Rotten Tomato Stocks
No Result
View All Result
  • News
    US Stocks Slip, on Track for 4th Monthly Loss This Year

    US Stocks Slip, on Track for 4th Monthly Loss This Year

    US Consumer Confidence Slumps to Lowest Level in 16 Months

    US Consumer Confidence Slumps to Lowest Level in 16 Months

    U.S. stock indexes book biggest daily drop in over a week despite strong economic data

    U.S. stock indexes book biggest daily drop in over a week despite strong economic data

    Panera Bread Product Recalled

    Panera Bread Product Recalled

  • NYSE
    Thor Industries Shares Decline 2.7% After Expectations of Muted Short-Term Demand

    Thor Industries Shares Decline 2.7% After Expectations of Muted Short-Term Demand

    Hanesbrands Inc. stock falls Wednesday, underperforms market

    Hanesbrands Inc. stock falls Wednesday, underperforms market

    Digital Realty Trust (NYSE:DLR) Shares Down 7.3% on Insider Selling

    Digital Realty Trust (NYSE:DLR) Shares Down 7.3% on Insider Selling

    NIO shares extend losses as Chinese EV maker denies short-seller report

    NIO shares extend losses as Chinese EV maker denies short-seller report

  • NASDAQ
    Duck Creek Tech Shares Decline 12% on Wider 3Q Loss, Lower FY22 Rev View

    Duck Creek Tech Shares Decline 12% on Wider 3Q Loss, Lower FY22 Rev View

    Plug Power Inc. stock falls Wednesday, underperforms market

    Plug Power Inc. stock falls Wednesday, underperforms market

    Nova (NASDAQ:NVMI) Hits New 52-Week Low on Analyst Downgrade

    Nova (NASDAQ:NVMI) Hits New 52-Week Low on Analyst Downgrade

    Tesla stock lower ahead of second-quarter sales

    Tesla stock lower ahead of second-quarter sales

  • 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
    US Stocks Slip, on Track for 4th Monthly Loss This Year

    US Stocks Slip, on Track for 4th Monthly Loss This Year

    US Consumer Confidence Slumps to Lowest Level in 16 Months

    US Consumer Confidence Slumps to Lowest Level in 16 Months

    U.S. stock indexes book biggest daily drop in over a week despite strong economic data

    U.S. stock indexes book biggest daily drop in over a week despite strong economic data

    Panera Bread Product Recalled

    Panera Bread Product Recalled

  • NYSE
    Thor Industries Shares Decline 2.7% After Expectations of Muted Short-Term Demand

    Thor Industries Shares Decline 2.7% After Expectations of Muted Short-Term Demand

    Hanesbrands Inc. stock falls Wednesday, underperforms market

    Hanesbrands Inc. stock falls Wednesday, underperforms market

    Digital Realty Trust (NYSE:DLR) Shares Down 7.3% on Insider Selling

    Digital Realty Trust (NYSE:DLR) Shares Down 7.3% on Insider Selling

    NIO shares extend losses as Chinese EV maker denies short-seller report

    NIO shares extend losses as Chinese EV maker denies short-seller report

  • NASDAQ
    Duck Creek Tech Shares Decline 12% on Wider 3Q Loss, Lower FY22 Rev View

    Duck Creek Tech Shares Decline 12% on Wider 3Q Loss, Lower FY22 Rev View

    Plug Power Inc. stock falls Wednesday, underperforms market

    Plug Power Inc. stock falls Wednesday, underperforms market

    Nova (NASDAQ:NVMI) Hits New 52-Week Low on Analyst Downgrade

    Nova (NASDAQ:NVMI) Hits New 52-Week Low on Analyst Downgrade

    Tesla stock lower ahead of second-quarter sales

    Tesla stock lower ahead of second-quarter sales

  • 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 Globus Maritime (NASDAQ:GLBS) Using Debt In A Risky Way?

Editorial Staff by Editorial Staff
August 27, 2021
0
Is Globus Maritime (NASDAQ:GLBS) Using Debt In A Risky Way?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, ‘The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.’ When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, Globus Maritime Limited (NASDAQ:GLBS) does carry debt. But the real question is whether this debt is making the company risky.

Why Does Debt Bring Risk?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. 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. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first step when considering a company’s debt levels is to consider its cash and debt together.

How Much Debt Does Globus Maritime Carry?

You can click the graphic below for the historical numbers, but it shows that Globus Maritime had US$30.7m of debt in March 2021, down from US$37.4m, one year before. But it also has US$51.4m in cash to offset that, meaning it has US$20.7m net cash.

debt-equity-history-analysis
NasdaqCM:GLBS Debt to Equity History August 27th 2021

How Healthy Is Globus Maritime’s Balance Sheet?

According to the last reported balance sheet, Globus Maritime had liabilities of US$12.4m due within 12 months, and liabilities of US$25.4m due beyond 12 months. On the other hand, it had cash of US$51.4m and US$98.0k worth of receivables due within a year. So it can boast US$13.7m more liquid assets than total liabilities.

This excess liquidity suggests that Globus Maritime is taking a careful approach to debt. Because it has plenty of assets, it is unlikely to have trouble with its lenders. Simply put, the fact that Globus Maritime has more cash than debt is arguably a good indication that it can manage its debt safely. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Globus Maritime can strengthen its balance sheet over time.

Over 12 months, Globus Maritime saw its revenue hold pretty steady, and it did not report positive earnings before interest and tax. While that hardly impresses, its not too bad either.

So How Risky Is Globus Maritime?

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 Globus Maritime 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$27m and booked a US$9.1m accounting loss. With only US$20.7m on the balance sheet, it would appear that its going to need to raise capital again soon. Even though its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company doesn’t produce free cash flow regularly. 

Related Posts

Duck Creek Tech Shares Decline 12% on Wider 3Q Loss, Lower FY22 Rev View
NASDAQ

Duck Creek Tech Shares Decline 12% on Wider 3Q Loss, Lower FY22 Rev View

June 29, 2022
Plug Power Inc. stock falls Wednesday, underperforms market
NASDAQ

Plug Power Inc. stock falls Wednesday, underperforms market

June 29, 2022
Nova (NASDAQ:NVMI) Hits New 52-Week Low on Analyst Downgrade
NASDAQ

Nova (NASDAQ:NVMI) Hits New 52-Week Low on Analyst Downgrade

June 29, 2022
Tesla stock lower ahead of second-quarter sales
NASDAQ

Tesla stock lower ahead of second-quarter sales

June 29, 2022
Load More
Next Post
Intel Corp. stock falls Thursday, underperforms market

Intel Corp. stock falls Thursday, underperforms market

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
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
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
CN Rail Stock Is So Undervalued That it’s Absurd

CN Rail Stock Is So Undervalued That it’s Absurd

May 2, 2021
Bitcoin Is Falling: Should You Buy the Dip?

Bitcoin Is Falling: Should You Buy the Dip?

May 3, 2021

EDITOR'S PICK

Why Tesla Stock Crashed and Burned Again Today

Why Tesla Stock Crashed and Burned Again Today

July 8, 2021
We Think Coca-Cola (NYSE:KO) Can Stay On Top Of Its Debt

We Think Coca-Cola (NYSE:KO) Can Stay On Top Of Its Debt

May 9, 2022
Ferrellgas Partners looks to voluntarily delist from NYSE

Ferrellgas Partners looks to voluntarily delist from NYSE

December 26, 2019
Most Nasdaq stocks are falling despite big market bounce

Most Nasdaq stocks are falling despite big market bounce

November 29, 2021

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

US Stocks Slip, on Track for 4th Monthly Loss This Year

Thor Industries Shares Decline 2.7% After Expectations of Muted Short-Term Demand

Hanesbrands Inc. stock falls Wednesday, underperforms market

POPULAR POSTS

Digital Realty Trust (NYSE:DLR) Shares Down 7.3% on Insider Selling

Duck Creek Tech Shares Decline 12% on Wider 3Q Loss, Lower FY22 Rev View

Plug Power Inc. stock falls Wednesday, underperforms market

© Copyright 2021 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.