Is Anglesey Mining plc’s (LON:AYM) Balance Sheet Strong Enough To Weather A Storm?

Is AYM’s debt level acceptable?

AYM’s level of debt is appropriate relative to its total equity, at 28.66%. AYM is not taking on too much debt commitment, which can be restrictive and risky for equity-holders. Risk around debt is very low for AYM, and the company also has the ability and headroom to increase debt if needed going forward.

Next Steps:

Although AYM’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. However, the company exhibits proper management of current assets and upcoming liabilities. Keep in mind I haven’t considered other factors such as how AYM has been performing in the past. You should continue to research Anglesey 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 AYM’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 AYM’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.