When it comes to Castor Maritime, the picture is a bit cloudy. The company’s leverage is notable, with liabilities totaling around $797 million against a net invested capital of $596 million. Recent debt levels, including $7.8 million in capital lease obligations and $64.4 million in current liabilities, raise questions about financial flexibility. Despite generating $66.2 million in revenue and an EBITDA of $34.5 million, the company reported a cash outflow of $32.3 million, partly driven by high operating expenses and depreciation. While cash flow from financing activities brought in nearly $60 million, the overall debt load and recent cash burn suggest that Castor Maritime’s leverage could be a concern for investors looking for stability in the marine transportation sector. Castor Maritime is set to release its earnings tomorrow. Currently, its Sales, General, and Administrative expenses as a percentage of revenue remain steady compared to last year. As of July 13, 2025, the company's average inventory is expected to increase to around $1.3 million, while its enterprise value may decrease by approximately $33.8 million. Despite some concerns among older investors about the marine transportation sector, Castor Maritime still presents potential as an investment option. The key question now is whether this could be a stronger year for shareholders. We’ll be watching closely to see if the company can turn things around and deliver better results in the months ahead.
Castor Maritime financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Castor Maritime, including all of Castor Maritime'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 Castor Maritime assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Castor Maritime 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.
Understanding Castor Total Liabilities
Castor Maritime liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Castor Maritime 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 Castor Maritime balance sheet include debt obligations and money owed to different Castor Maritime vendors, workers, and loan providers. Below is the chart of Castor short long-term liabilities accounts currently reported on its balance sheet.
You can use Castor Maritime
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Castor Maritime's Liquidity
Castor Maritime
financial leverage refers to using borrowed capital as a funding source to finance Castor Maritime ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Castor Maritime 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 Castor Maritime'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 Castor Maritime'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 Castor Maritime's total debt and its cash.
A Deeper Perspective
Castor Maritime reported the previous year's revenue of 66.24
M. Net Income was 15.3
M with profit before overhead, payroll, taxes, and interest of 35.27
M.
Asset Breakdown
570.7 M
Non Current Assets Total
266.6 M
Total Current Assets
557.3 M
Net Tangible Assets
| Total Assets | 837.25 Million |
| Net Tangible Assets | 557.26 Million |
| Non Current Assets Total | 570.69 Million |
| Non Currrent Assets Other | 8.11 Million |
| Other Assets | 1.09 |
| Other Current Assets | 78.03 Million |
| Total Current Assets | 266.55 Million |
| Deferred Long Term Asset Charges | 0.0 |
| Intangible Assets | 23.33 Million |
A rising tide lifts all boats, but leverage can also sink them if not managed carefully.
Castor Maritime (NASDAQ: CTRM) maintains a solid current ratio of 3.67X, indicating good short-term liquidity, yet its long-term debt stands at $92.5 million, which could pose risks if cash flows weaken. Despite generating $41.9 million from operating activities and a net income of $15.3 million, the company’s free cash flow is negative at -$30.3 million, highlighting potential liquidity concerns. With a market cap of just $23.09 million and a debt-to-equity ratio of 0.32%, the stock’s leverage profile suggests moderate risk, but investors should watch for fluctuations in cash flow and debt levels that could impact future performance. Overall, while CTRM shows promise, its leverage levels warrant cautious optimism amid ongoing industry volatility..
Castor showing symptom of lower volatility
Recently, Castor Maritime’s average deviation has fallen to 2.36, indicating less fluctuation in its stock price. This decline in volatility suggests the stock is becoming more stable, which might attract investors seeking calmer investments. However, it’s important to consider whether this quieter trading pattern reflects genuine stability or simply lower trading activity. Currently, Castor shows below-average downside deviation, with an Information Ratio of -0.01 and a Jensen Alpha of 0.09. Monitoring volatility trends can help investors better gauge risk, especially during different market conditions.
In downturns, increased volatility often pushes the stock lower, adding pressure on investors and prompting portfolio adjustments. Overall, the reduced volatility hints at a period of relative calm, but staying alert to market shifts remains key.While Castor Maritime's stock is inching upward slowly amid a generally softening market, there are some notable factors to consider. The stock's potential upside of around $5.38 suggests there could be room for growth, especially if the company continues to navigate shipping demand effectively. However, with a valuation real value close to $1.97 and a naive expected forecast of approximately $2.49, the current price may still reflect some optimism that hasn't fully materialized. Investors should keep an eye on the company's ability to sustain its modest gains and whether the market's overall sentiment shifts in favor of maritime stocks. Caution remains warranted, but the stock's resilience in a declining environment makes it worth monitoring for those willing to take a calculated risk..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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