|Bid||33.18 x 900|
|Ask||33.50 x 900|
|Day's Range||33.14 - 34.25|
|52 Week Range||24.10 - 46.62|
|Beta (5Y Monthly)||0.97|
|PE Ratio (TTM)||11.86|
|Earnings Date||Oct 28, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||46.00|
Does the October share price for Boston Scientific Corporation (NYSE:BSX) reflect what it's really worth? Today, we...
Boston Scientific Corporation (NYSE: BSX) has initiated the CHAMPION-AF clinical trial to evaluate the safety and efficacy of the WATCHMAN FLX™ Left Atrial Appendage Closure (LAAC) Device within a broad population of patients with non-valvular atrial fibrillation (NVAF), including those who are at low-to-moderate risk of bleeding from the use of anticoagulation. The device will be compared to treatment with non-vitamin K antagonist oral anticoagulants (NOACs), considered the leading contemporary drugs for stroke risk reduction in this population.
Over the past three months, shares of Boston Scientific (NYSE: BSX) fell by 9.13%. Before having a look at the importance of debt, let us look at how much debt Boston Scientific has.Boston Scientific's Debt Based on Boston Scientific's financial statement as of August 5, 2020, long-term debt is at $9.28 billion and current debt is at $254.00 million, amounting to $9.53 billion in total debt. Adjusted for $1.72 billion in cash-equivalents, the company's net debt is at $7.81 billion.Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.To understand the degree of financial leverage a company has, investors look at the debt ratio. Considering Boston Scientific's $30.82 billion in total assets, the debt-ratio is at 0.31. Generally speaking, a debt-ratio more than one means that a large portion of debt is funded by assets. As the debt-ratio increases, so the does the risk of defaulting on loans, if interest rates were to increase. Different industries have different thresholds of tolerance for debt-ratios. A debt ratio of 35% might be higher for one industry and average for another.Importance Of Debt Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.Looking for stocks with low debt-to-equity ratios? Check out Benzinga Pro, a market research platform which provides investors with near-instantaneous access to dozens of stock metrics - including debt-to-equity ratio. Click here to learn more.See more from Benzinga * Click here for options trades from Benzinga * What Does Boeing's Debt Look Like? * A Look Into Sony's Debt(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.