What does Herencia Resources plc’s (LON:HER) Balance Sheet Tell Us About Its Future?

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

HER’s level of debt is appropriate relative to its total equity, at 24.51%. HER is not taking on too much debt commitment, which may be constraining for future growth. Investors’ risk associated with debt is very low with HER, and the company has plenty of headroom and ability to raise debt should it need to in the future.

Next Steps:

HER’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. In addition to this, its lack of liquidity raises questions over current asset management practices for the small-cap. I admit this is a fairly basic analysis for HER’s financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Herencia Resources to get a better picture of the stock by looking at:

• 1. Historical Performance: What has HER’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.