What You Must Know About Alt Resources Limited’s (ASX:ARS) Financial Strength

More

Can ARS service its debt comfortably?

With a debt-to-equity ratio of 3.08%, ARS’s debt level is relatively low. This range is considered safe as ARS is not taking on too much debt obligation, which may be constraining for future growth. Risk around debt is extremely low for ARS, and the company also has the ability and headroom to increase debt if needed going forward.

Next Steps:

ARS’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 proper management of current assets and upcoming liabilities. I admit this is a fairly basic analysis for ARS’s financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Alt Resources to get a more holistic view of the stock by looking at:

• 1. Historical Performance: What has ARS’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.