AIM:KIBO Historical Debt Jan 20th 18
Does KIBO face the risk of succumbing to its debt-load?
With debt at 9.72% of equity, KIBO may be thought of as having low leverage. This range is considered safe as KIBO is not taking on too much debt obligation, which may be constraining for future growth. Investors’ risk associated with debt is virtually non-existent with KIBO, and the company has plenty of headroom and ability to raise debt should it need to in the future.
Next Steps:
KIBO’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. Furthermore, the company may struggle to meet its near term liabilities should an adverse event occur. I admit this is a fairly basic analysis for KIBO’s financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Kibo Mining to get a more holistic view of the stock by looking at:
1. Historical Performance: What has KIBO’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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.