Market Overview

How Does Omeros's Debt Look?


Over the past three months, shares of Omeros Inc. (NASDAQ: OMER) moved lower by 13.52%. Before having a look at the importance of debt, let's look at how much debt Omeros has.

Omeros's Debt

Based on Omeros’s balance sheet as of August 10, 2020, long-term debt is at $164.46 million and current debt is at $1.20 million, amounting to $165.65 million in total debt. Adjusted for $1.96 million in cash-equivalents, the company's net debt is at $163.69 million.

Investors look at the debt-ratio to understand how much financial leverage a company has. Omeros has $70.69 million in total assets, therefore making the debt-ratio 2.34. As a rule of thumb, a debt-ratio more than 1 indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 35% might be higher for one industry, whereas average for another.

Importance of Debt

Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.

Interest-payment obligations can impact the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital.


Related Articles (OMER)

View Comments and Join the Discussion!

Posted-In: Debt InsightsNews Intraday Update Markets

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at