ASX:TER Historical Debt Dec 11th 17
Is TER’s level of debt at an acceptable level?
With total debt exceeding equities, TER is considered a highly levered company. This is not uncommon for a small-cap company given that debt tends to be lower-cost and at times, more accessible.
Next Steps:
Are you a shareholder? With a high level of debt on its balance sheet, TER could still be in a financially strong position if its cash flow also stacked up. However, this isn’t the case, and there’s room for TER to increase its operational efficiency. In addition to this, the company may not be able to pay all of its upcoming liabilities from its current short-term assets. In the future, its financial position may be different. You should always be keeping abreast of market expectations for TER’s future growth on our free analysis platform.
Are you a potential investor? TER’s large debt ratio on top of poor cash coverage as well as low liquidity coverage of near-term expenses may scare some investors away intially. Though, keep in mind that this is a point-in-time analysis, and today’s performance may not be representative of TER’s track record. You should continue your analysis by taking a look at TER’s past performance analysis on our free platform to figure out TER’s financial health position.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.