What You Must Know About Central Iron Ore Limited’s (CVE:CIO) Financial Strength

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Can CIO service its debt comfortably?

With a debt-to-equity ratio of 21.72%, CIO’s debt level may be seen as prudent. This range is considered safe as CIO is not taking on too much debt obligation, which can be restrictive and risky for equity-holders.

Next Steps:

Although CIO’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. In addition to this, its lack of liquidity raises questions over current asset management practices for the small-cap. Keep in mind I haven’t considered other factors such as how CIO has been performing in the past. You should continue to research Central Iron Ore to get a better picture of the stock by looking at:

• 1. Historical Performance: What has CIO’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.