Rotten Tomato Stocks
No Result
View All Result
  • News
    Japan Games Maker Nintendo’s Profit Slips Amid Chips Crunch

    Japan Games Maker Nintendo’s Profit Slips Amid Chips Crunch

    Dow drops nearly 100 points on losses for Intel, Nike stocks

    Dow drops nearly 100 points on losses for Intel, Nike stocks

    Spanish Court: Amazon Violated Labor Law With Delivery App

    Spanish Court: Amazon Violated Labor Law With Delivery App

    Alphabet Posts Lower Q4 Profit Amid Ad Squeeze, Competition

    Alphabet Posts Lower Q4 Profit Amid Ad Squeeze, Competition

  • NYSE
    Chipotle stock falls after ‘tightening’ consumer spending leads to second earnings miss in 5 years

    Chipotle stock falls after ‘tightening’ consumer spending leads to second earnings miss in 5 years

    Duke Energy Corp. stock falls Tuesday, underperforms market

    Duke Energy Corp. stock falls Tuesday, underperforms market

    EnPro Industries, Inc. (NYSE:NPO) Stock Holdings Lowered by Congress Asset Management Co. MA

    EnPro Industries, Inc. (NYSE:NPO) Stock Holdings Lowered by Congress Asset Management Co. MA

    Holley Shares Fall 8.2% After Hours As CEO Retires, Preliminary 4Q Sales Decline

    Holley Shares Fall 8.2% After Hours As CEO Retires, Preliminary 4Q Sales Decline

  • NASDAQ
    Crocs (NASDAQ:CROX) Seems To Use Debt Quite Sensibly

    Crocs (NASDAQ:CROX) Seems To Use Debt Quite Sensibly

    Novavax Inc. stock falls Tuesday, underperforms market

    Novavax Inc. stock falls Tuesday, underperforms market

    El Pollo Loco (NASDAQ:LOCO) Stock Rating Lowered by StockNews.com

    El Pollo Loco (NASDAQ:LOCO) Stock Rating Lowered by StockNews.com

    ZoomInfo Posts 4Q Results, Shares Decline Almost 6% After Hours

    ZoomInfo Posts 4Q Results, Shares Decline Almost 6% After Hours

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

  • News
    Japan Games Maker Nintendo’s Profit Slips Amid Chips Crunch

    Japan Games Maker Nintendo’s Profit Slips Amid Chips Crunch

    Dow drops nearly 100 points on losses for Intel, Nike stocks

    Dow drops nearly 100 points on losses for Intel, Nike stocks

    Spanish Court: Amazon Violated Labor Law With Delivery App

    Spanish Court: Amazon Violated Labor Law With Delivery App

    Alphabet Posts Lower Q4 Profit Amid Ad Squeeze, Competition

    Alphabet Posts Lower Q4 Profit Amid Ad Squeeze, Competition

  • NYSE
    Chipotle stock falls after ‘tightening’ consumer spending leads to second earnings miss in 5 years

    Chipotle stock falls after ‘tightening’ consumer spending leads to second earnings miss in 5 years

    Duke Energy Corp. stock falls Tuesday, underperforms market

    Duke Energy Corp. stock falls Tuesday, underperforms market

    EnPro Industries, Inc. (NYSE:NPO) Stock Holdings Lowered by Congress Asset Management Co. MA

    EnPro Industries, Inc. (NYSE:NPO) Stock Holdings Lowered by Congress Asset Management Co. MA

    Holley Shares Fall 8.2% After Hours As CEO Retires, Preliminary 4Q Sales Decline

    Holley Shares Fall 8.2% After Hours As CEO Retires, Preliminary 4Q Sales Decline

  • NASDAQ
    Crocs (NASDAQ:CROX) Seems To Use Debt Quite Sensibly

    Crocs (NASDAQ:CROX) Seems To Use Debt Quite Sensibly

    Novavax Inc. stock falls Tuesday, underperforms market

    Novavax Inc. stock falls Tuesday, underperforms market

    El Pollo Loco (NASDAQ:LOCO) Stock Rating Lowered by StockNews.com

    El Pollo Loco (NASDAQ:LOCO) Stock Rating Lowered by StockNews.com

    ZoomInfo Posts 4Q Results, Shares Decline Almost 6% After Hours

    ZoomInfo Posts 4Q Results, Shares Decline Almost 6% After Hours

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

No Result
View All Result
Rotten Tomato Stocks
No Result
View All Result

Is Glaukos (NYSE:GKOS) Weighed On By Its Debt Load?

Editorial Staff by Editorial Staff
August 15, 2021
0
Is Glaukos (NYSE:GKOS) Weighed On By Its Debt Load?

The external fund manager backed by Berkshire Hathaway’s Charlie Munger, Li Lu, makes no bones about it when he says ‘The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.’ It’s only natural to consider a company’s balance sheet when you examine how risky it is, since debt is often involved when a business collapses. As with many other companies Glaukos Corporation (NYSE:GKOS) makes use of debt. But the more important question is: how much risk is that debt creating?

When Is Debt Dangerous?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Having said that, the most common situation is where a company manages its debt reasonably well – and to its own advantage. When we think about a company’s use of debt, we first look at cash and debt together.

What Is Glaukos’s Net Debt?

As you can see below, at the end of June 2021, Glaukos had US$279.3m of debt, up from US$184.0m a year ago. Click the image for more detail. But on the other hand it also has US$418.6m in cash, leading to a US$139.2m net cash position.

debt-equity-history-analysis
NYSE:GKOS Debt to Equity History August 15th 2021

How Strong Is Glaukos’ Balance Sheet?

We can see from the most recent balance sheet that Glaukos had liabilities of US$349.5m falling due within a year, and liabilities of US$109.9m due beyond that. On the other hand, it had cash of US$418.6m and US$37.6m worth of receivables due within a year. So its total liabilities are just about perfectly matched by its shorter-term, liquid assets.

Having regard to Glaukos’ size, it seems that its liquid assets are well balanced with its total liabilities. So while it’s hard to imagine that the US$2.28b company is struggling for cash, we still think it’s worth monitoring its balance sheet. Despite its noteworthy liabilities, Glaukos boasts net cash, so it’s fair to say it does not have a heavy debt load! The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Glaukos’s ability to maintain a healthy balance sheet going forward.

In the last year Glaukos wasn’t profitable at an EBIT level, but managed to grow its revenue by 34%, to US$284m. With any luck the company will be able to grow its way to profitability.

So How Risky Is Glaukos?

By their very nature companies that are losing money are more risky than those with a long history of profitability. And in the last year Glaukos had an earnings before interest and tax (EBIT) loss, truth be told. And over the same period it saw negative free cash outflow of US$19m and booked a US$60m accounting loss. While this does make the company a bit risky, it’s important to remember it has net cash of US$139.2m. That means it could keep spending at its current rate for more than two years. Glaukos’s revenue growth shone bright over the last year, so it may well be in a position to turn a profit in due course. By investing before those profits, shareholders take on more risk in the hope of bigger rewards. The balance sheet is clearly the area to focus on when you are analysing debt. 

Related Posts

Chipotle stock falls after ‘tightening’ consumer spending leads to second earnings miss in 5 years
NYSE

Chipotle stock falls after ‘tightening’ consumer spending leads to second earnings miss in 5 years

February 7, 2023
Duke Energy Corp. stock falls Tuesday, underperforms market
NYSE

Duke Energy Corp. stock falls Tuesday, underperforms market

February 7, 2023
EnPro Industries, Inc. (NYSE:NPO) Stock Holdings Lowered by Congress Asset Management Co. MA
NYSE

EnPro Industries, Inc. (NYSE:NPO) Stock Holdings Lowered by Congress Asset Management Co. MA

February 7, 2023
Holley Shares Fall 8.2% After Hours As CEO Retires, Preliminary 4Q Sales Decline
NYSE

Holley Shares Fall 8.2% After Hours As CEO Retires, Preliminary 4Q Sales Decline

February 6, 2023
Load More
Next Post
Boeing Astronaut Capsule Grounded for Months by Valve Issue

Boeing Astronaut Capsule Grounded for Months by Valve Issue

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

POPULAR NEWS

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

April 14, 2021
CN Rail Stock Is So Undervalued That it’s Absurd

CN Rail Stock Is So Undervalued That it’s Absurd

May 2, 2021
Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

September 14, 2021
US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

June 17, 2021
10 Warning Signs That Should Tell You “This Stock is in Trouble”

10 Warning Signs That Should Tell You “This Stock is in Trouble”

November 11, 2019

EDITOR'S PICK

Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office

Twitter Faces Lawsuits Over Unpaid Rent for US HQ, UK Office

January 25, 2023
U.S. Bancorp Posts Lower 1Q Profit

U.S. Bancorp Posts Lower 1Q Profit

April 14, 2022
Avoid This Controversial Canadian Stock

Avoid This Controversial Canadian Stock

January 20, 2020
Telenet Group (OTCMKTS:TLGHF) Stock Price Down 16%

Telenet Group (OTCMKTS:TLGHF) Stock Price Down 16%

March 26, 2020

Stay Updated

Get breaking news delivered straight into your inbox

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Rotten Tomato stocks is a wholly-owned subsidiary of Grainne Capital Limited.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Rotten Tomato Stocks cover the companies and markets that are declining, failing or headed for disaster. We help investors spot the down tends and recognize when something smells rotten.

RECENT POSTS

Japan Games Maker Nintendo’s Profit Slips Amid Chips Crunch

Chipotle stock falls after ‘tightening’ consumer spending leads to second earnings miss in 5 years

Duke Energy Corp. stock falls Tuesday, underperforms market

POPULAR POSTS

EnPro Industries, Inc. (NYSE:NPO) Stock Holdings Lowered by Congress Asset Management Co. MA

Crocs (NASDAQ:CROX) Seems To Use Debt Quite Sensibly

Novavax Inc. stock falls Tuesday, underperforms market

© Copyright 2023 RottenTomatoStocks. All Rights Reserved 

Disclaimer | Privacy Policy

No Result
View All Result
  • HOME
  • NEWS
  • NYSE
  • NASDAQ
  • OTC
  • TSX

© 2021 RottenTomatoStocks.com

error: Content is protected !!
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.