ASX:TAS Historical Debt Dec 22nd 17
Does TAS face the risk of succumbing to its debt-load?
With debt at 3.70% of equity, TAS may be thought of as having low leverage. This range is considered safe as TAS is not taking on too much debt obligation, which may be constraining for future growth. Risk around debt is extremely low for TAS, and the company also has the ability and headroom to increase debt if needed going forward.
Next Steps:
Are you a shareholder? TAS’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. 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 change. You should always be researching market expectations for TAS’s future growth on our free analysis platform.
Are you a potential investor? TAS’s low-debt position gives it headroom for future growth funding in the future. Furthermore, its high liquidity means the company should continue to operate smoothly in the case of adverse events. To gain more confidence in the stock, you need to also examine TAS’s track record. As a following step, you should take a look at TAS’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.