Debt Company – CTXETG http://ctxetg.com/ Thu, 07 Oct 2021 13:06:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ctxetg.com/wp-content/uploads/2021/06/icon-150x150.png Debt Company – CTXETG http://ctxetg.com/ 32 32 We believe AGCO (NYSE: AGCO) can stay on top of its debt https://ctxetg.com/we-believe-agco-nyse-agco-can-stay-on-top-of-its-debt/ https://ctxetg.com/we-believe-agco-nyse-agco-can-stay-on-top-of-its-debt/#respond Thu, 07 Oct 2021 12:38:11 +0000 https://ctxetg.com/we-believe-agco-nyse-agco-can-stay-on-top-of-its-debt/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. Like many other companies AGCO Company (NYSE: AGCO) uses debt. But the real question is whether this debt makes the business risky.

Why Does Debt Bring Risk?

Debts and other liabilities become risky for a business when it cannot easily meet these obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still costly) situation is where a company has to dilute its shareholders at a cheap share price just to get its debt under control. By replacing dilution, however, debt can be a very good tool for companies that need capital to invest in growth at high rates of return. The first step in examining a company’s debt levels is to consider its cash flow and debt together.

See our latest review for AGCO

What is AGCO’s debt?

As you can see below, AGCO had $ 1.58 billion in debt in June 2021, up from $ 1.76 billion the year before. On the other hand, it has $ 500.2 million in cash, resulting in net debt of around $ 1.08 billion.

NYSE: AGCO Debt to Equity History October 7, 2021

Is AGCO’s Balance Sheet Healthy?

According to the latest published balance sheet, AGCO had liabilities of US $ 3.62 billion maturing 12 months and liabilities of US $ 2.08 billion maturing beyond 12 months. In compensation for these obligations, it had cash of US $ 500.2 million as well as receivables valued at US $ 1.10 billion due within 12 months. Its liabilities therefore total $ 4.10 billion more than the combination of its cash and short-term receivables.

While that might sound like a lot, it’s not that big of a deal as AGCO has a market capitalization of US $ 9.47 billion, so it could likely strengthen its balance sheet by raising capital if needed. However, it is always worth taking a close look at your ability to repay your debt.

We use two main ratios to inform us about the levels of debt compared to earnings. The first is net debt divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), while the second is the number of times its profit before interest and taxes (EBIT) covers its interest expense (or its coverage of interest, for short). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

AGCO has a low net debt to EBITDA ratio of just 0.91. And its EBIT covers its interest costs 81.6 times more. We could therefore say that he is no more threatened by his debt than an elephant is by a mouse. On top of that, we are happy to report that AGCO has increased its EBIT by 100%, reducing the specter of future debt repayments. When analyzing debt levels, the balance sheet is the obvious starting point. But it is future profits, more than anything, that will determine AGCO’s ability to maintain a healthy balance sheet going forward. So if you are focused on the future you can check this out free report showing analysts’ earnings forecasts.

Finally, a business can only pay off its debts with hard cash, not with book profits. It is therefore worth checking to what extent this EBIT is supported by free cash flow. Over the past three years, AGCO has recorded free cash flow of 77% of its EBIT, which is close to normal given that free cash flow excludes interest and taxes. This hard cash allows him to reduce his debt whenever he wants.

Our point of view

AGCO’s interest coverage suggests she can manage her debt as easily as Cristiano Ronaldo could score a goal against an Under-14 keeper. But, on a darker note, we’re a little concerned with its total liability level. Zooming out, AGCO appears to be using debt quite reasonably; and that gets the nod from us. After all, reasonable leverage can increase returns on equity. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks lie on the balance sheet – far from it. For example, we have identified 2 warning signs for AGCO that you need to be aware of.

At the end of the day, sometimes it’s easier to focus on businesses that don’t even need to go into debt. Readers can access a list of growth stocks with zero net debt 100% free, at present.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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Is China Suntien Green Energy (HKG: 956) Using Too Much Debt? https://ctxetg.com/is-china-suntien-green-energy-hkg-956-using-too-much-debt/ https://ctxetg.com/is-china-suntien-green-energy-hkg-956-using-too-much-debt/#respond Thu, 07 Oct 2021 00:28:08 +0000 https://ctxetg.com/is-china-suntien-green-energy-hkg-956-using-too-much-debt/ Warren Buffett said: “Volatility is far from synonymous with risk”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. We can see that China Suntien Green Energy Corporation Limited (HKG: 956) uses debt in its business. But the […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. We can see that China Suntien Green Energy Corporation Limited (HKG: 956) uses debt in its business. But the real question is whether this debt makes the business risky.

What risk does debt entail?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, constantly diluting shareholders, just to strengthen its balance sheet. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. The first step in examining a company’s debt levels is to consider its cash flow and debt together.

See our latest analysis for China Suntien Green Energy

What is the debt of China Suntien Green Energy?

You can click on the graph below for historical figures, but it shows that as of June 2021, China Suntien Green Energy had a debt of CN 33.7 billion, an increase from CN 27.2 billion. , over one year. However, given that it has a cash reserve of CN 3.06 billion, its net debt is less, at around CN 30.6 billion.

SEHK: 956 History of debt to equity October 7, 2021

How strong is China Suntien Green Energy’s balance sheet?

The most recent balance sheet shows that China Suntien Green Energy had CN 15.5 billion in liabilities maturing within one year and CN 28.9 billion in liabilities beyond. On the other hand, he had CN 3.06 billion in cash and CN 6.89 billion in receivables due within one year. It therefore has liabilities totaling CN 34.5 billion more than its cash and short-term receivables combined.

This deficit is substantial compared to its market capitalization of CN 53.9 billion, so he suggests shareholders keep an eye on China Suntien Green Energy’s use of debt. This suggests that shareholders would be heavily diluted if the company needed to consolidate its balance sheet quickly.

We measure a company’s debt load relative to its earning capacity by looking at its net debt divided by its earnings before interest, taxes, depreciation, and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT) covers its interest costs (interest coverage). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

As it turns out, China Suntien Green Energy has a rather worrying net debt to EBITDA ratio of 5.5 but very strong interest coverage of 1k. So either he has access to very cheap long-term debt or his interest charges will go up! It is important to note that China Suntien Green Energy has increased its EBIT by 38% over the past twelve months, and this growth will make it easier to process its debt. The balance sheet is clearly the area you need to focus on when analyzing debt. But it is future earnings, more than anything, that will determine China Suntien Green Energy’s ability to maintain a healthy balance sheet going forward. So if you are focused on the future you can check this out free report showing analysts’ earnings forecasts.

Finally, a business can only pay off its debts with hard cash, not with book profits. We must therefore clearly check whether this EBIT generates a corresponding free cash flow. In the past three years, China Suntien Green Energy has recorded substantial negative free cash flow overall. While this may be the result of spending on growth, it makes debt much riskier.

Our point of view

We feel some apprehension about the difficulty of converting EBIT to free cash flow from China Suntien Green Energy, but we also have some bright spots to focus on. Its interest coverage and EBIT growth rate are encouraging signs. We think China Suntien Green Energy’s debt makes it a bit risky, after looking at the aforementioned data points together. Not all risks are bad, as they can increase stock price returns if they are profitable, but this risk of leverage is worth keeping in mind. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist off the balance sheet. For example, we discovered 2 warning signs for China Suntien Green Energy (1 cannot be ignored!) Which you should be aware of before investing here.

If you are interested in investing in companies that can generate profits without the burden of debt, check out this page free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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We believe Coca-Cola (NYSE: KO) can stay on top of its debt https://ctxetg.com/we-believe-coca-cola-nyse-ko-can-stay-on-top-of-its-debt/ https://ctxetg.com/we-believe-coca-cola-nyse-ko-can-stay-on-top-of-its-debt/#respond Wed, 06 Oct 2021 11:22:07 +0000 https://ctxetg.com/we-believe-coca-cola-nyse-ko-can-stay-on-top-of-its-debt/ David Iben put it well when he said: “Volatility is not a risk we care about. What matters to us is to avoid the permanent loss of capital. ‘ When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. […]]]>

David Iben put it well when he said: “Volatility is not a risk we care about. What matters to us is to avoid the permanent loss of capital. ‘ When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. We note that The Coca-Cola Company (NYSE: KO) has debt on its balance sheet. But does this debt concern shareholders?

What risk does debt entail?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are ruthlessly liquidated by their bankers. However, a more common (but still costly) situation is where a company has to dilute its shareholders at a cheap share price just to get its debt under control. By replacing dilution, however, debt can be a very good tool for companies that need capital to invest in growth at high rates of return. When we look at debt levels, we first consider both liquidity and debt levels.

Discover our latest analysis for Coca-Cola

What is Coca-Cola’s debt?

You can click on the graph below for historical figures, but it shows that Coca-Cola had $ 42.1 billion in debt in July 2021, down from $ 52.4 billion a year earlier. However, it has $ 13.0 billion in cash offsetting that, leading to net debt of around $ 29.0 billion.

NYSE: KO History of Debt to Equity October 6, 2021

A look at Coca-Cola’s responsibilities

Zooming in on the latest balance sheet data, we can see that Coca-Cola had $ 15.3 billion in liabilities due within 12 months and $ 50.6 billion in liabilities due beyond. In return, he had $ 13.0 billion in cash and $ 4.04 billion in receivables due within 12 months. Its liabilities therefore total $ 48.9 billion more than the combination of its cash and short-term receivables.

This deficit is not that big as Coca-Cola is worth US $ 229.1 billion and could therefore probably raise enough capital to consolidate its balance sheet, should the need arise. However, it is always worth taking a close look at your ability to repay your debt.

In order to measure a company’s debt relative to its profits, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its profit before interest and taxes (EBIT) divided by its interest. debtors (its interest coverage). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

Coca-Cola has net debt of 2.2 times EBITDA, which isn’t too much, but its interest coverage looks a bit weak, with EBIT at just 6.3 times interest expense. While we’re not worried about these numbers, it’s worth noting that the company’s cost of debt does have a real impact. One way that Coca-Cola could beat its debt would be to stop borrowing more but continue to increase its EBIT by around 18%, as it did last year. There is no doubt that we learn the most about debt from the balance sheet. But it is future profits, more than anything, that will determine Coca-Cola’s ability to maintain a healthy balance sheet in the future. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

But our last consideration is also important, because a business cannot pay its debts with paper profits; he needs hard cash. We therefore always check how much of this EBIT is converted into free cash flow. Over the past three years, Coca-Cola has recorded free cash flow totaling 83% of its EBIT, which is higher than what we usually expected. This puts him in a very strong position to pay off the debt.

Our point of view

The good news is that Coca-Cola’s demonstrated ability to convert EBIT into free cash flow delights us like a fluffy puppy does a toddler. And the good news doesn’t end there, because its EBIT growth rate also supports this impression! Considering all of this data, it seems to us that Coca-Cola is taking a fairly reasonable approach to debt. While this carries some risk, it can also improve returns for shareholders. The balance sheet is clearly the area you need to focus on when analyzing debt. However, not all investment risks lie on the balance sheet – far from it. Know that Coca-Cola shows 2 warning signs in our investment analysis , you must know…

Of course, if you are the type of investor who prefers to buy stocks without going into debt, feel free to check out our exclusive list of cash net growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

If you decide to trade Coca-Cola, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account.Promoted


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Q Technology (Group) (HKG: 1478) could easily take on more debt https://ctxetg.com/q-technology-group-hkg-1478-could-easily-take-on-more-debt/ https://ctxetg.com/q-technology-group-hkg-1478-could-easily-take-on-more-debt/#respond Tue, 05 Oct 2021 22:36:45 +0000 https://ctxetg.com/q-technology-group-hkg-1478-could-easily-take-on-more-debt/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. It is only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. It is only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a business collapses. Above all, Q Technology (Group) Company Limited (HKG: 1478) carries a debt. But does this debt worry shareholders?

What risk does debt entail?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, constantly diluting shareholders, just to strengthen its balance sheet. Of course, many companies use debt to finance their growth without negative consequences. The first step in examining a company’s debt levels is to consider its cash flow and debt together.

See our latest review for Q Technology (Group)

What is the debt of Q Technology (Group)?

You can click on the graph below for the historical figures, but it shows that Q Technology (Group) had a debt of CN 1.64 billion in June 2021, up from CN 2.13 billion a year earlier. However, he also had CN 1.30 billion in cash, so his net debt was CN 338.2 million.

SEHK: 1478 History of debt to equity October 5, 2021

How strong is Q Technology (Group) ‘s balance sheet?

We can see from the most recent balance sheet that Q Technology (Group) had liabilities of CN 7.63 billion due within one year, and liabilities of CN 278.5 million due within one year. -of the. In return, he had CN 1.30 billion in cash and CN 4.24 billion in receivables due within 12 months. Its liabilities are therefore CN 2.36 billion more than the combination of its cash and short-term receivables.

Q Technology (Group) has a market cap of CN ¥ 10.5b, so it could most likely raise cash to improve its balance sheet, should the need arise. But it is clear that it is absolutely necessary to take a close look at whether it can manage its debt without dilution.

We use two main ratios to inform us about the levels of debt compared to earnings. The first is net debt divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), while the second is the number of times its profit before interest and taxes (EBIT) covers its interest expense (or its coverage of interest, for short). Thus, we consider debt versus earnings with and without amortization charges.

The net debt of Q Technology (Group) is only 0.19 times its EBITDA. And its EBIT covers its interest costs a whopping 84.9 times. We could therefore say that he is no more threatened by his debt than an elephant is by a mouse. On top of that, we are happy to report that Q Technology (Group) has increased its EBIT by 60%, reducing the specter of future debt repayments. There is no doubt that we learn the most about debt from the balance sheet. But ultimately, the company’s future profitability will decide whether Q Technology (Group) can strengthen its balance sheet over time. So if you are focused on the future you can check this out free report showing analysts’ earnings forecasts.

But our last consideration is also important, because a business cannot pay its debts with paper profits; he needs hard cash. We therefore always check how much of this EBIT is converted into free cash flow. Fortunately for all shareholders, Q Technology (Group) has actually generated more free cash flow than EBIT over the past three years. This kind of solid money conversion makes us as excited as the crowd when the beat drops at a Daft Punk concert.

Our point of view

The good news is that Q Technology (Group) ‘s demonstrated ability to cover interest costs with EBIT delights us like a fluffy puppy does a toddler. And this is only the beginning of good news as its conversion from EBIT to free cash flow is also very encouraging. Considering this range of factors, it seems to us that Q Technology (Group) is quite cautious with its debt, and the risks appear to be well under control. We are therefore not worried about the use of a small leverage on the balance sheet. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist off the balance sheet. For example – Q Technology (Group) a 1 warning sign we think you should be aware.

If you are interested in investing in companies that can generate profits without the burden of debt, check out this page free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

When trading Q Technology (Group) or any other investment, use the platform considered by many to be the gateway for professionals to the global market, Interactive Brokers. You get the cheapest * trading on stocks, options, futures, forex, bonds and funds from around the world from a single integrated account.Promoted


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These 4 metrics indicate that Rubis (EPA: RUI) is using debt reasonably well https://ctxetg.com/these-4-metrics-indicate-that-rubis-epa-rui-is-using-debt-reasonably-well/ https://ctxetg.com/these-4-metrics-indicate-that-rubis-epa-rui-is-using-debt-reasonably-well/#respond Tue, 05 Oct 2021 05:57:18 +0000 https://ctxetg.com/these-4-metrics-indicate-that-rubis-epa-rui-is-using-debt-reasonably-well/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess the level of risk of a business. We can see that Ruby (EPA: RUI) uses debt in its business. But should shareholders be concerned about its use of debt?

When is debt dangerous?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. If things really go wrong, lenders can take over the business. However, a more common (but still costly) situation is where a company has to dilute its shareholders at a cheap share price just to get its debt under control. Of course, many companies use debt to finance their growth without negative consequences. When we think of a business’s use of debt, we first look at cash flow and debt together.

See our latest analysis for Rubis

How many debts does Rubis have?

The graph below, which you can click for more details, shows that Rubis had € 1.33 billion in debt in June 2021; about the same as the year before. On the other hand, it has 933.7 million euros in cash, leading to a net debt of around 398.2 million euros.

ENXTPA: RUI Debt to Equity History October 5, 2021

A look at Rubis’ liabilities

We can see from the most recent balance sheet that Rubis had liabilities of 1.07 billion euros due within one year, and liabilities of 1.40 billion euros due beyond. In compensation for these obligations, he had cash of € 933.7 million as well as receivables valued at € 544.6 million within 12 months. Its liabilities therefore amount to € 994.9 million more than the combination of its cash and short-term receivables.

Rubis has a market capitalization of 3.15 billion euros, so it could most likely raise cash to improve its balance sheet, should the need arise. But we absolutely want to keep our eyes open for indications that its debt is too risky.

In order to measure a company’s debt relative to its profits, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its profit before interest and taxes (EBIT) divided by its interest. debtors (its interest coverage). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

Rubis has a low net debt to EBITDA ratio of just 0.87. And its EBIT covers its interest costs 15.9 times more. We could therefore say that he is no more threatened by his debt than an elephant is by a mouse. Another good sign, Rubis was able to increase its EBIT by 21% in twelve months, thus facilitating the repayment of its debt. The balance sheet is clearly the area you need to focus on when analyzing debt. But in the end, it is the company’s future profitability that will decide whether Rubis can strengthen its balance sheet over time. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, while the IRS may love accounting profits, lenders only accept hard cash. We must therefore clearly check whether this EBIT generates a corresponding free cash flow. Over the past three years, Rubis has recorded free cash flow of 54% of its EBIT, which is close to normal, given that free cash flow is understood to be excluding interest and taxes. This hard cash allows him to reduce his debt whenever he wants.

Our point of view

The good news is that Rubis’ demonstrated ability to cover his interest costs with his EBIT delights us like a fluffy puppy does a toddler. And that’s just the start of good news as its EBIT growth rate is also very encouraging. It should also be noted that companies in the Gas Utilities industry such as Rubis currently use debt without any problem. When we consider the range of factors above, it seems that Ruby is pretty reasonable with its use of debt. While this carries some risk, it can also improve returns for shareholders. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks lie on the balance sheet – far from it. For example, we have identified 2 warning signs for Rubis that you need to be aware of.

At the end of the day, it’s often best to focus on businesses with no net debt. You can access our special list of these companies (all with a history of profit growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

When trading Ruby or any other investment, use the platform considered by many to be the gateway for professionals to the global market, Interactive Brokers. You get the cheapest transactions * on stocks, options, futures, forex, bonds and funds from around the world from one integrated account.Promoted


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AppTech Corp. converts or corrects default on the vast majority of unpaid debts https://ctxetg.com/apptech-corp-converts-or-corrects-default-on-the-vast-majority-of-unpaid-debts/ https://ctxetg.com/apptech-corp-converts-or-corrects-default-on-the-vast-majority-of-unpaid-debts/#respond Mon, 04 Oct 2021 10:00:00 +0000 https://ctxetg.com/apptech-corp-converts-or-corrects-default-on-the-vast-majority-of-unpaid-debts/ CARLSBAD, Calif., October 04, 2021 (GLOBE NEWSWIRE) – AppTech Corp. (“AppTech”) (OTC: APCX), a financial technology company, today announced that the company has converted or defaulted on the vast majority of its debt. To help it in its efforts to list on a national stock exchange to further improve its financial stability, AppTech negotiated with […]]]>

CARLSBAD, Calif., October 04, 2021 (GLOBE NEWSWIRE) – AppTech Corp. (“AppTech”) (OTC: APCX), a financial technology company, today announced that the company has converted or defaulted on the vast majority of its debt. To help it in its efforts to list on a national stock exchange to further improve its financial stability, AppTech negotiated with debt holders to restructure their debt. The negotiations were well received by the creditors, allowing the Company to significantly improve its financial situation.

Debt holders were given the option of either converting AppTech’s outstanding debt into common stock at a slight discount to fair market value, or withholding all payments and interest for a period of time. one year in exchange for a one-time bonus. To date, thanks to these actions, AppTech has cleared the default on more than $ 3 million in debt. This includes over $ 1 million in conversion. AppTech will continue to seek to improve its financial position as it progresses towards its goals of effective public offering, listing on a national stock exchange, and launching its comprehensive financial services platform.

About AppTech (OTC: APCX)
AppTech Corp. (OTC: APCX) is a financial technology company using innovative payment processing and digital banking technologies to complement our core merchant services capabilities. Our patented and proprietary software will deliver progressive and adaptable products that are available through a suite of synergistic offerings directly to merchants, banking institutions and businesses. For more information about our company, please visit www.apptechcorp.com.

Forward-looking statements
This press release contains forward-looking statements which are inherently subject to risks and uncertainties. All statements contained in this document that are not historical facts are forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such as “anticipate”, “believe”, “estimate”, “ expect “,” predict “,” intend “,” may “,” plan “,” plan “,” predict “,” should “and” will “and similar expressions with regard to AppTech are intended to identify these forward-looking statements. These forward-looking statements involve risks and uncertainties concerning the Company. These risks and uncertainties include, without limitation, general economic and business conditions, the effects of geopolitical unrest and continuing regional conflicts, competition, changes in marketing methods, manufacturing or distribution delays, changes in customer order patterns, changes in supply and various other factors beyond the control of the company. Actual events or results may differ materially from those described in this press release due to any of these factors. AppTech has no obligation to update or change its forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts
AppTech Corp. Investor Relations
ir@apptechcorp.com
(760) 707-5955

James S. Painter III
Emerging Markets Consulting, LLC
jamespainter@emergingmarketsllc.com


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Allied Healthcare Products (NASDAQ: AHPI) bears much of the debt https://ctxetg.com/allied-healthcare-products-nasdaq-ahpi-bears-much-of-the-debt/ https://ctxetg.com/allied-healthcare-products-nasdaq-ahpi-bears-much-of-the-debt/#respond Sun, 03 Oct 2021 13:22:47 +0000 https://ctxetg.com/allied-healthcare-products-nasdaq-ahpi-bears-much-of-the-debt/ Warren Buffett said: “Volatility is far from synonymous with risk”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. We note that Allied Health Care Products, Inc. (NASDAQ: AHPI) has debt on its balance sheet. But the real […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk”. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. We note that Allied Health Care Products, Inc. (NASDAQ: AHPI) has debt on its balance sheet. But the real question is whether this debt makes the business risky.

What risk does debt entail?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. While it’s not too common, we often see indebted companies continually diluting their shareholders because lenders are forcing them to raise capital at a ridiculous price. Of course, debt can be an important tool in businesses, especially capital intensive businesses. The first thing to do when considering how much debt a business uses is to look at its cash flow and debt together.

What is the debt of Allied Healthcare Products?

You can click on the graph below for historical figures, but it shows Allied Healthcare Products had a debt of US $ 2.08 million in June 2021, up from US $ 2.37 million a year earlier. However, given that it has a cash reserve of US $ 726.2K, its net debt is less, at approximately US $ 1.35M.

NasdaqCM: AHPI History of debt to equity October 3, 2021

How strong is Allied Healthcare Products’ balance sheet?

Zooming in on the latest balance sheet data, we can see that Allied Healthcare Products had a liability of US $ 7.11 million due within 12 months and a liability of US $ 8.3,000 beyond. In compensation for these obligations, he had cash of US $ 726.2K as well as receivables valued at US $ 2.94M due within 12 months. Its liabilities therefore total $ 3.46 million more than the combination of its cash and short-term receivables.

Of course, Allied Healthcare Products has a market cap of US $ 27.6 million, so this liability is likely manageable. Having said that, it is clear that we must continue to monitor his record lest it get worse. When analyzing debt levels, the balance sheet is the obvious starting point. But it is the profits of Allied Healthcare Products that will influence the balance sheet in the future. So, when considering debt, it is really worth looking at the profit trend. Click here for an interactive snapshot.

Year over year, Allied Healthcare Products posted sales of US $ 36 million, a gain of 14%, although it reported no earnings before interest and taxes. This rate of growth is a bit slow for our taste, but it takes all types to make a world.

Emptor Warning

It is important to note that Allied Healthcare Products recorded a loss of earnings before interest and taxes (EBIT) in the past year. To be precise, the EBIT loss amounted to 527,000 USD. When we look at this and recall the liabilities on its balance sheet, versus the cash flow, it seems unwise to us that the company has debt. Quite frankly, we believe the record is far from up to par, although it could improve over time. However, it doesn’t help that he spent $ 4.0 million in cash in the past year. Suffice it to say, then, that we consider the stock to be very risky. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks lie on the balance sheet – far from it. For example, Allied Healthcare Products has 3 warning signs (and 1 which makes us a little uncomfortable) we think you should be aware of.

If you are interested in investing in companies that can generate profits without the burden of debt, check out this page free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Morrisons sale: US company CD&R wins £ 7 billion supermarket auction | Morrisons https://ctxetg.com/morrisons-sale-us-company-cdr-wins-7-billion-supermarket-auction-morrisons/ https://ctxetg.com/morrisons-sale-us-company-cdr-wins-7-billion-supermarket-auction-morrisons/#respond Sat, 02 Oct 2021 19:58:00 +0000 https://ctxetg.com/morrisons-sale-us-company-cdr-wins-7-billion-supermarket-auction-morrisons/ U.S. private equity firm Clayton, Dubilier & Rice (CD&R) is set to take over as new owner of Morrisons after the grocer’s board backs its £ 7.1bn bid for the supermarket chain following a tense auction with a rival suitor. 287p per share bid narrowly beat 286p bid by a consortium led by Softbank-owned Fortress […]]]>

U.S. private equity firm Clayton, Dubilier & Rice (CD&R) is set to take over as new owner of Morrisons after the grocer’s board backs its £ 7.1bn bid for the supermarket chain following a tense auction with a rival suitor.

287p per share bid narrowly beat 286p bid by a consortium led by Softbank-owned Fortress Investment Group on Saturday in a showdown to settle Morrisons’ future.

Morrisons’ board of directors, which met on Saturday afternoon to review the results of the three-round auction, said it would unanimously recommend CD & R’s “top” bid to shareholders, who will vote on the deal later this month. If approved, Morrisons will become a private company and will no longer be listed on the London Stock Exchange.

The auction effectively ends a four-month battle for the grocer, which has dragged on since CD&R, advised by former Tesco chief executive Sir Terry Leahy, made an initial approach in June.

“We are satisfied with the recommendation of the Morrisons board of directors and look forward to a shareholder vote to approve the transaction,” Leahy said in a statement. “We continue to believe Morrisons is a great company, with a strong management team, a clear strategy and good prospects.”

The total value of CD & R’s final offering, including debt, is £ 9.8 billion. Supply cannot be increased unless a new suitor appears with a firm offer for the supermarket chain.

Morrisons chairman Andrew Higginson said CD & R’s offer was “excellent value for money” – representing a 61% premium over Morrisons’ closing price of 178p before the company made. its first offering in June – and would protect Morrisons’ “fundamentals for all stakeholders”.

“CD&R have a strong retail background, a solid track record of developing and growing the companies they invest in, and they share our vision and ambition for Morrisons. We remain convinced that CD&R will be a responsible, thoughtful and prudent owner of a major UK grocery company, ”he added. “The Board of Directors is confident that Morrisons will continue to grow stronger under CD&R ownership.

Fortress admitted defeat shortly after the offers went public on Saturday afternoon, with managing partner Joshua Pack saying he wished the company and everyone involved “the best for the future.”

He added: “The UK remains a very attractive investment environment in many ways, and we will continue to explore opportunities to help strong management teams grow their businesses and create long-term value. . ”

CD&R’s 285 pence pre-auction offer had already won the backing of Morrisons board of directors, having promised that the company’s head office would remain in Bradford and confirmed that there were no plans to sell its stores to raise funds.

The private equity firm also said it fully supports Morrisons’ recent salary award of at least £ 10 an hour for all colleagues in stores and manufacturing sites, and has struck a deal with pension administrators in mid-September to provide additional security and support. to the regime, which has 53,600 members. Fortress was reportedly in talks with retirement administrators on Friday with the aim of reaching a similar deal ahead of the auction.

Unions and politicians are worried about the wave of private capital buyouts targeting UK businesses, fearing that companies will be stripped of their property, laden with debt and working conditions deteriorate.

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Morrisons employs around 120,000 people in the UK, including in its 497 supermarkets, as well as in factories, farms and a company-owned fishing trawler.

Saturday’s auction, which was managed by the city’s takeover committee that oversees the UK M&A process, was triggered after none of the bidders declared bids finals in the past four months. In order to avoid a raffle, Fortress had been asked to make a final offer with an “even” number of pence, while CD&R had been asked to make an offer with an “odd” number.

Shareholders will vote on the offer on October 19.


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Health Logic announces proposed actions for debt transaction https://ctxetg.com/health-logic-announces-proposed-actions-for-debt-transaction/ https://ctxetg.com/health-logic-announces-proposed-actions-for-debt-transaction/#respond Fri, 01 Oct 2021 23:48:00 +0000 https://ctxetg.com/health-logic-announces-proposed-actions-for-debt-transaction/ TSXV: CHIP.H CALGARY, AB, October 1, 2021 / CNW / – Interactive Health Logic Inc. (“Health logic“or the”Society“) (TSXV: CHIP.H) (OTCPK: CHYPF), is pleased to announce that it has entered into debt settlement agreements (the”Debt settlement agreements“) with certain directors, officers and consultants of the Company (the”Parties“) by which he agreed to convert a total […]]]>

TSXV: CHIP.H

CALGARY, AB, October 1, 2021 / CNW / – Interactive Health Logic Inc. (“Health logic“or the”Society“) (TSXV: CHIP.H) (OTCPK: CHYPF), is pleased to announce that it has entered into debt settlement agreements (the”Debt settlement agreements“) with certain directors, officers and consultants of the Company (the”Parties“) by which he agreed to convert a total of $ 205,860.34 in debt (the “Debts“) due to the Parties relating to expenses, loans and services rendered to the Company up to September 2021 in ordinary shares of the Company’s capital (the “Settlement actionsThe Company proposes to issue the Settlement Shares in order to preserve liquidity to fund future operations.

In accordance with the terms of the debt settlement agreements, the Company has agreed to issue a total of 1,029,301 settlement shares at a deemed issue price of $ 0.20 by Settlement Action in full and final settlement of Debts owed to the Parties. By issuing the Settlement Shares, the Debts will be definitively extinguished.

The Settlement Shares will be issued in accordance with certain prospectus exemptions available under Canadian securities legislation and will be subject to a hold period of four months and one day from the date of issue.

789,301 of the Settlement Shares are issued to insiders of the Company (the “Insiders“). In accordance with Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101“), the debt settlement will constitute a” related party transaction “because insiders are considered related parties to the Company. The Company will rely on the exemptions from the formal minority assessment and approval requirements of the Settlement. 61-101 (in accordance with paragraphs 5.5 (a) and 5.7 (a)) since the fair market value of the securities to be distributed to insiders and the consideration received from insiders will not exceed 25% of the market capitalization of the Company. been approved by all of the directors of the Company.

The conversion of debts and the issuance of Settlement Shares are subject to acceptance by the TSX Venture Exchange (“TSXV“). There is no guarantee that these conditions precedent will be satisfied or that any of the transactions will be completed as described herein or not at all.

About the company

Health Logic Interactive, through its wholly owned operating subsidiary My Health Logic, develops and markets consumer-centric, portable point-of-service diagnostic devices that connect to patient smartphones and digital healthcare platforms. continuous. The Company plans to use its patent-pending lab-on-a-chip technology to deliver rapid results and facilitate the transfer of this data from the diagnostic device to the patient’s smartphone. The Company expects this data collection to enable it to better assess patient risk profiles and provide better patient outcomes. Our mission is to empower people to achieve early detection anytime, anywhere through actionable digital management of chronic kidney disease. For more information visit us at: www.healthlogicinteractive.com

Further information regarding Health Logic Interactive Inc. and its disclosure documents are available on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Notes

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those relating to the completion of actions for the debt transaction, including the debt conversion, the issuance of settlement shares and acceptance by the TSXV, and the strategy, plans, objectives, goals and targets of the Company, together with any statement preceded, followed by or including the words “believe”, “s ‘expect’, ‘aim’, ‘intend to’, ‘plan’, ‘continue’, ‘will’, ‘may’, ‘would’, ‘anticipate’, ‘estimate’, ‘anticipate’, ‘ predict ”,“ project ”,“ seek ”,“ should ”or similar expressions or the negative of these, are in front- watchful statements. These statements are not historical facts but represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or expected in these forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, without limitation, the risk factors discussed in the Company’s MD&A for the year ended December 31, 2020. Management provides forward-looking statements because it believes they provide information useful to investors when considering their investment objectives and caution investors not to place undue reliance on forward-looking information. Accordingly, all forward-looking statements made in this press release are qualified by these and other cautions or factors contained herein, and there can be no assurance that actual results or developments will be achieved. or, even if they are substantially realized, that they will have the consequences or the expected effects on the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. required.

SOURCE Health Logic Interactive Inc.

For further information: George Kovalyov, Director, [email protected], 1-877-456-4424.

Related links

https://www.healthlogicinteractive.com/


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Fitch warns fight against debt ceiling could cost America its AAA credit rating https://ctxetg.com/fitch-warns-fight-against-debt-ceiling-could-cost-america-its-aaa-credit-rating/ https://ctxetg.com/fitch-warns-fight-against-debt-ceiling-could-cost-america-its-aaa-credit-rating/#respond Fri, 01 Oct 2021 16:44:05 +0000 https://ctxetg.com/fitch-warns-fight-against-debt-ceiling-could-cost-america-its-aaa-credit-rating/ By Matt Egan Fitch Ratings warned Friday that the fight in Washington to raise the debt ceiling could force the firm to lower America’s AAA credit rating. “The failure of the latest efforts to suspend the US federal government’s debt limit indicates that the current stalemate may be among the most prolonged since 2013,” Fitch […]]]>

By Matt Egan

Fitch Ratings warned Friday that the fight in Washington to raise the debt ceiling could force the firm to lower America’s AAA credit rating.

“The failure of the latest efforts to suspend the US federal government’s debt limit indicates that the current stalemate may be among the most prolonged since 2013,” Fitch said.

Echoing what S&P Global Ratings said on Thursday, Fitch said he believed the debt limit would be raised or suspended “in time to avoid an event of default.”

However, Fitch added that “if this is not done in a timely manner, the political swindle and reduced funding flexibility could increase the risk of a US sovereign default.”

The Treasury Department has warned it will run out of cash and exhaust extraordinary measures by October 18. At this point, the Treasury would no longer have 100% confidence in its ability to pay US bills.

Fitch suggested that moving closer to that date could trigger a downgrade.

“We consider that reaching the Treasury date X without raising the debt limit as the main extreme risk to the US sovereign’s willingness and ability to pay,” Fitch said. “If it seemed likely, we would revise the US sovereign rating, with likely negative implications.”

Fitch reiterated that the United States would likely be downgraded even if it continued to pay bondholders, but delayed other payments like Social Security and paychecks to federal workers.

“Prioritizing debt payments, assuming it is an option, would lead to non-payment or delayed payment of other obligations, which would likely undermine the ‘AAA’ status of the United States.” , Fitch said.

In the fight against the debt ceiling in 2011, S&P first lowered the credit rating of the United States, while Fitch and Moody’s maintained a perfect AAA rating on the world’s largest economy. Fitch has had a negative outlook on the United States since July 2020.

“The impasse on debt containment reflects a lack of political consensus that has hampered the United States’ ability to meet fiscal challenges for some time,” Fitch said Friday.

Fitch said that amending the reconciliation bill to address the debt ceiling “seems the most viable option to raise the debt ceiling, but the process would take some time in the Senate.”

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