ASX:MGT Historical Debt Dec 20th 17
Can MGT service its debt comfortably?
MGT’s level of debt is appropriate relative to its total equity, at 31.38%. This range is considered safe as MGT is not taking on too much debt obligation, which may be constraining for future growth. MGT’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? Although MGT’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings. This may indicate room for improvement in terms of its operating efficiency. Though, the company will be able to pay all of its upcoming liabilities from its current short-term assets. Given that its financial position may be different. You should always be researching market expectations for MGT’s future growth on our free analysis platform.
Are you a potential investor? Magnetite Mines currently has financial flexibility to ramp up growth in the future. Moreover, 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 also examine the company’s track record. I encourage you to continue your research by taking a look at MGT’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.