Total Liabilities – Free Bassuk.com http://freebassuk.com/ Sat, 18 Sep 2021 19:55:59 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://freebassuk.com/wp-content/uploads/2021/07/icon.png Total Liabilities – Free Bassuk.com http://freebassuk.com/ 32 32 Evaly’s office remains closed http://freebassuk.com/evalys-office-remains-closed/ http://freebassuk.com/evalys-office-remains-closed/#respond Sat, 18 Sep 2021 18:00:00 +0000 http://freebassuk.com/evalys-office-remains-closed/ The office of the controversial Evaly e-commerce platform will remain closed until further notice as aggrieved customers and sellers continue to flock to the premises to demand their merchandise or refund. “The office will reopen with authorization after the completion of the investigation by the authorities,” read a poster hanging at the entrance to Evaly’s […]]]>

The office of the controversial Evaly e-commerce platform will remain closed until further notice as aggrieved customers and sellers continue to flock to the premises to demand their merchandise or refund.

“The office will reopen with authorization after the completion of the investigation by the authorities,” read a poster hanging at the entrance to Evaly’s headquarters on Dhanmondi 14 road.

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However, Evaly, in a post on her official Facebook page, wrote that her employees will be working from home until further notice.

All Evaly activities will continue as usual under the arrangement, he said.

The cell phone of the company’s vice president, Mahdi Chowdhury, was found switched off when the correspondent tried to contact him.

Another notice was posted on their Facebook page on Friday, stating that Evaly’s normal delivery activities were being delayed in the absence of Managing Director Mohammad Rassel and President Shamima Nasrin.

The two men were arrested the day before by the Rapid Action Battalion for embezzling hundreds of taka crores. They were remanded in custody for three days each on Friday.

“In the absence of our two main signatories – the honorable CEO and the president – we are unable to pay the regular invoices of our sellers,” the notice reads, adding that all orders placed for the T10 campaign on their website will be recorded. as “requests” from Saturday.

Meanwhile, many clients were seen flocking to the office for their belongings and money yesterday.

Masood Parvez, a driver by profession, said he ordered a motorcycle worth Tk 1.16 lakh in January.

The bike had to be delivered within three months. But until yesterday, he received neither the motorcycle nor a refund, he said.

“It was my hard-earned money. It was a poor man’s money. If I don’t get it back, it will be a great loss,” Masood said.

Many have demanded that the government take action to reimburse their money even though the CEO and President have to be released for it.

Later that evening, a group of vendors and customers staged a protest outside Evaly’s headquarters to demand the release of Rassel and his wife Nasrin.

They urged the government to release the two so that Evaly can run the business and reimburse the amount they owe customers and vendors.

When contacted, Newton Das, Gulshan’s deputy police commissioner, said they were questioning the CEO and chairman of Evaly and wanted to know where all the money had gone.

They then asked them about the creation of the company, its trade policy, its obligations to customers and sellers and whether they had siphoned off any money, Das added.

Tough action will be taken against e-commerce companies like Evaly and Eorange, AKM Hafiz Akhter, Dhaka Metropolitan Police Supplementary Commissioner (DB), said at a press briefing yesterday.

“There are many organizations involved in fraudulent activity like Evaly and E-orange. They are involved in deceiving customers through below-market offers. Investigations are ongoing and action will be taken upon investigation. “, he added.

DHAMAKA SHOPPING SELLERS WARN OF LEGAL ACTION

Meanwhile, aggrieved merchants from another controversial e-commerce platform, Dhamaka Shopping, have warned of legal action if their dues amounting to around Tk 200 crore are not paid sooner rather than later.

As per the agreement with Invariant Telecom Bangladesh, the parent company of Dhamaka Shopping, sellers were expected to receive their payment within 10 business days of delivery of the merchandise.

“But unfortunately, those 10 days have now become 160 working days,” Jahangir Alam Emon, president of the Dhamakashopping.com Sellers Association, said at a press conference at the Dhaka Journalists Unit.

No less than 650 entrepreneurs had supplied 2,000 types of products to the e-commerce platform created in November last year modeled on Evaly: offering implausible discounts on products with prepayment and advertising massive.

Dhamaka Shopping hit rough waters in July after a deluge of customer complaints about undelivered goods to the National Consumer Rights Protection Directorate.

This led to an investigation into the company by the Criminal Investigation Department (CID) of the police.

Dhamaka customers have yet to receive products worth Tk 100 crore, according to Emon.

In its preliminary investigation, the CID found evidence of Tk 50 crore money laundering by senior officials in Dhamaka and asked the Bangladesh Bank to freeze their bank accounts.

Meanwhile, several banks and mobile financial service provider bKash have severed their payment gateway with Dhamaka in an attempt to protect their customers.

Then, on September 9, the CID sued Dhamaka Shopping General Manager Jasim Uddin Chisti, his wife, their children, a company director and four other organizations for money laundering of approximately Tk 117 crore.

Despite repeated requests, authorities at Dhamaka Shopping do not cooperate with the sellers, Emon said.

“As young traders and SMEs, we have run our business by borrowing money from relatives and banks. Now we are on the verge of bankruptcy,” said Baharul Alam, deputy general secretary of the platform.

Between July and September, traders sought help from various ministries and the central bank to collect their contributions.

“But the efforts were in vain,” said Alam, also the forum’s vice-chairman.

The government should take the necessary steps to reimburse dues to sellers and provide goods to customers.

“If the problem is not resolved, we will take legal action,” he added.


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Bangladesh lags Vietnam in reforms to attract FDI and boost exports: experts at PRI webinar http://freebassuk.com/bangladesh-lags-vietnam-in-reforms-to-attract-fdi-and-boost-exports-experts-at-pri-webinar/ http://freebassuk.com/bangladesh-lags-vietnam-in-reforms-to-attract-fdi-and-boost-exports-experts-at-pri-webinar/#respond Sat, 18 Sep 2021 04:04:18 +0000 http://freebassuk.com/bangladesh-lags-vietnam-in-reforms-to-attract-fdi-and-boost-exports-experts-at-pri-webinar/ Massive reforms and opening up of economic policies have helped Vietnam reach the current stage of development as Bangladesh still lags behind in these areas and has failed to keep pace with Vietnam’s development, said analysts. For example, Vietnam adopted the Doimoi, an economic policy renewal program in the 1980s, brought about massive reform of […]]]>

Massive reforms and opening up of economic policies have helped Vietnam reach the current stage of development as Bangladesh still lags behind in these areas and has failed to keep pace with Vietnam’s development, said analysts.

For example, Vietnam adopted the Doimoi, an economic policy renewal program in the 1980s, brought about massive reform of turned economic policies and attracted many foreign direct investments (FDI), which ultimately made Vietnam a model of FDI destination, they said.

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Even though the economic position of Bangladesh and Vietnam were similar even in 1990, Vietnam has achieved commendable success in many areas, but Bangladesh still lags behind.

For example, exports from Bangladesh and Vietnam hovered around $ 5 billion in the 1990s, but last year the figure stood at nearly $ 38.75 billion for Bangladesh and Vietnam, it’s over $ 280 billion.

Vietnam could make such a big difference in just 30 years because of its openness in economic and political policies, they added.

A minister, economists, trade agency executives and businessmen made the comments during a webinar on “Vietnam’s Superb Export Performance: Lessons for Bangladesh” hosted by the Policy Research Institute (PRI) from Bangladesh on September 17.

Zaidi Sattar, PRI president, moderated the discussion.
In his opening speech, Sadiq Ahmed, Vice President of the PRI, said that Vietnam had taken strong steps from the early stages to stabilize the macroeconomy and had taken steps to preserve macroeconomic stability at all stages of the process. of development.

Tax revenue as a percentage of gross domestic product (GDP) is around 9 percent of GDP in Bangladesh, one of the weakest fiscal performance in the world, compared to 26 percent of GDP in Vietnam, Ahmed said, adding that Vietnam also maintained a flexible exchange rate and became strong in the global value chain.

Vietnam has smartly reformed the investment law and adopted strategic trade policies, which have helped Vietnam attract FDI, said Mustafizur Rahman, distinguished member of the Center for Policy Dialogue (CPD), a private think tank.

Smart and strategic trade policy has also helped to secure a favorable tariff regime for Vietnam on foreign trade.

For example, Vietnam’s most-favored nation (MFN) tariff treatment is 11.09% on average, while Bangladesh’s MFN tariff is high in different countries.

Citing examples from Samsung and Youngone, Rehman Sobhan, Chairman of CPD, also said that the ease of doing business in Bangladesh is still a major factor in attracting FDI.

South Korean mobile tech giant Samsung wanted to invest in Bangladesh in 1996 and another South Korean conglomerate Youngone Corporation, which has large companies in the country, negotiated to bring Samsung to Bangladesh.

Finally, Samsung did not come here because Youngone was unable to cede land in its Export Processing Zone (EPZ) to Chattogram due to some land disputes.

Samsung established a factory in Vietnam and Bangladesh lost the opportunity to host the global electricity company, Sobhan also said.

Why did this happen in Bangladesh, he asked.

He also asked why diversification had not taken place in clothing items in Bangladesh even after the country took a long time to tap more market for the clothing trade.

Syed Nasim Manzur, Managing Director of Apex Footwear Ltd, a leading footwear exporter and local seller, said currently Vietnam is the second largest footwear exporter in the world with $ 22.07 billion in footwear export last year while Bangladesh’s position in the world’s footwear export is 17th with the export of just over $ 1 billion last year.

Manzur, also a former president of the Metropolitan Chamber of Commerce and Industry (MCCI), said Bangladesh needs FDI beyond the dollar, as many world-famous investors have chosen Vietnam as their destination. investment because of its good business climate and openness in trade and economic policies.

He also said that better ease of doing business, better connectivity, better exchange rate, better tariff regime and better customs policies have helped Vietnam attract FDI while Bangladesh cannot be so. performing in these areas.

For example, he said the average time for goods clearance in Vietnam is 2-3 days while in Bangladesh the average time for goods clearance is 2-3 weeks.

Rubana Huq, former president of the Bangladesh Garment Manufacturers and Exporters Association, said productivity in the manufacturing sector needs to be improved.

Huq said Bangladesh has opportunities even in the clothing sector, such as polyester staple fibers. The continuation of the policy is important for the country, she said, adding that light engineering is another potential sector for the country.

Mr. Syeduzzaman, former finance minister, said Vietnam is performing well not only in product manufacturing but also in agricultural and engineering products.

Vietnam is the world’s second largest exporter of coffee after Brazil and also a very strong country in the export of machinery and steel.

Free Trade Agreements (FTAs) have also played a very important role in Vietnam’s envious economic growth. Vietnam is a member of the Association of Southeast Asian Nations (ASEAN) and has already signed the FTA with the European Union (EU), which will soon enter into force.

Vietnam’s accession to the World Trade Organization (WTO) in 2007 also helped Vietnam open up its economy and trade, he said.

Nihad Kabir, President of MCCI, said: “We should ask foreign investors why they are leaving Bangladesh and what their problems are. If we don’t ask people what their problems are, then how are we going to contact them, ”she asked.

She also asked where is the fear of signing FTAs ​​with Bangladesh’s major trading partners. It also shed light on the pathological state of the foreign currency exchange rate in business and the poor skills of university graduates.

Nazneen Ahmed, country economist in the United Nations Development Program (UNDP) office in Bangladesh, said the warm foreign relations with different countries have also helped Vietnam attract FDI.

Apart from trade policies, Bangladesh needs to initiate a very warm foreign relationship focused mainly on economic diplomacy.

Mr Masrur Reaz, chairman of the Policy Exchange of Bangladesh, another private think tank, said it was high time to develop sectors other than clothing to create more jobs for the unemployed.

He also said that Bangladesh has the potential to export electronic and mechanical items. Vietnam will enjoy more trade advantages once the FTA with the EU enters into force, he added.

Rizwan Rahman, chairman of the Dhaka Chamber of Commerce and Industry, stressed the need to improve warehouses, customs and port facilities to further facilitate business.

Planning Minister MA Mannan said political culture and the pursuit of politics in Vietnam played a vital role for development. After a few wars, Vietnam focused on trade and economic development, Mannan said.


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NVEE vs. ACN: Which Stock Should Investors Buy Now? – September 17, 2021 http://freebassuk.com/nvee-vs-acn-which-stock-should-investors-buy-now-september-17-2021/ http://freebassuk.com/nvee-vs-acn-which-stock-should-investors-buy-now-september-17-2021/#respond Fri, 17 Sep 2021 14:50:29 +0000 http://freebassuk.com/nvee-vs-acn-which-stock-should-investors-buy-now-september-17-2021/ Investors interested in advisory services stocks are likely familiar with NV5 Holdings (Quick quote NVEENVEE – Free report) and Accenture (ACN Quick QuoteACN – Free report). But which of these two stocks is offering better value for value investors right now? We will have to take a closer look. There are many strategies for discovering […]]]>

Investors interested in advisory services stocks are likely familiar with NV5 Holdings (NVEE Free report) and Accenture (ACN Free report). But which of these two stocks is offering better value for value investors right now? We will have to take a closer look.

There are many strategies for discovering value stocks, but we’ve found that pairing a strong Zacks ranking with an impressive rating in the Value category of our style scoring system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our style scores highlight companies with specific characteristics.

NV5 Holdings and Accenture are ranked 2 (Buy) and 3 (Hold) respectively for Zacks. Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors need to be assured that NVEE has an improving earnings outlook. But that’s only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional numbers and metrics to help determine if a company is undervalued at its current stock price level.

Our Value category ranks stocks based on a number of key metrics including proven P / E ratio, P / S ratio, earnings performance and cash flow per share, as well as various other fundamentals that value investors frequently use.

NVEE currently has a forward P / E ratio of 23.14, while ACN has a forward P / E of 34.79. We also note that NVEE has a PEG ratio of 1.44. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. ACN currently has a PEG ratio of 3.48.

Another notable valuation metric for NVEE is its P / N ratio of 2.63. The P / B ratio is used to compare the market value of a stock with its book value, which is defined as total assets minus total liabilities. For comparison, ACN has a P / B of 10.92.

Based on these metrics and many others, NVEE has a value rating of B, while ACN has a value rating of C.

NVEE sits above ACN thanks to its strong earnings outlook, and based on these valuation numbers, we also believe NVEE is the top value option right now.


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PCCW (HKG: 8) has no shortage of debt http://freebassuk.com/pccw-hkg-8-has-no-shortage-of-debt/ http://freebassuk.com/pccw-hkg-8-has-no-shortage-of-debt/#respond Fri, 17 Sep 2021 00:24:54 +0000 http://freebassuk.com/pccw-hkg-8-has-no-shortage-of-debt/ Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from risk.” 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. We can see […]]]>

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from risk.” 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. We can see that PCCW Limited (HKG: 8) uses debt in his business. But the real question is whether this debt makes the business risky.

When Is Debt a Problem?

Debt helps a business until the business struggles to repay it, either with new capital or with free 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) situation is where a company has to dilute its shareholders at a cheap share price just to get its debt under control. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. When we look at debt levels, we first consider both liquidity and debt levels.

See our latest review for PCCW

What is PCCW’s net debt?

The graph below, which you can click for more details, shows that PCCW had HK $ 58.5 billion in debt as of June 2021; about the same as the year before. However, he has HK $ 7.59 billion in cash to compensate for this, which leads to net debt of around HK $ 51.0 billion.

SEHK: 8 History of debt to equity September 17, 2021

Is PCCW’s track record healthy?

Zooming in on the latest balance sheet data, we can see that PCCW had a liability of HK $ 20.0 billion owed within 12 months and a liability of HK $ 65.9 billion owed beyond that. In return, he had HK $ 7.59 billion in cash and HK $ 7.00 billion in receivables due within 12 months. Its liabilities therefore total HK $ 71.3 billion more than the combination of its cash and short-term receivables.

The lack here weighs heavily on the HK $ 31.0 billion business itself, as if a child struggles under the weight of a huge backpack full of books, his gym equipment and a trumpet. We therefore believe that shareholders should watch it closely. Ultimately, PCCW would likely need a major recapitalization if its creditors demanded repayment.

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).

PCCW shareholders are faced with the double whammy of a high net debt / EBITDA ratio (7.5) and relatively low interest coverage, since EBIT is only 2.4 times the expenses of ‘interests. This means that we would consider him to be in heavy debt. Investors should also be troubled that PCCW has seen its EBIT drop by 15% over the past twelve months. If things continue like this, managing the debt will be about as easy as putting an angry house cat in its travel box. The balance sheet is clearly the area you need to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether PCCW 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.

Finally, a business needs free cash flow to pay off debts; accounting profits are not enough. We must therefore clearly check whether this EBIT generates a corresponding free cash flow. Over the past three years, PCCW has recorded free cash flow of 54% of its EBIT, which is close to normal given that free cash flow excludes interest and taxes. This free cash flow puts the business in a good position to repay debt, if any.

Our point of view

At first glance, PCCW’s net debt to EBITDA left us hesitant about the stock, and its total liability level was no more attractive than the single empty restaurant on the busiest night of the year. But on the positive side, its conversion from EBIT to free cash flow is a good sign and makes us more optimistic. Considering all of the above factors, it appears that PCCW has too much debt. While some investors like this kind of risky game, it is certainly not our cup of tea. 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 discovered 2 warning signs for PCCW (1 shouldn’t be ignored!) Which you should be aware of before investing here.

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.

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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.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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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Greenville City Council Considering Salary Increase – Greene Publishing, Inc. http://freebassuk.com/greenville-city-council-considering-salary-increase-greene-publishing-inc/ http://freebassuk.com/greenville-city-council-considering-salary-increase-greene-publishing-inc/#respond Thu, 16 Sep 2021 16:18:02 +0000 http://freebassuk.com/greenville-city-council-considering-salary-increase-greene-publishing-inc/ Patrick patrick rick@greenepublishing.com At the regular Greenville City Council meeting on Monday, September 13, council members proceeded to the first reading of an ordinance which, if passed, would grant council members a 40 percent salary increase, or $ 100 per month on top of $ 250 per month, to $ 350 per month. A second […]]]>

Patrick patrick

rick@greenepublishing.com

At the regular Greenville City Council meeting on Monday, September 13, council members proceeded to the first reading of an ordinance which, if passed, would grant council members a 40 percent salary increase, or $ 100 per month on top of $ 250 per month, to $ 350 per month. A second reading of the ordinance is scheduled at the regular meeting of the municipal council on Monday, October 11. After this second reading, the council will vote on the question. If adopted by council members, the increase will take effect on Wednesday, December 1.

The board also heard a presentation from Ben Clark, Certified Public Accountant (CPA) with James Moore CPA and Consultants. Clark reviewed the city’s most recent financial audit and answered questions from council members. One of the things Clark pointed out to board members was a required “financial assessment” that the state auditor general requires from auditors. “It’s a pretty ‘black and white’ assessment,” Clark said. “We take a city’s numbers and put them in a spreadsheet, compare them to previous years and compare them to a benchmark that the Auditor General gives us, which is usually cities of similar size. [Then we will] come out with a note. This rating is classified as “unfavorable”, “inconclusive” or “favorable”. When we did this, the odds [for Greenville] was “unfavorable”. Clark went on to tell board members that this shows a “financial situation that could deteriorate.” I know it sounds uncomfortable. The thing I can tell you is that we do the measurements and he spits out a result. I can try to tell you some areas that can contribute to this. “During the audit of the previous year, this rating was” inconclusive “. Clark offered to provide the actual spreadsheet that led to the discovery. “I’m not planning on having fun with this, Mr. Clark,” Mayor Brittni Brown said with a laugh. “The numbers, I’ll let someone else do it.”

Clark highlighted various important elements of the report to board members. One of them was a basic balance sheet for the city’s government fund. This balance sheet showed total assets of $ 251,707 at the end of September 2020. Total liabilities stood at $ 157,367. Clark pointed out that any time you have more assets than liabilities, that’s a good thing. However, one area of ​​concern could be a sharp drop in fund balances. Although the city ended the year with a fund balance of $ 94,340, that amount was well below the fund balance of $ 182,858 that the city started the year with. This net change of $ 88,518 in the fund’s balance could be a “significant factor” in the audit findings, Clark told the board. Clark suggested to the board to “make sure you are constantly reviewing the budget.” Looking at the numbers, general government spending totaled $ 406,653, which is a significant increase from about $ 331,000 the previous year.

In the city’s property fund, Clark said it was important to look at the “net position” which was “what was left after all the bills were paid.” This is also what Clark called “fairness” to the city. The city’s total net position was $ 8,559,773 at year end. Clark pointed out that this was not “cash” or any kind of “liquid” asset that could be spent, but was almost entirely capital assets, such as infrastructure and so on.

Chief Executive Officer Lee Jones spoke to council about the timeline for finalizing the city’s budget. The final budget hearing is scheduled to take place on Monday, September 27 at 5 p.m. The hearing will be held at City Hall, located at 154 SW Old Mission Ave., Greenville.

Council approved the advertisement for a part-time City Clerk position with the Town of Greenville. This person would be the custodian of city records and respond to public records requests made to the City of Greenville. They would also sit on the local election solicitation board. To apply, interested parties are encouraged to contact the City of Greenville at (850) 948-2251 or by email at Clerc@mygreenvillefl.com.


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ORGANIC VERDE: MANAGEMENT DISCUSSION AND ANALYSIS OR OPERATING PLAN (Form 10-K) http://freebassuk.com/organic-verde-management-discussion-and-analysis-or-operating-plan-form-10-k/ http://freebassuk.com/organic-verde-management-discussion-and-analysis-or-operating-plan-form-10-k/#respond Wed, 15 Sep 2021 20:28:07 +0000 http://freebassuk.com/organic-verde-management-discussion-and-analysis-or-operating-plan-form-10-k/ This annual report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended. as amended (the “Trade Act”). These forward-looking statements are not historical facts but are rather based on […]]]>

This annual report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended. as amended (the “Trade Act”). These forward-looking statements are not historical facts but are rather based on current expectations, estimates and projections. We can use words such as “anticipate”, “expect”, “intend”, “plan”, “believe”, “foresee”, “estimate” and variations of these words and similar expressions. to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or expected. You should read this report in its entirety and with the understanding that actual future results may be materially different from what we expect. The forward-looking statements included in this report are made as of the date of this report and should be evaluated taking into account any changes occurring after the date of this report. We will not update any forward-looking statements although our circumstances may change in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. .




RESULTS OF OPERATIONS



Working Capital



                             April 30, 2021       April 30, 2020
                                   $                    $
Current Assets                     2,207,033                1,631
Current Liabilities                  484,014            3,136,509
Working Capital (Deficit)          1,723,019          (3,134,878)




Cash Flows



                                                  April 30,
                                                    2021           April 30, 2020
                                                      $                  $
Cash Flows used in Operating Activities             (685,159)            (177,751)
Cash Flows used in Investing Activities           (2,501,982)                    -
Cash Flows from Financing Activities                5,273,407              155,630
Net increase (decrease) in Cash During Period       2,086,266             (22,121)




Operating Revenues


During the year ended April 30, 2021, the Company recorded revenues of $ 48,520
relating to royalties earned on oil and gas interests acquired during fiscal year 2021. There was no income during the fiscal year ended April 30, 2020.

————————————————– ——————————

                                       20

————————————————– ——————————

Operating expenses and net loss

During the year ended April 30, 2021, the Company recorded operating expenses of
$ 2,964,408 compared to $ 259,217 during the year ended April 30, 2020. The increase in operating expenses is attributable to an impairment charge on the Company’s acquisition of the oil and gas properties of $ 1,927,810because the Company acquired several oil and gas royalty rights during the year which were tested for impairment. Although the Company has recorded the impairment in accordance with ASC 932, the Company continues to focus on all oil and gas interests it required during the year and intends to acquire other oil and gas interests in the future. In addition, the Company suffered increases in consulting fees from $ 81,300, the general and administrative costs of $ 459,632, the management costs of $ 165,970, and the professional fees of $ 68,910 due to an overall increase in operational activity during the year.

Net loss for the year ended April 30, 2021 was $ 3,315,000 compared to
$ 1,575,407 during the year ended April 30, 2020. In addition to the increase in operating expenses, the Company recorded a $ 121,974 loss on the change in fair value of the derivative liability, $ 366,057 in debit interest, commitment fees of
$ 27,413, and a gain on debt settlement of $ 166,517 respecting conversions and settlements of convertible debentures outstanding during the year. During the year ended April 30, 2020, the Company has registered a $ 794,930
loss on the change in fair value of the derivative liability, $ 231,658 interest charges and debt unwinding charges, and $ 289,602 loss on debt settlement. The increase in net loss in the current year is mainly due to an increase in operating expenses and the impairment on oil and gas properties of $ 1,927,810.

For the year ended April 30, 2021, the Company recorded a loss per share of
$ 0.03 compared to a loss per share of $ 1.03 per share for the year ended
April 30, 2020.

Liquidity and capital resources

From April 30, 2021, the total balance of the Company’s assets was $ 3,217,998, compared to $ 1,631 like a April 30, 2020. The increase in total assets is explained by

cash increases of $ 2,086,266 due to the funding received from the issuance of ordinary shares during the year, $ 895,487 relating to the book value of oil and gas investments acquired during the financial year, $ 86,744 accounts receivable relating to royalties receivable from the Company’s oil and gas interest.
$ 115,478 rights of use relating to the Company’s operating lease at its head office.

From April 30, 2021, the Company had a total liability of $ 562,242 compared to the total liabilities of $ 3,136,509 like a April 30, 2020. The decrease in total liabilities is due to the settlement of convertible debentures outstanding during the year, which resulted in a decrease in the carrying value of convertible debentures by $ 563,522, a decrease in the liability derived from $ 1,597,049 due to lower indebtedness subject to variable conversion rates and a decrease in $ 368,060 on the Preferred Series B convertible liability due to conversions into common stock during the year. The amounts were offset by an increase in the operating lease liability of $ 125,811 for the operating lease of the Company’s head office. The remaining differences were due to normal temporary differences between the settlement of accounts payable and accrued liabilities and amounts due to related parties.

From April 30, 2021, the Company had working capital of $ 1,723,019 compared to a working capital deficit of $ 3,134,878 from April 30, 2020. The increase in working capital is attributable to the financing of additional cash proceeds from the issuance of common shares during the year as well as the conversion of outstanding convertible debentures and series preferred shares. B with the issuance of ordinary shares.

Cash flow from operating activities

During the year ended April 30, 2021, the Company used $ 685,159 cash flow for operating activities compared to $ 177,751 of cash for operating activities during the year ended April 30, 2020. The increase is due to an increase in operating activities during the year, including the acquisition of oil and gas interests, which resulted in an increase in general and administrative and general expenses, including consulting and management fees for the supply of oil and gas properties; and professional fees relating to the drafting and revision of legal documents relating to the acquisition of oil and gas interests.

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                                       21

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Cash flow from investing activities

During the year ended April 30, 2021, the Company has hired $ 2,501,982 for the acquisition of oil and gas interests compared to nil during the year ended
April 30, 2020 given that the Company had limited operating activity during fiscal year 2020.

Cash flow from financing activities

During the year ended April 30, 2021, the Company received $ 5,361,525 the issuance of ordinary shares as well as $ 595,000 income from shares issued after the end of the financial year, $ 177,000 the issue of new convertible bonds, $ 22,917 payables related to the Paycheck Protection Program (and was canceled by the U.S. Small Business Administration in April 2021) and
$ 43,250 parties related to support operations. The product was compensated by the reimbursement of $ 794,349 for convertible debentures, and $ 115,810 to related parties. During the year ended April 30, 2020, the Company received $ 155,630 of cash from financing activities from the issuance of convertible debentures, as its activities were limited compared to fiscal 2021.



Going Concern


We have not achieved profitable operations and are dependent on securing financing to pursue significant acquisitions and operations. During the year ended April 30, 2021, the Company incurred a net loss of $ 3,315,000 and used money from $ 685,159 for operating activities. Like a April 30, 2021, the Company had an accumulated deficit of $ 10,836,745. These factors raise significant doubt as to the Company’s ability to continue as a going concern. The audited financial statements included in this Form 10-K do not include any adjustments to the collectability and classification of the amounts of recorded assets and the classification of liabilities that may be required if the Company is unable to continue as a going concern.

Off-balance sheet provisions

The Company has no off-balance sheet arrangements.



Future Financings


We will continue to depend on sales of shares of our common stock in order to continue to fund our business activities. Additional share issues will result in dilution for existing shareholders. There can be no assurance that we will make additional sales of equity securities or arrange for debt or other financing to finance planned acquisitions and exploration activities.



Critical Accounting Policies


Our financial statements and the accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied consistently. The preparation of financial statements in accordance with
we Generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as at the date of the financial statements, and the reported amounts of income and expenses as of the date of the financial statements. during reporting periods.

We regularly review the accounting policies and estimates we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management’s estimates are based on historical experience, information from professional third parties and various other assumptions that are considered reasonable given the facts and circumstances. Actual results could differ from estimates made by management.

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                                       22

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Recently published accounting position papers

The Company has implemented all the new accounting positions in force. These positions did not have a material impact on the financial statements, unless otherwise indicated, and the Company does not believe that there are any other new accounting positions that could have a material impact on its financial position or its operations. operating results.



Contractual Obligations


We are a small reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and we are under no obligation to provide information under this section.

© Edgar online, source Previews


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Are Imperial Stocks (CVE: IEI) Using Too Much Debt? http://freebassuk.com/are-imperial-stocks-cve-iei-using-too-much-debt/ http://freebassuk.com/are-imperial-stocks-cve-iei-using-too-much-debt/#respond Sat, 11 Sep 2021 14:40:18 +0000 http://freebassuk.com/are-imperial-stocks-cve-iei-using-too-much-debt/ Howard Marks put it well when he said that, rather than worrying about stock price volatility, “The possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. ” When we think about how risky a business is, we always like to look at its use […]]]>

Howard Marks put it well when he said that, rather than worrying about stock price volatility, “The possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. ” 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. Above all, Imperial Actions inc. (CVE: IEI) carries the debt. But should shareholders be concerned about its use of debt?

Why Does Debt Bring Risk?

Debt helps a business until the business struggles to repay it, either with new capital or with free 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 painful) scenario is that he must raise new equity at low cost, thereby diluting shareholders over the long term. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. When we think of a business’s use of debt, we first look at cash flow and debt together.

See our latest analysis for Imperial stocks

How much debt is Imperial Equities?

The image below, which you can click for more details, shows that in June 2021 Imperial Equities had a debt of C $ 130.5 million, compared to C $ 122.9 million in one year. Net debt is about the same because it doesn’t have a lot of cash.

TSXV: IEI Debt to Equity History September 11, 2021

How strong is Imperial Equities’ balance sheet?

Zooming in on the latest balance sheet data, we can see that Imperial Equities had a liability of CA $ 49.2 million due within 12 months and a liability of CA $ 98.9 million beyond. In return, he had CA $ 378.0K in cash and CA $ 2.54M in receivables due within 12 months. As a result, its liabilities exceed the sum of its cash and (short-term) receivables by C $ 145.2 million.

This deficit casts a shadow over the C $ 37.8 million society as a towering colossus of mere mortals. We therefore believe that shareholders should watch it closely. After all, Imperial Equities would likely need a major recapitalization if it were to pay its creditors today.

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).

Low interest coverage of 2.4 times and an unusually high net debt to EBITDA ratio of 12.7 shook our confidence in Imperial stocks like a punch in the gut. This means that we would consider him to be in heavy debt. Notably, Imperial Equities’ EBIT has been fairly stable over the past year, which is not ideal given the level of leverage. When analyzing debt levels, the balance sheet is the obvious starting point. But you can’t look at debt in isolation; given that Imperial Equities will need income to service this debt. So if you want to know more about its profits, it may be worth checking out this chart of its long term profit trend.

Finally, a business needs free cash flow to pay off debts; accounting profits are not enough. The logical step is therefore to examine the proportion of this EBIT that corresponds to the actual free cash flow. Over the past three years Imperial Equities has generated free cash flow of a very solid 89% of its EBIT, more than we expected. This positions it well to repay debt if it is desirable.

Our point of view

To be frank, Imperial Equities’ net debt to EBITDA and its history of staying at the top of its total liabilities makes us rather uncomfortable with its debt levels. But at least it’s pretty decent to convert EBIT into free cash flow; it’s encouraging. Overall, we think it’s fair to say that Imperial Equities has enough debt that there is real risk around the balance sheet. If all goes well, this should increase returns, but on the other hand, the risk of permanent capital loss is increased by debt. 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. To this end, you should inquire about the 3 warning signs we spotted with Imperial Equities (including 1 which is a bit rude).

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.

If you are looking to trade a wide range of investments, open an account with the cheapest * platform professionals trust, Interactive Brokers. Their clients from more than 200 countries and territories trade stocks, options, futures, currencies, bonds and funds around the world from a single integrated account. Promoted

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.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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Is Impinj (NASDAQ: PI) Using Too Much Debt? http://freebassuk.com/is-impinj-nasdaq-pi-using-too-much-debt/ http://freebassuk.com/is-impinj-nasdaq-pi-using-too-much-debt/#respond Sat, 28 Aug 2021 14:58:09 +0000 http://freebassuk.com/is-impinj-nasdaq-pi-using-too-much-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. Above all, Impinj, Inc. (NASDAQ: PI) is in debt. But the real question is whether this debt makes the business risky.

When Is Debt a Problem?

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 painful) scenario is that he must raise new equity at low cost, thereby diluting shareholders over the long term. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash flow and debt together.

How much debt does Impinj have?

You can click on the graph below for historical numbers, but it shows that as of June 2021 Impinj had a debt of $ 84.0 million, an increase from $ 52.7 million, on a year. However, his balance sheet shows that he holds $ 112.0 million in cash, so he actually has $ 27.9 million in net cash.

NasdaqGS: PI Historical Debt to Equity August 28, 2021

How strong is Impinj’s balance sheet?

According to the latest published balance sheet, Impinj had liabilities of US $ 107.7 million due within 12 months and liabilities of US $ 14.9 million due beyond 12 months. In return, he had $ 112.0 million in cash and $ 26.0 million in receivables due within 12 months. He can therefore take advantage of $ 15.3 million in liquid assets more than total Liabilities.

This fact indicates that Impinj’s balance sheet looks quite strong, as its total liabilities are roughly equal to its liquid assets. So the $ 1.45 billion company is highly unlikely to be cash-strapped, but it’s still worth keeping an eye on the balance sheet. Put simply, the fact that Impinj has more cash than debt is arguably a good indication that it can safely manage its debt. When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the company’s future profitability will decide whether Impinj 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.

Over 12 months, Impinj has seen its income remain fairly stable and has not reported any positive earnings before interest and taxes. While that doesn’t impress much, it’s not too bad either.

So how risky is Impinj?

We are convinced that loss-making companies are, in general, riskier than profitable companies. And in the past year Impinj has recorded a loss of profit before interest and taxes (EBIT), frankly. And during the same period, it recorded negative free cash outflows of US $ 24 million and a book loss of US $ 48 million. Given that it only has $ 27.9 million in net cash, the company may need to raise more capital if it doesn’t hit breakeven soon. Even if its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company does not produce regular free cash flow. 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. Be aware that Impinj shows 3 warning signs in our investment analysis , you must know…

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 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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Iochpe-Maxion (BVMF: MYPK3) has a somewhat strained record http://freebassuk.com/iochpe-maxion-bvmf-mypk3-has-a-somewhat-strained-record/ http://freebassuk.com/iochpe-maxion-bvmf-mypk3-has-a-somewhat-strained-record/#respond Wed, 25 Aug 2021 09:12:33 +0000 http://freebassuk.com/iochpe-maxion-bvmf-mypk3-has-a-somewhat-strained-record/ Legendary fund manager Li Lu (who Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital. So it can be obvious that you need to consider debt, when you think about how risky a given stock is, because too […]]]>

Legendary fund manager Li Lu (who Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital. So it can be obvious that you need to consider debt, when you think about how risky a given stock is, because too much debt can sink a business. Above all, Iochpe-Maxion SA (BVMF: MYPK3) carries a debt. But should shareholders be concerned about its use of debt?

Why Does Debt Bring Risk?

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. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that he must raise new equity at low cost, thereby diluting shareholders over the long term. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we look at debt levels, we first consider both liquidity and debt levels.

See our latest review for Iochpe-Maxion

What is the debt of Iochpe-Maxion?

As you can see below, at the end of June 2021, Iochpe-Maxion had a debt of 5.37 billion reais, up from 5.03 billion reais a year ago. Click on the image for more details. On the other hand, he has 1.38 billion reais in cash, resulting in a net debt of around 3.99 billion reais.

BOVESPA: MYPK3 History of debt to equity 25 August 2021

How strong is Iochpe-Maxion’s balance sheet?

We can see from the most recent balance sheet that Iochpe-Maxion had liabilities of 4.78 billion reais maturing within one year and liabilities of 4.53 billion reais coming beyond. In compensation for these obligations, it had cash of R $ 1.38 billion as well as claims valued at R $ 2.14 billion due within 12 months. Thus, its liabilities exceed the sum of its cash and (short-term) receivables by 5.79 billion reais.

This deficit casts a shadow over the 2.32 billion reais society, like a colossus towering over mere mortals. We therefore believe that shareholders should watch it closely. After all, Iochpe-Maxion would likely need a major recapitalization if it were to pay its creditors today.

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.

Iochpe-Maxion has a debt to EBITDA ratio of 2.9 and its EBIT has covered its interest expense 4.1 times. This suggests that while debt levels are significant, we would stop calling them problematic. However, it should be heartwarming for shareholders to remember that Iochpe-Maxion has in fact increased its EBIT by 1,052%, over the past 12 months. If he can continue on this path, he will be able to deleverage with relative ease. The balance sheet is clearly the area you need to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether Iochpe-Maxion 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, a business needs free cash flow to pay off debts; accounting profits are not enough. We therefore always check how much of this EBIT is converted into free cash flow. In the past three years, Iochpe-Maxion has barely recorded any positive free cash flow, in total. While many businesses are operating at breakeven, we prefer to see substantial free cash flow, especially if they are already dead.

Our point of view

We would go so far as to say that Iochpe-Maxion’s total liability level was disappointing. But at least it’s decent enough to increase your EBIT; it’s encouraging. Looking at the big picture, it seems clear to us that Iochpe-Maxion’s use of debt creates risks for the company. If all goes well, this should increase returns, but on the other hand, the risk of permanent capital loss is increased by debt. The balance sheet is clearly the area you need to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist off the balance sheet. For example Iochpe-Maxion has 2 warning signs (and 1 which is a bit disturbing) we think you should 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.

If you are looking to trade a wide range of investments, open an account with the cheapest * platform professionals trust, Interactive Brokers. Their clients from more than 200 countries and territories trade stocks, options, futures, currencies, bonds and funds around the world from a single integrated account. Promoted

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.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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Does SpartanNash (NASDAQ: SPTN) have a healthy track record? http://freebassuk.com/does-spartannash-nasdaq-sptn-have-a-healthy-track-record/ http://freebassuk.com/does-spartannash-nasdaq-sptn-have-a-healthy-track-record/#respond Sun, 22 Aug 2021 14:35:58 +0000 http://freebassuk.com/does-spartannash-nasdaq-sptn-have-a-healthy-track-record/ 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. ‘ 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. […]]]>

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. ‘ 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. We can see that SpartanNash Company (NASDAQ: SPTN) uses debt in its business. But does this debt worry shareholders?

When Is Debt a Problem?

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. If things really go wrong, lenders can take over the business. 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. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. The first thing to do when considering how much debt a business uses is to look at its cash flow and debt together.

See our latest review for SpartanNash

What is the debt of SpartanNash?

You can click on the graph below for historical numbers, but it shows that SpartanNash had $ 527.1 million in debt as of April 2021, up from $ 597.3 million a year earlier. However, because it has a cash reserve of US $ 23.3 million, its net debt is less, at approximately US $ 503.8 million.

NasdaqGS: SPTN History of debt to equity August 22, 2021

Is SpartanNash’s track record healthy?

Zooming in on the latest balance sheet data, we can see that SpartanNash had liabilities of US $ 629.0 million due within 12 months and liabilities of US $ 896.0 million due beyond. In compensation for these obligations, he had cash of US $ 23.3 million as well as receivables valued at US $ 346.7 million due within 12 months. Its liabilities therefore total US $ 1.16 billion more than the combination of its cash and short-term receivables.

Given that this deficit is actually greater than the company’s market cap of $ 773.8 million, we think shareholders should really watch SpartanNash’s debt levels, like a parent watching their child go crazy. cycling for the first time. In the scenario where the company had to clean up its balance sheet quickly, it seems likely that shareholders would suffer a significant dilution.

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.

With a debt to EBITDA ratio of 2.3, SpartanNash uses debt smartly but responsibly. And the fact that her last twelve months of EBIT was 8.1 times her interest expense ties in with that theme. It is important to note that SpartanNash has increased its EBIT by 80% 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 ultimately, the company’s future profitability will decide whether SpartanNash 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 therefore always check how much of this EBIT is converted into free cash flow. Over the past three years, SpartanNash has actually generated more free cash flow than EBIT. This kind of strong cash generation warms our hearts like a puppy in a bumblebee costume.

Our point of view

SpartanNash’s ability to convert EBIT to free cash flow and its EBIT growth rate have supported us in its ability to manage its debt. In contrast, our confidence was undermined by his apparent struggle to manage his total liabilities. Looking at all of this data, we feel a little cautious about SpartanNash’s debt levels. While debt has its advantage in terms of potential higher returns, we believe shareholders should definitely consider how leverage levels might make the stock riskier. 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. To do this, you need to know the 2 warning signs we spotted with SpartanNash.

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.

When trading SpartanNash 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

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.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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