TSXV:GV Historical Debt Dec 10th 17
Is GV’s level of debt at an acceptable level?
GV’s level of debt is appropriate relative to its total equity, at 23.72%. This range is considered safe as GV is not taking on too much debt obligation, which may be constraining for future growth. GV’s risk around capital structure is low, and the company has the headroom and ability to raise debt should it need to in the future.
Next Steps:
Are you a shareholder? GV’s low debt is also met with low coverage. This indicates room for improvement as its cash flow covers less than a quarter of its borrowings, which means its operating efficiency could be better. Furthermore, the company may struggle to meet its near term liabilities should an adverse event occur. Given that GV’s financial situation may change. I recommend keeping abreast of market expectations for GV’s future growth on our free analysis platform.
Are you a potential investor? GV seems to have a sensible level of debt, which means there’s still some headroom to grow debt funding. But its current cash flow coverage of existing debt, along with its low liquidity, is concerning. However, keep in mind that this is a point-in-time analysis, and today’s performance may not be representative of GV’s track record. As a following step, you should take a look at GV’s past performance analysis on our free platform in order to determine for yourself whether its debt position is justified.
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.