Goldstone Resources Limited (LON:GRL): Time For A Financial Health Check

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Does GRL face the risk of succumbing to its debt-load?

With debt at 8.18% of equity, GRL may be thought of as having low leverage. This range is considered safe as GRL is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. Investors’ risk associated with debt is virtually non-existent with GRL, and the company has plenty of headroom and ability to raise debt should it need to in the future.

Next Steps:

GRL’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. However, the company will be able to pay all of its upcoming liabilities from its current short-term assets. Keep in mind I haven’t considered other factors such as how GRL has been performing in the past. I recommend you continue to research Goldstone Resources to get a better picture of the stock by looking at:

• 1. Historical Performance: What has GRL’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.