Volitionrx has liabilities totaling $5.82 million and a debt-to-equity ratio of 1.57, which sits around the industry average. Our analysis aims to add context to the current expert consensus on the company. Using our advanced, multi-layered algorithm, we evaluate Volitionrx’s growth prospects by considering both technical signals and fundamental data. This approach helps us craft a tailored recommendation that reflects the company's financial position and market potential, providing a clearer picture for investors looking to make informed decisions.
Important Points
Despite some positive cash flow of **$20.7M** and manageable long-term debt of **$4M**, Volitionrx's stock at a typical price of **$0.77** faces headwinds with a negative EPS estimate of **-0.165** for this year, making leveraged positions risky given the company's ongoing losses and liabilities totaling **$27.7M**.
Considering the current low price and modest trading volume of **86.1K**, traders should be cautious about using leverage, as the stock's volatility and negative momentum suggest potential for sharp declines despite recent news.

Volitionrx financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Volitionrx, including all of Volitionrx's 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 Volitionrx assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Volitionrx debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Watch out for price decline
Please consider monitoring Volitionrx on a daily basis if you are holding a position in it. Volitionrx is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Volitionrx stock to be traded above the $1 level to remain listed. If Volitionrx stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
Understanding Volitionrx Total Debt
Volitionrx liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Volitionrx has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Volitionrx balance sheet include debt obligations and money owed to different Volitionrx vendors, workers, and loan providers. Below is the chart of Volitionrx main long-term debt accounts currently reported on its balance sheet.
You can use Volitionrx
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Volitionrx's Liquidity
Volitionrx
financial leverage refers to using borrowed capital as a funding source to finance Volitionrx ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Volitionrx financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Volitionrx's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Volitionrx's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Volitionrx's total debt and its cash.
A Deeper Perspective
This firm reported the previous year's revenue of 1.23
M. Net Loss for the year was (27.26
M) with profit before overhead, payroll, taxes, and interest of 1.31
M.
Asset Breakdown
3.9 M
Non Current Assets Total
3.9 M
Total Current Assets
| Total Assets | 10.74 Million |
| Total Current Assets | 3.85 Million |
| Non Current Assets Total | 3.91 Million |
| Non Currrent Assets Other | (0.94) |
| Other Current Assets | 559,404 |
| Intangible Assets | 484,209 |
| Net Tangible Assets | (3.54 Million) |
| Other Assets | 0.8 |
A penny saved is a penny earned, but for Volitionrx (VNRX), the challenge lies in turning its assets into sustainable profits.
Despite a solid cash flow of 3.3 million dollars at the end of the period, the company faces significant hurdles with an operating income of -27 million dollars and a high probability of bankruptcy at 95.94%. Leverage remains modest, with a debt-to-equity ratio of just 1.57%, yet the stock's beta of 1.06 indicates it moves slightly more than the market, adding to its risk profile. With total assets of 9.4 million dollars and ongoing research expenses of 14.4 million dollars, the company’s financials suggest it’s still in a growth phase, but leverage and cash flow challenges could weigh heavily on future performance..
Some Volitionrx technical indicators suggest turnaround
Recent technical analysis indicates that Volitionrx has experienced a sharp decline of over 47.78%, reflecting notable recent volatility. Despite this, some indicators suggest the possibility of a turnaround, hinting that the stock may be stabilizing after a tough period. While the steep drop warrants caution, these signs could point to a shift in momentum worth monitoring for potential signs of recovery.
Volitionrx tends to be quite volatile over short time frames and could be classified as a penny stock. While it might offer trading opportunities, many penny stocks are highly speculative and prone to artificial price spikes driven by hype or rumors. Investors should thoroughly understand both the potential upside and the risks involved.
Be wary of promotional tactics, sudden news, or unverified claims, and always review the backgrounds of company executives before investing. Timing is key, but remember that most artificially inflated stocks tend to revert quickly, emphasizing the importance of solid fundamentals for sustainable growth.Investing in Volitionrx presents a mixed picture. While the overall analyst consensus leans toward a strong buy, the current valuation and earnings estimates suggest caution. The stock's estimated value of around
0.77 compared to a potential upside of nearly
8 times indicates significant volatility and uncertainty. With earnings expected to remain negative through next year, the risk remains elevated, and the downside could be substantial if expectations aren’t met. For those considering a position, it’s essential to weigh the potential for growth against the inherent risks, especially given the modest valuation and the speculative nature of the current outlook..
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Volitionrx. Please refer to our
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