ASX:ELT Historical Debt Dec 20th 17
Can ELT service its debt comfortably?
With debt at 11.38% of equity, ELT may be thought of as appropriately levered. This range is considered safe as ELT is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. Investors’ risk associated with debt is very low with ELT, and the company has plenty of headroom and ability to raise debt should it need to in the future.
Next Steps:
Are you a shareholder? ELT’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. However, the company exhibits an ability to meet its near term obligations should an adverse event occur. Given that its financial position may change. You should always be keeping on top of market expectations for ELT’s future growth on our free analysis platform.
Are you a potential investor? ELT’s low-debt position gives it headroom for future growth funding in the future. Furthermore, its high liquidity ensures the company will continue to operate smoothly should unfavourable circumstances arise. To gain more confidence in the stock, you need to further examine the company’s track record. You should continue your analysis by taking a look at ELT’s past performance analysis on our free platform to conclude on ELT’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.