【what causes a car to backfire on deceleration】What You Must Know About PLC S.p.A.’s (BIT:PLC) Financial Strength
Investors are always looking for growth in small-cap stocks like PLC S.p.A. (
BIT:PLC
),what causes a car to backfire on deceleration with a market cap of €47m. However, an important fact which most ignore is: how financially healthy is the business? Evaluating financial health as part of your investment thesis is crucial, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength. Nevertheless, since I only look at basic financial figures, I recommend you
dig deeper yourself into PLC here
.
How does PLC’s operating cash flow stack up against its debt?
Over the past year, PLC has ramped up its debt from €1.1m to €5.2m , which includes long-term debt. With this rise in debt, PLC’s cash and short-term investments stands at €6.6m for investing into the business. On top of this, PLC has generated €21m in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 408%, indicating that PLC’s operating cash is sufficient to cover its debt. This ratio can also be interpreted as a measure of efficiency as an alternative to return on assets. In PLC’s case, it is able to generate 4.08x cash from its debt capital.
Does PLC’s liquid assets cover its short-term commitments?
At the current liabilities level of €27m, the company has been able to meet these obligations given the level of current assets of €38m, with a current ratio of 1.44x. Generally, for Real Estate companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
BIT:PLC Historical Debt January 1st 19
Can PLC service its debt comfortably?
With debt at 20% of equity, PLC may be thought of as appropriately levered. PLC is not taking on too much debt commitment, which can be restrictive and risky for equity-holders.
Next Steps:
PLC’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. In addition to this, the company will be able to pay all of its upcoming liabilities from its current short-term assets. This is only a rough assessment of financial health, and I’m sure PLC has company-specific issues impacting its capital structure decisions. You should continue to research PLC to get a more holistic view of the stock by looking at:
Future Outlook
: What are well-informed industry analysts predicting for PLC’s future growth? Take a look at our
free research report of analyst consensus
for PLC’s outlook.
Historical Performance
: What has PLC’s returns been like over the past? Go into more detail in the past track record analysis and take a look at
the free visual representations of our analysis
for more clarity.
Other High-Performing Stocks
: Are there other stocks that provide better prospects with proven track records? Explore our
free list of these great stocks here
.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
View comments
(责任编辑:Leisure)
- A Trio of Strong Performers to Consider
- JPMorgan Chase approved to process $15 billion in new PPP loans
- Smithfield Foods Says That the Company and Its Team Members Want the Same Thing: To Protect Employee Health and Safety While Also Safeguarding America’s Food Supply
- Wisconsin Father Hits 500,000 Push-up Milestone on the Path to Break World Record
- Bill.com Holdings Inc (BILL) President and CEO Rene A. Lacerte Sold $1.2 million of Shares
- CanWel Building Materials Group (TSE:CWX) Shareholders Have Felt Some Pain With A 19% Loss On Their Investment
- Nokia draws $560 million R&D loan for 5G
- Is VirnetX Holding Corporation (VHC) A Good Stock To Buy?
- Barry Manilow and Darryl Payne Settle Copyright Dispute
- 10x Genomics to Present at the BofA Securities 2020 Healthcare Conference
- US colleges in the crosshairs as coronavirus fears swirl
- Coronavirus has crippled global protest movements
- JPMorgan Increases Stake in China Securities Venture to 71%
-
National Retail Properties (NNN) Misses Q3 FFO and Revenue Estimates
National Retail Properties (NNN) came out with quarterly funds from operations (FFO) of $0.62 per sh ...[详细] -
Canada job growth slows, impact of new lockdowns still to come
By Julie GordonOTTAWA (Reuters) - Canada added more jobs than expected in November, Statistics Canad ...[详细] -
International Container Terminal Services, Inc. to Host Earnings Call
NEW YORK, NY / ACCESSWIRE /March 5, 2020/International Container Terminal Services, Inc. (ICT) will ...[详细] -
Trex (TREX) Q1 Earnings and Revenues Surpass Estimates
Trex (TREX) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimat ...[详细] -
ESTA Announces Participation in the Goldman Sachs Global Healthcare Conference
NEW YORK, June 03, 2020 (GLOBE NEWSWIRE) -- Establishment Labs Holdings Inc. (ESTA), a medical techn ...[详细] -
Bank of Montreal: More Upside After a Significant Gain?
- By Nathan ParshShares of the Bank of Montreal (NYSE:BMO) have gained more than 68% since I lastedl ...[详细] -
Pompeo says U.S. considering welcoming Hong Kong people, entrepreneurs
WASHINGTON, June 1 (Reuters) - The United States is considering the option of welcoming people from ...[详细] -
People are getting this unexpected stimulus check. Should you keep it?
Payments from the$2.2 trillion coronavirus relief packagehave gone out to many people across the Uni ...[详细] -
South African drugmaker Aspen sees no immediate impact of India's decision to curb drug exports
JOHANNESBURG, (Reuters) - The deputy chief executive of South Africa's Aspen Pharmacare said on Fri ...[详细] -
'Big shoes to fill': UniCredit shares tumble as CEO Mustier quits
By Valentina Za and Simon JessopMILAN (Reuters) - The abrupt resignation of Chief Executive Jean Pie ...[详细]
GBP/USD Price Forecast – British Pound Continues to Struggle at Same Level
Before You Buy IBI Group Inc. (TSE:IBG), Consider Its Volatility
- EUR/USD Price Forecast – Euro Pulls Back And Recognizes Gravity Again
- Omaha Public Facilities Corporation, NE -- Moody's assigns Aa2 to Omaha, NE's lease bonds; outlook stable
- InvestmentPitch Media Video Discusses Recent eResearch Buy Recommendation on Peak Positioning Technologies, Parent Company of a Group of FinTech Subsidiaries operating in China - Video Available on Investmentpitch.com
- Labrador Iron Ore Royalty Corporation Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
- LOPE SHAREHOLDER ALERT: Lawsuit Filed For Grand Canyon Investors
- Founder Alexander Reilley Just Bought 10.0% More Shares In Loungers plc (LON:LGRS)
- Eversource (ES) Q3 Earnings Lag, Revenues Beat Estimates