ASX:BSR Historical Debt Dec 11th 17
Does BSR face the risk of succumbing to its debt-load?
With debt at 1.42% of equity, BSR may be thought of as having low leverage. This range is considered safe as BSR is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. BSR’s risk around capital structure is almost non-existent, and the company has the headroom and ability to raise debt should it need to in the future.
Next Steps:
Are you a shareholder? BSR’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 its financial position may change. I suggest researching market expectations for BSR’s future growth on our free analysis platform.
Are you a potential investor? BSR seems to have maintained 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, in addition to the low liquidity, is concerning. Though, keep in mind that this is a point-in-time analysis, and today’s performance may not be representative of BSR’s track record. As a following step, you should take a look at BSR’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.