Are KIN Mining NL’s (ASX:KIN) Interest Costs Too High?

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Is KIN’s debt level acceptable?

With a debt-to-equity ratio of 17.13%, KIN’s debt level may be seen as prudent. KIN is not taking on too much debt commitment, which can be restrictive and risky for equity-holders. Risk around debt is very low for KIN, and the company also has the ability and headroom to increase debt if needed going forward.

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KIN’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. However, the company exhibits an ability to meet its near term obligations should an adverse event occur. I admit this is a fairly basic analysis for KIN’s financial health. Other important fundamentals need to be considered alongside. You should continue to research KIN Mining to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.

• 1. Historical Performance: What has KIN’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 KIN’s historicals for more clarity.
• 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a 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.