ASX:POS Historical Debt Dec 12th 17
Is POS’s level of debt at an acceptable level?
With total debt exceeding equities, POS 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? POS’s high debt levels is not met with high cash flow coverage. This leaves room for improvement in terms of debt management and 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. Going forward, POS’s financial situation may change. I recommend researching market expectations for POS’s future growth on our free analysis platform.
Are you a potential investor? POS’s high debt levels on top of low cash coverage of debt as well as low liquidity coverage of near-term expenses may scare some investors away intially. However, keep in mind that this is a point-in-time analysis, and today’s performance may not be representative of POS’s track record. I encourage you to continue your research by taking a look at POS’s past performance analysis on our free platform to conclude on POS’s financial health.
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.