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Kronos Bio (Kronos Bio) Long-Term Debt & Capital Lease Obligation : $25.38 Mil (As of Dec. 2023)


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What is Kronos Bio Long-Term Debt & Capital Lease Obligation?

Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Kronos Bio's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $25.38 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Kronos Bio's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $25.38 Mil. Kronos Bio's Total Assets for the quarter that ended in Dec. 2023 was $213.28 Mil. Kronos Bio's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.12.

Kronos Bio's LT-Debt-to-Total-Asset increased from Dec. 2022 (0.10) to Dec. 2023 (0.12). It may suggest that Kronos Bio is progressively becoming more dependent on debt to grow their business.


Kronos Bio Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Kronos Bio's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kronos Bio Long-Term Debt & Capital Lease Obligation Chart

Kronos Bio Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Long-Term Debt & Capital Lease Obligation
Get a 7-Day Free Trial 0.21 31.12 31.65 28.74 25.38

Kronos Bio Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Long-Term Debt & Capital Lease Obligation Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.74 27.95 27.13 26.28 25.38

Kronos Bio Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.


Kronos Bio  (NAS:KRON) Long-Term Debt & Capital Lease Obligation Explanation

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Kronos Bio's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 is calculated as:

LT-Debt-to-Total-Asset (Q: Dec. 2023 )=Long-Term Debt & Capital Lease Obligation (Q: Dec. 2023 )/Total Assets (Q: Dec. 2023 )
=25.379/213.279
=0.12

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the company’s earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet


Kronos Bio Long-Term Debt & Capital Lease Obligation Related Terms

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Kronos Bio (Kronos Bio) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Kronos Bio Inc (NAS:KRON) » Definitions » Long-Term Debt & Capital Lease Obligation
Traded in Other Exchanges
N/A
Address
1300 So. El Camino Real, Suite 300, San Mateo, CA, USA, 94402
Kronos Bio Inc is a clinical-stage biopharmaceutical company dedicated to the discovery and development of novel cancer therapeutics designed to transform patient outcomes through a precision medicine strategy by targeting dysregulated transcription. The company operates in one business segment, the development of biopharmaceutical products.
Executives
Jorge Dimartino officer: Chief Medical Officer & VP C/O KRONOS BIO, INC., 1300 S, SAN MATEO CA 94402
Christopher Dinsmore officer: Chief Scientific Officer C/O KRONOS BIO, INC., 1300 EL CAMINO REAL, STE. 300, SAN MATEO CA 94402
Barbara Kosacz officer: COO & General Counsel 3175 HANOVER STREET, PALO ALTO CA 94304
Norbert W Bischofberger director, 10 percent owner, officer: President & CEO 333 LAKESIDE DR, C/O GILEAD SCIENCES, INC., FOSTER CITY CA 94404
Sandra A. Gardiner officer: Interim CFO CUTERA, INC., 3240 BAYSHORE BOULEVARD, BRISBANE CA 94005
Yasir B. Al-wakeel officer: Chief Financial Officer MERRIMACK PHARMACEUTICALS, INC., ONE KENDALL SQUARE, SUITE B7201, CAMBRIDGE MA 02139
Roger D Dansey director 21823 30TH DRIVE SE, BOTHELL WA 98021
Katherine V Stultz director C/O GRAPHITE BIO, INC., 279 EAST GRAND AVENUE, SUITE 430, SOUTH SAN FRANCISCO CA 94080
Backer Marianne De director 177 E COLORADO BLVD, SUITE 700, PASADENA CA 91105
Roshawn A. Blunt director 11682 EL CAMINO REAL STE 300, SAN DIEGO CA 92130
Jakob Loven director C/O ARVINAS, INC., 5 SCIENCE PARK, 395 WINCHESTER AVENUE, NEW HAVEN CT 06511
Taiyin Yang director 2631 HANOVER STREET, PALO ALTO CA 94304
Otello Stampacchia director, 10 percent owner 888 BOYLSTON ST., SUITE 1111, BOSTON MA 02199
John C Martin director 333 LAKESIDE DRIVE, FOSTER CITY X1 94404
Elena Ridloff director C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130