions and your own risk profile.

For example, while pharmaceutical companies took the lead last year, in 2022, sectors like fintech, real estate, manufacturing, logistics and autos are expected to pick up. A wave of IPOs are also expected to hit the market this year, providing attractive investment opportunities in high growth companies. The growth of startups and the flow of investments into the digital economy can help you expand your portfolio to include more small-cap, high-growth companies. With the recovery of some of these stocks, this is the perfect opportunity to further diversify your assets into stocks.

At the same time, investments in large corporations, government securities and mutual funds will ensure a more stable balance. Likewise, you can consider expanding into different markets, such as the United States, to limit your exposure to a single economy. It can also help you avoid the impact of the depreciation of the rupee.

2022 also offers the opportunity to work towards investing in long-term investments like real estate or to further strengthen your retirement corpus by investing in retirement funds.

5) Strengthen emergency funds

The past two years have shown us the importance of savings and a nest egg that can help you get through tough times. An emergency fund is designed to provide us with a financial alternative in the event of an adverse event, such as a sudden loss of income. It can also include big unforeseen expenses, such as major repairs to your car.

Loss of income or sudden expenses can not only impact our overall lifestyle but can also put our wallet at risk as we fail to make timely payments or are forced to cash out some of the money. between them in order to face our debts. An emergency fund is intended to cover all these short-term expenses. This can represent three to six months of your salary depending on your income and expenses.

For many of us, our debts can often increase with age as we have to think about children’s school fees, IMEs, loan payments, or the rent on the house. People with a high number of liabilities should therefore build a fund that can withstand a loss of income of at least six months.

To avoid overspending the fund, it is best to put it in a separate savings account, especially if the fund is small enough. For a large fund, it is best to invest in a very liquid fund such as mutual loan funds where your money can grow while allowing you to quickly cash out your assets when needed.

6) review your debt and rework your budget

Debt can seem like a heavy burden, but it is often a necessary part of our modern life. And in some cases, it may even be better than making large cash payments for every purchase. That said, it’s always best to know your debts at the start of the year. Prioritize your debt based on interest rates. It is always best to pay off high interest debts first. However, low or zero interest debt can be paid on schedule and can help you manage your finances in a more planned way.

Examining your debts and payments is necessary to establish your budget. As you browse through last year’s finances, you will see a clear pattern of expenses, investments, and income. These will help you set a more realistic budget that you can stick to. You can continue to tweak it as you rework your investment decisions throughout the year.

Final result

Finally, let 2022 be the year you work to improve your financial literacy. Good financial health has a direct impact on our well-being. It can help us meet our basic and non-basic needs, fully explore our potential, and enable us to lead lives on our own terms. As we age, this allows us to take time off when needed, to provide for the needs of our loved ones and to ensure good medical follow-up.

Financial literacy is the first step in learning about money and how it works. Today, you also have easy access to professional help in managing your finances through multiple platforms, whether digital or through professionals. So take the time to understand your own behavior, your goals, and how to align the two.


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OfBusiness in India valued at $ 5 billion for funding of $ 325 million – TechCrunch https://4wallsandaview.com/ofbusiness-in-india-valued-at-5-billion-for-funding-of-325-million-techcrunch/ Mon, 20 Dec 2021 08:48:45 +0000 https://4wallsandaview.com/ofbusiness-in-india-valued-at-5-billion-for-funding-of-325-million-techcrunch/ OfBusiness, a New Delhi-based startup that sells industrial products and provides credit to small businesses, got its fourth round of funding this year and is now valued at around $ 5 billion. Alpha Wave Global, Tiger Global and SoftBank Vision Fund 2 led the startup’s $ 325 million Series G funding round. Alpha Wave Global, […]]]>


OfBusiness, a New Delhi-based startup that sells industrial products and provides credit to small businesses, got its fourth round of funding this year and is now valued at around $ 5 billion.

Alpha Wave Global, Tiger Global and SoftBank Vision Fund 2 led the startup’s $ 325 million Series G funding round. Alpha Wave Global, formerly known as Falcon Edge Capital, has invested in OfBusiness through its new $ 10 billion plus fund called Alpha Wave Ventures II.

TechCrunch, which first reported on the new fund and the rebranding of Falcon Edge Capital, reported in October that OfBusiness was in talks with Tiger Global and Alpha Wave Global to raise another round of valuation. over $ 4.6 billion.

This is OfBusiness’s fourth round of funding this year. The startup was valued at around $ 800 million in a round it closed in April of this year.

Work functions as a commodity aggregator and a procurement finance provider. The startup works with banks to provide lines of credit to small and medium-sized businesses that have annual revenue of more than $ 3 million. The six-year-old startup, co-founded by Asish Mohapatra, a former VC, says it operates in nine business-to-business commodity supply chains.

The platform collects customer activity data on which it relies to take out loans to companies that use the OfBusiness platform for raw material sourcing and tendering.

OfBusiness has come a long way in the past six years. A few months after its launch, the startup realized that the biggest problem facing its customers was working capital. After this awareness, Mohapatra began hiring key executives to create a financing offer. In a podcast last year with an investor, he said when the awareness hit him he had little to no understanding of underwriting and how to build a financial business.

“OfBusiness is on track to create a B2B ecosystem that blends large scale with profitability, health and engagement,” Mohapatra said in a statement.

“Our progress over the past 3 years across all of our 3 activities (B2B Commerce, Financing and SAAS market) has been rapid, but there is still a long way to go given the depth and fragmented market structure and unorganized B2B business in India. We believe that we are at the dawn of the B2B revolution in the country and have the privilege of driving it forward. “

The startup, which has been profitable for the past four years, said its recent expansions have helped it quadruple revenue from its business this year to $ 1.7 billion with a net profit of 42 , $ 5 million, Mohapatra said.

Oxyzo, OfBusiness’s funding platform that provides cash flow matched funding to help retail clients, has recently expanded to various commission income adjacencies, making it more relevant to its borrowers, did he declare. Oxyzo’s assets under management are expected to grow 100% this year and have doubled revenue to $ 360 million with a profit of $ 21.6 million. It has been profitable since its inception and works with around 45 financial institutions as debt partners.

Bidassist, the company’s SaaS offering for marketing, has now grown organically to reach 2.7 million unique users, making it one of India’s largest and most engaged platforms for SMEs looking for income opportunities in the public sector.

OfBusiness claims that its three main offerings work in tandem and create “a healthy virtuous circle at scale”. The startup plans to deploy the new funds to deepen its advancements in supply chains on the commerce side, while expanding its technology stack for its SaaS solutions and funding engine.

Also on the roadmap: the discovery of the public market. OfBusiness plans to launch its internal IPO process by the middle of next year, the startup said.


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