ASX:LNY Historical Debt Dec 21st 17
Can LNY service its debt comfortably?
With debt at 4.39% of equity, LNY may be thought of as having low leverage. This range is considered safe as LNY is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. LNY’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? Although LNY’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. Furthermore, the company may struggle to meet its near term liabilities should an adverse event occur. Given that its financial position may change. You should always be keeping abreast of market expectations for LNY’s future growth on our free analysis platform.
Are you a potential investor? LNY seems to have 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, along with its low liquidity, is concerning. However, keep in mind that this is a point-in-time analysis, and today’s performance may not be representative of LNY’s track record. You should continue your analysis by taking a look at LNY’s past performance analysis on our free platform to conclude on LNY’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.